Corporate name; exclusive use.

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A. The name of every association incorporated after the effective date of the Savings and Loan Act shall include either the words "savings association," "savings and loan association" or "building and loan association." These words shall be preceded by an appropriate descriptive word or words approved by the supervisor. An ordinal number shall not be used as a single descriptive word preceding the required words unless the required words are followed by the name of the municipality or county in which the association has its principal office.

B. No certificate of incorporation of a proposed association having the same name as any other association authorized to do business in this state under the Savings and Loan Act, or a name so nearly resembling it as to be calculated to deceive, shall be issued by the supervisor except to an association formed by the reincorporation, reorganization or consolidation of other associations, or upon the sale of the property or franchise of an association.

C. No person, firm, company, fiduciary, partnership or corporation, either domestic or foreign, unless authorized to do business in this state under the provisions of the Savings and Loan Act, shall do business under any name or title which indicates or reasonably implies that the business is the character or kind of business carried on or transacted by an association, or which is calculated to lead any person to believe that the business is that of an association. Upon application by the supervisor or by any association, the district court shall enjoin any such entity from violating or continuing to violate any provision of this section.

History: 1953 Comp., § 48-15-60, enacted by Laws 1967, ch. 61, § 16.

ANNOTATIONS

Cross references. — For meaning of "supervisor", see 58-10-2J NMSA 1978.

Effective dates. — Laws 1967, ch. 61, § 101 made the Savings and Loan Act effective July 1, 1967.

Subsection B impliedly authorizes sale of branch offices without hearing. — The legislature, by use of the words "sale of the property or franchise of an association," authorized, by implication, the sale or transfer of a branch office between savings and loan associations without holding a hearing prior to issuance of banking department's (now financial institutions division of the commerce and industry department) order approving such sale or transfer. Equitable Bldg. & Loan Ass'n v. Davidson, 1973-NMSC-100, 85 N.M. 621, 515 P.2d 140.

Am. Jur. 2d, A.L.R. and C.J.S. references. — 10 Am. Jur. 2d Banks §§ 7, 25.

9 C.J.S. Banks and Banking § 42; 12 C.J.S. Building and Loan Associations § 6.


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