New Mexico § 58-1-79 - Unlawful gratuity or compensation; transactions of persons connected with state bank

§ 58-1-79. Unlawful gratuity or compensation; transactions of persons connected with state bank

A. It is unlawful for an affiliate of a bank or for an officer, director or employee

of a bank, or affiliate of a bank: (1) to solicit, accept or agree to accept, directly or indirectly, from any person

other than the institution any gratuity, compensation or other personal benefit for

any action taken by the institution or for endeavoring to procure any such action; (2) to have any interest, direct or indirect, in the purchase at less than its face

value of any evidence of indebtedness issued by the institution; (3) to require any borrower to purchase insurance from an affiliate of a bank, or

from an officer, director or employee of a bank or affiliate of a bank, or through

a particular insurance company, agent, solicitor or broker, as a condition precedent

to the making of a loan or to decline adequate existing insurance where such existing

insurance is provided by an insurance company licensed by this state. Provided, however, a bank may require a borrower to supply such insurance as may

reasonably be necessary for the protection of the bank in making a loan. B. In this section the term “affiliate” includes: (1) any person who holds a majority of the stock of a bank or has been determined

by the commissioner [director of the financial institutions division of the regulation

and licensing department] to hold a controlling interest therein, any other corporation

in which such person owns a majority of the stock and any partnership in which he

has an interest; (2) any corporation in which the institution or an officer, director or employee thereof

holds a majority of the stock and any partnership in which such person has an interest; (3) any corporation of which a majority of the directors are officers, directors or

employees of the institution or of which officers, directors, trustees or employees

constitute a majority of the directors of the institution.