Chapter 58 — Chapter 58

Any officer, director, employee or agent of any association subject to the Savings and Loan Act who, for the purpose of concealing any fact or suppressing any evidence against himself or against any other person, abstracts, removes, mutilates, destroys or secretes any paper, book…

liability. The supervisor or any examiner, inspector, deputy, assistant or clerk appointed or acting under the provisions of the Savings and Loan Act who fails to keep secret any facts or information regarding an association obtained in the course of an examination or by reason o…

Any association may convert itself into a federal association in accordance with the provisions of the Home Owners Loan Act of 1933, as amended, upon a vote of fifty-one percent or more of the votes of the members cast at an annual meeting or at any special meeting called for the…

Any federal association may convert itself into an association under the Savings and Loan Act upon a vote of fifty-one percent or more of the votes of members of the federal association cast at an annual meeting or at a special meeting called for the purpose. Copies of the minute…

Chapter 58, Article 11 NMSA 1978 may be cited as the "Credit Union Act". History: Laws 1987, ch. 311, § 1; 1997, ch. 195, § 1.

A. Any seven or more residents of this state of legal age that share the common bond referred to in Section 58-11-21 NMSA 1978 may organize a credit union and become charter members thereof by complying with this section. B. The organizers shall prepare, adopt and execute in trip…

In order to simplify the organization of credit unions, the director shall cause to be prepared model articles of organization and bylaws, consistent with the Credit Union Act, which may be used by credit union organizers for their guidance. Such articles of organization and byla…

A. The articles of organization and the bylaws may be amended as provided in the articles and bylaws, respectively. Amendments to the articles of organization or bylaws shall be submitted to the director who shall approve or disapprove the proposed amendments within thirty days a…

A. The name of every credit union organized under or subject to the Credit Union Act shall include the phrase "credit union". No credit union shall adopt a name either identical to the name of any other credit union doing business in this state or so similar to the name of any ot…

A. A credit union may change its principal place of business within this state upon thirty days notice to the director. B. A credit union may provide services through service facilities. C. A credit union may individually or in conjunction with other credit unions or other financ…

The fiscal year of each credit union organized under or subject to the Credit Union Act shall end on the last day of December. History: Laws 1987, ch. 311, § 15; 1997, ch. 195, § 10.

director's duties and powers. A. An out-of-state credit union organized pursuant to the laws of another state or territory of the United States may conduct business as a credit union in this state with the approval of the director. B. Before granting approval for an out-of-state …

A credit union organized under or subject to the Credit Union Act may do business outside this state, provided that it is legal for it to do so in the foreign state or territory involved. If the director deems it necessary to conduct an examination of the out-of- state office of …

In addition to the powers authorized elsewhere in the Credit Union Act, a credit union may: A. enter into contracts of any nature; B. sue and be sued; C. adopt, use and display a corporate seal; D. acquire, lease, hold, assign, pledge, hypothecate, sell and discount or otherwise …

A credit union may exercise all incidental powers that are convenient, suitable or necessary to enable it to carry out its purposes as provided in its bylaws. History: Laws 1987, ch. 311, § 19; 1997, ch. 195, § 14.

As used in the Credit Union Act: A. "board member" means a member of the board of directors of a credit union; B. "capital" means share accounts, membership shares, reserves and undivided earnings; C. "credit union" means a cooperative, nonprofit, financial institution organized …

In addition to other powers provided for the director and for credit unions organized under or subject to the Credit Union Act and notwithstanding any law to the contrary, the director may adopt such rules and regulations as he deems necessary and proper, granting to state credit…

A. The membership of a credit union shall consist of those persons who share a common bond set forth in the bylaws, have been duly admitted members, have paid any required one-time or periodic membership fee, or both, have paid for in cash or its equivalent one or more shares and…

Central credit unions may be organized under the Credit Union Act, and such credit unions organized under prior law are subject to that act. In addition to the members referred to in Section 58-11-21 NMSA 1978, the membership of a central credit union may include: A. executive of…

Any credit union organized under or subject to the Credit Union Act may accept as a member any other credit union organized under or subject to that act or any other act. History: Laws 1987, ch. 311, § 23; 1997, ch. 195, § 17.

Members who cease to be eligible for membership in a credit union for reasons other than expulsion may be permitted to retain their membership in the credit union, subject to any restrictions which may be established by the bylaws. History: Laws 1987, ch. 311, § 24; 1997, ch. 195…

The members of a credit union shall not be personally or individually liable for the payments of its debts solely by virtue of holding membership. History: Laws 1987, ch. 311, § 25.

