HOUSE BILL 643

49th legislature - STATE OF NEW MEXICO - first session, 2009

INTRODUCED BY

Joni Marie Gutierrez

AN ACT

RELATING TO PUBLIC MONEY; PROVIDING AN ALTERNATIVE PROCEDURE FOR INVESTING PUBLIC MONEY IN BANKS AND SAVINGS AND LOAN ASSOCIATIONS.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     Section 1. Section 6-10-24 NMSA 1978 (being Laws 1939, Chapter 21, Section 1, as amended) is amended to read:

     "6-10-24. DEPOSIT OF PUBLIC FUNDS IN FEDERALLY INSURED BANKS, SAVINGS AND LOAN ASSOCIATIONS AND CREDIT UNIONS--CONDITIONS.--

          A. The state treasurer, the [several] county and municipal treasurers, the [treasurers] treasurer of any public or educational institution in this state and the treasurers of all irrigation districts and conservancy districts may deposit public funds in any [bank of the state of] federally insured bank, savings and loan association or credit union in New Mexico [insured by the federal deposit insurance corporation] up to the amount of the insurance [or in any savings and loan association whose deposits are insured by the federal savings and loan insurance corporation up to the amount of the insurance or in any credit union whose deposits are insured by the national credit union administration up to the amount of the insurance] without requiring the bank, savings and loan association or credit union to qualify as a public depository by giving security as required by the laws of New Mexico relating to public money [provided, however, that a deposit made in any credit union shall not exceed that amount insured by an agency of the United States].

          B. The [several] county and municipal treasurers and the treasurers of all irrigation districts and conservancy districts shall not make any deposits outside their respective political subdivisions.

          C. All other boards of control handling public funds in any manner whatever may deposit the public funds in any [banks] federally insured bank, saving and loan association or credit union in New Mexico [insured by the federal deposit insurance corporation] up to the amount of the insurance [or in any savings and loan association whose deposits are insured by the federal savings and loan insurance corporation up to the amount of the insurance or in any credit union whose deposits are insured by the national credit union administration up to the amount of such insurance] without requiring the bank, savings and loan association or credit union to qualify as a public depository by giving security as required by the laws of New Mexico relating to public money [provided, however, that a deposit made in any credit union shall not exceed that amount insured by an agency of the United States].

          D. In addition to the deposit authority in Subsections A, B and C of this section, and without regard to the limitations and requirements of those subsections and Sections 6-10-10, 6-10-24.1, 6-10-29, 6-10-31 and 6-10-36 NMSA 1978, the state treasurer, the county and municipal treasurers, the treasurer of any public or educational institution in this state and the treasurers of all irrigation districts and conservation districts and all other boards of control may deposit public funds in accordance with the following conditions:

                (1) the funds are deposited through a federally insured bank or savings and loan association in New Mexico that is selected by the depositing entity;

                (2) the selected bank or savings and loan association arranges for the deposit of the funds in certificates of deposit in one or more federally insured banks or savings and loan associations wherever located, for the account of the depositing entity;

                (3) the full amount of the principal and any accrued interest of each such certificate of deposit is insured by the federal deposit insurance corporation;

                (4) the selected bank or savings and loan association in New Mexico acts as custodian for the depositing entity with respect to such certificates of deposit issued for its account; and

                (5) at the same time that the depositing entity's funds are deposited and the certificates of deposit are issued, the selected bank or savings and loan association receives an amount of deposits from customers of other federally insured financial institutions wherever located equal to or greater than the amount of the funds initially deposited by the depositing entity through the selected bank or savings and loan association."

     Section 2. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2009.

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