New Mexico § 58-1-22 - Investments

§ 58-1-22. Investments

A. In addition to other investments expressly authorized by the Banking Act, a state

bank may: (1) purchase or discount obligations that satisfy the requirements of the Banking

Act for loans; (2) purchase or discount obligations of the United States or a state of the United

States or bonds or debentures issued pursuant to the Federal Farm Loan Act, 1 as amended, and the Farm Credit Act of 1933, 2 as amended; (3) purchase or discount obligations in amounts not to exceed ten percent of its capital

and surplus for each of the following: the inter-American development bank, the African

development bank, the Asian development bank and the international bank for reconstruction

and redevelopment; (4) purchase or discount obligations of a territory of the United States, a subdivision

or instrumentality of a state or territory of the United States or an authority organized

under either state law, an interstate compact or by substantially identical legislation

adopted by two or more states; (5) purchase or discount obligations of a corporation chartered by the United States

or a state thereof doing business in the United States that are approved by the director

for investment; (6) invest in industrial revenue bonds issued by the state or any of its political

subdivisions up to twenty percent of its capital and surplus for any one issue, with

a total in all such issues not to exceed fifty percent of its capital and surplus; (7) invest an amount not exceeding twenty percent of its capital and surplus in any

one issue for revenue obligations issued to provide, enlarge or improve electric power,

gas, water, sewer facilities and other public facilities by any city or town located

in the state; and (8) invest in any obligation in which a national bank is authorized to invest at the

time of making the investment, notwithstanding any provisions to the contrary in the

Banking Act. B. A state bank authorized to exercise trust powers may invest an amount not exceeding

ten percent of its capital in the stock of a corporation owned entirely by banks and

exclusively engaged in a trust company business and maintaining its offices on the

premises used by the bank or another bank also owning part of its capital stock or

adjacent to the premises of any bank owning part of its stock. C. A state bank may invest an amount not exceeding twenty-five percent of its capital

and surplus in the stock and obligations of a corporation owning the premises occupied

by the bank for the transaction of its business. D. A state bank may purchase or sell without recourse against it any security upon

the order of a customer and for his account. E. A state bank may invest an amount approved by the director in the stock of a corporation

owned entirely by banks and engaged in providing record-keeping services using electronic

or other similar machines. F. A state bank may make an investment or conduct an activity the director determines

is a part of or is incidental to the business of banking notwithstanding any provision

to the contrary in the Banking Act. 1

12 U.S.C.A. § 344 et seq. 2

48 Stat. 257.