A. The annual meeting and any special meetings of the members shall be held in accordance with the bylaws. B. At all meetings a member shall have but one vote, irrespective of his shareholdings. No member may vote by proxy, but a member may vote by absentee ballot, mail or other …

A. A credit union shall be directed by a board of directors, consisting of an odd number of members, as provided in the bylaws, but not less than five in number, to be elected annually by and from the members. The election shall be held at the annual meeting or in such other mann…

Within thirty days after election or appointment, a record of the names, addresses and titles of the members of the board, committees and all executive officers of the credit union shall be filed with the division on forms provided by the director. History: Laws 1987, ch. 311, § …

The board of directors of a credit union shall fill any vacancies occurring in the board until successors elected at the next annual election have qualified. If more than fifty percent of the board positions become vacant at any one time, a special meeting of the members shall be…

A. The director shall be responsible for the supervision and regulation of credit unions organized under the Credit Union Act or previously organized under the Credit Union Act. B. The director may delegate to any officer or employee of the division the power to perform any of hi…

No board or committee member may be compensated for services performed in the regular course of duties pertaining to that board or committee position. Notwithstanding any provision of the Credit Union Act to the contrary, board or committee members may be compensated for those se…

No board member, committee member, executive officer, agent or employee of a credit union shall in any manner, directly or indirectly, participate in the deliberation upon or the determination of any question affecting his pecuniary interest, the pecuniary interest of his parents…

A. At an organizational meeting held within thirty days following each annual election, the board of directors shall elect from its own number a chairman, a vice chairman and a secretary. It shall also elect any other board officers that are specified in the bylaws. B. The terms …

The board of directors shall have the authority and responsibility for providing the general direction of the business affairs, funds and records of the credit union. In addition to all other powers authorized in the Credit Union Act, the board of directors may: A. limit the doll…

ANNOTATIONS Repeals. — Laws 1997, ch. 195, § 41 repealed 58-11-34 NMSA 1978, as enacted by Laws 1987, ch. 311, § 34, relating to the appointment of credit union executive committees by the board of directors, effective July 1, 1997. For provisions of former section, see the 1996 …

Each month either the board of directors or the executive committee shall meet. These bodies shall meet on other occasions as necessary. History: Laws 1987, ch. 311, § 35.

A. The board of directors shall: (1) act upon applications for membership or to appoint one or more membership officers to approve applications for membership under such conditions as the board prescribes. A record of the actions taken by a membership officer shall be made availa…

ANNOTATIONS Repeals. — Laws 1997, ch. 195, § 41 repealed 58-11-37 NMSA 1978, as amended by Laws 1991, ch. 51, § 11, relating to the duties and responsibilities of credit union credit committees, effective July 1, 1997. For provisions of former section, see the 1996 NMSA 1978 on N…

A. The supervisory committee shall make or cause to be made by a certified public accountant or other qualified person or firm a comprehensive annual audit of the books and affairs of the credit union. It shall submit a report of each annual audit to the board of directors and ma…

A. The bylaws of a credit union may require the members to subscribe to and make payments on membership shares. B. Share accounts, membership shares and deposit accounts shall be subscribed to and paid for in such manner as the bylaws prescribe. C. The par value of shares and mem…

Any person aggrieved or directly affected by a final order of the director may obtain a review of the order in the district court pursuant to the provisions of Section 39-3-1.1 NMSA 1978. History: Laws 1987, ch. 311, § 4; 1999, ch. 265, § 58.

A. Periodically, and after provision for the required reserves, the board of directors may declare, dividends to be paid on share accounts and membership shares. Dividends may be paid from the credit union's undivided earnings; provided, no such payment shall result in or increas…

A. Funds in share accounts and deposit accounts may be withdrawn for payment to the account holder or to third parties, in a manner and in accordance with procedures established by the board of directors subject to any regulations or orders the director prescribes. B. Share accou…

Payments on share accounts and deposit accounts may be received from a minor who may withdraw funds from those accounts, including the dividends and interest thereon. Payments on share accounts and deposit accounts by a minor and withdrawal by the minor shall be valid in all resp…

A. A member may designate any person to own a share account or deposit account in joint tenancy with the right of survivorship, as a tenant in common or under any other form of joint ownership permitted by law, but no co-owner, unless also a member in his own right, shall be perm…

A. Share accounts and deposit accounts may be owned by a member in trust for a beneficiary or owned by a non-member in trust for a beneficiary who is a member. B. Beneficiaries may be minors, but no beneficiary, unless a credit union member, shall be permitted to vote, obtain loa…

Notwithstanding any other provision of law, a credit union may establish share accounts and deposit accounts payable to one or more persons during their lifetimes and on the death of all of them to one or more payable-on-death payees. Any transfer to a payable-on-death payee is e…

A credit union shall have a lien on the membership shares, share accounts and deposit accounts and accumulated dividends and interest of a member's individual, joint or trust account for any sum owed the credit union from that member or for any extension of credit endorsed or gua…

A. If there has been no activity in a share or deposit account for one year, except for the posting of dividends or interest, the credit union may impose a reasonable maintenance fee as provided in the bylaws. B. Any account presumed abandoned shall be disposed of in accordance w…

A. Before the organizers of a credit union submit the organizational documents to the director under Section 58-11-10 NMSA 1978, they shall apply for insurance of share accounts and deposit accounts by the national credit union administration's share insurance fund or, alternativ…

A. A credit union may extend credit to members for such purposes and upon such conditions as the bylaws may provide. B. The interest rates on extensions of credit shall be authorized and determined by the board of directors or any person or committee to which it has delegated tha…

A. The director shall examine or cause to be examined each credit union. A credit union and any of its board members, executive officers, agents and employees shall give the director or his representatives full access to all books, papers, securities, records and other desired so…

A credit union may purchase or make available insurance for its members either on an individual or group basis, subject to the insurance laws of this state and the rules and regulations established by the superintendent of insurance. History: Laws 1987, ch. 311, § 50.