A. Every association may invest in:
(1) obligations of, or guaranteed as to principal and interest by, the United States or this state;
(2) stock of a federal home loan bank of which it is eligible to be a member, and in any obligations or consolidated obligations of any federal home loan bank or banks;
(3) stock or obligations of the federal savings and loan insurance corporation;
(4) stock or obligations of a federal national mortgage association or any successor or successors thereto;
(5) demand, time or savings deposits with any bank or trust company, the deposits of which are insured by the federal deposit insurance corporation;
(6) stock or obligations of any corporation or agency of the United States or this state, or in deposits therewith to the extent that the corporation or agency assists in furthering or facilitating the association's purposes or power;
(7) insured savings accounts of any association;
(8) bonds, notes or other evidences of indebtedness which are a general obligation of any municipality, county, school district or other political subdivision of this state; and
(9) capital stock obligations or other securities of any service corporation organized under the laws of this state, if the entire capital stock of the corporation is available for purchase only by financial institutions of this state, federal savings and loan associations and national banks having their home offices in this state. No association may make any such investment in this state if its aggregate outstanding investment, determined as prescribed by the supervisor, would thereupon exceed one percent of its assets.
B. Securities owned by an association shall be carried on its books at no more than the actual cost thereof.
C. Nothing in the Savings and Loan Act denies to an association the right to invest its funds, operate a business, manage or deal in property or take any other action over whatever period of time may be reasonably necessary to avoid loss on a loan or investment made, or an obligation created, in good faith.
History: 1953 Comp., § 48-15-89, enacted by Laws 1967, ch. 61, § 45.
ANNOTATIONSCross references. — For definition of "service corporation", see 58-10-2I NMSA 1978.
For municipal housing bonds being legal investments, see 3-45-24 NMSA 1978.
For meaning of "supervisor", see 58-10-2J NMSA 1978.
State chartered banks and savings and loan associations are permitted to invest in mutual funds. 1987 Op. Att'y Gen. No. 87-04.
Mutual funds may not be pledged as collateral for deposits of public funds. 1987 Op. Att'y Gen. No. 87-04.
Am. Jur. 2d, A.L.R. and C.J.S. references. — 10 Am. Jur. 2d Banks § 296.
9 C.J.S. Banks and Banking § 606.