New Mexico § 45-5-411 - Bond and terms; requirements of bonds

§ 45-5-411. Bond and terms; requirements of bonds

A. Except as otherwise provided in Subsection C of this section, the court shall require

a conservator to furnish a bond with a surety the court specifies, or require an alternative

asset-protection arrangement, conditioned on faithful discharge of all duties of the

conservator. The court may waive the requirement only if the court finds that a bond or other

asset-protection arrangement is not necessary to protect the interests of the individual

subject to conservatorship. Except as otherwise provided in Subsection C of this section, the court shall not

waive the requirement if the conservator is in the business of serving as a conservator

and is being paid for the conservator's service. B. Unless the court directs otherwise, the bond required under this section shall

be in the amount of the aggregate capital value of the conservatorship estate, plus

one year's estimated income, less the value of property deposited under an arrangement

requiring a court order for its removal and real property the conservator lacks power

to sell or convey without specific court authorization. The court, in place of surety on a bond, may accept collateral for the performance

of the bond, including a pledge of securities or a mortgage of real property. C. A financial institution that possesses and is exercising general trust powers in

New Mexico is not required to give a bond under this section. As used in this subsection, “ financial institution ” means a state- or federally chartered, federally insured depository bank or trust

company. D. The following rules apply to the bond required under this section: (1) except as otherwise provided by the bond, the surety and the conservator are jointly

and severally liable; (2) by executing a bond provided by a conservator, the surety submits to the personal

jurisdiction of the court that issued letters of conservatorship in a proceeding relating

to the duties of the conservator in which the surety is named as a party. Notice of the proceeding shall be given to the surety; (3) on petition of a successor conservator or person affected by a breach of the obligation

of the bond, a proceeding may be brought against the surety for breach of the obligation

of the bond; and (4) a proceeding against the bond may be brought until liability under the bond is

exhausted. E. If a bond under this section is not renewed by the conservator, the surety or sureties

immediately shall give notice to the court and the protected person subject to conservatorship.