HOUSE BILL 68

47th legislature - STATE OF NEW MEXICO - first session, 2005

INTRODUCED BY

Patricia A. Lundstrom

AN ACT

RELATING TO BANKING; REGULATING FEES ASSESSED ON ACCOUNTS OF CERTAIN MINORS.

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

     Section 1. Section 58-1-5 NMSA 1978 (being Laws 1963, Chapter 305, Section 6) is amended to read:

     "58-1-5. DEPOSIT OF MINOR--SCHOOL OR INSTITUTIONAL DEPOSITS--LIMIT ON FEES.--

          A. A bank may operate a deposit account in the name of a minor or in the name of two or more persons, one or more of whom are minors, with the same effect upon its liability as if [such] the minors were of full age.

          B. Subject to such regulations as the [commissioner] director may prescribe for the protection of depositors, a bank may contract with the proper authorities of any elementary or secondary school or of any institution caring for minors for the participation by the bank in any school or institutional thrift or savings plan, and it may accept deposits at such a school or institution, either by its own collector or by any representative of the school or institution who becomes the agent of the bank for [such] that purpose.

          C. A bank shall not assess a service charge in excess of twelve dollars ($12.00) per year on a savings account in the name of a person who is under the age of fourteen."

     Section 2. Section 58-10-59 NMSA 1978 (being Laws 1967, Chapter 61, Section 57) is amended to read:

     "58-10-59. SAVINGS ACCOUNTS OF MINORS--LIMIT ON FEES.--          A. Any association operating under the Savings and Loan Act and any federal savings and loan association doing business in this state may accept a savings [accounts] account in the name of a minor or in the name of two or more persons, one or more of whom are minors, and pay the account to the order of the minor [or minors] as if [they] the minor were of full age.

          B. An association or federal association shall not assess a service charge in excess of twelve dollars ($12.00) per year on a savings account in the name of a person who is under the age of fourteen."

     Section 3. Section 58-11-42 NMSA 1978 (being Laws 1987, Chapter 311, Section 42) is amended to read:

     "58-11-42. ACCOUNTS OF MINORS--LIMITATION OF FEES.--           A. Payments on share accounts and deposit accounts may be received from a minor who may withdraw funds from those accounts, including the dividends and interest thereon. Payments on share accounts and deposit accounts by a minor and withdrawal by the minor shall be valid in all respects. For such purposes, a minor is deemed of full age.

          B. A credit union shall not assess a service charge in excess of twelve dollars ($12.00) per year on a savings account in the name of a person who is under the age of fourteen."

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