New Mexico § 58-1-61 - Certificate of authority

§ 58-1-61. Certificate of authority

A. A request for a certificate of authority shall be made to the commissioner [director

of the financial institutions division of the regulation and licensing department]

after he has approved the application to file the articles of incorporation with the

corporation commission [public regulation commission] and all requirements have been

met. The request shall contain: (1) the address at which the bank will operate; (2) a statement that all of the bylaws adopted have been attached as an exhibit to

the request; (3) a statement that the full amount of the authorized capital structure has been

paid to the escrow agent; (4) the signed oaths of the directors; and (5) such other information as the commissioner [director of the financial institutions

division] may require to enable him to determine whether a certificate of authority

should be issued. B. The commissioner [director] shall approve the request for a certificate of authority

within twenty days after the request has been accepted by him and he has been satisfied

that all requirements have been complied with and he shall issue a certificate of

authority for the bank to transact business. Before actually transacting any banking business or accepting any deposits, the

applicant must file with the commissioner [director] satisfactory proof showing that

insurance of deposits has been obtained through the federal deposit insurance corporation

or other appropriate agency or instrumentality of the United States government. C. It is unlawful for a proposed state bank to perform any act, other than to perfect

its organization, before receiving a certificate of authority to operate. D. If the commissioner [director] denies the request for a certificate of authority,

he shall within twenty days of such action mail a notice to the incorporators, stating

the reasons for denying the certificate of authority. E. If no request for a certificate of authority is filed within one year following

the grant of permission to organize, or if a certificate of authority has been finally

denied, or if the bank fails to commence business within one year after the issuance

of a certificate of authority, the proposed bank, or any money paid by subscribers

to stock, shall be liquidated and distributed in accordance with the order of the

commissioner [director of the financial institutions division]. If an improper expenditure has been made, the commissioner [director] may order

the persons who were incorporators or directors at the time to restore the sum by

equal contributions.