Powers of director.

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In addition to other powers conferred by the Trust Company Act, the director may:

A. examine the business and affairs of each trust company at least once each year and at such other times and to such extent as the director deems necessary or advisable. The expense of every examination shall be paid by the corporation examined, in such amount as the director certifies to be just and reasonable;

B. regulate the procedure and practice at hearings;

C. implement by order and rule the Trust Company Act; in making orders and rules to implement the Trust Company Act, the director shall act in the interest of promoting and maintaining a sound trust company system, the security of assets and trust accounts and the protection of persons utilizing trust services;

D. obtain restraining orders and injunctions to prevent violation of and enforce compliance with the Trust Company Act, and orders and rules promulgated pursuant to the Trust Company Act, the Uniform Probate Code [Chapter 45 NMSA 1978], the Uniform Prudent Investor Act [45-7-601 to 45-7-612 NMSA 1978] and the Uniform Trust Code [Chapter 46A NMSA 1978];

E. order any person or trust company to cease violating the Trust Company Act, orders and rules promulgated pursuant to the Trust Company Act, the Uniform Probate Code, the Uniform Prudent Investor Act or the Uniform Trust Code, or to cease engaging in breaches of trust. A copy of such orders shall be mailed to each director of the trust company involved;

F. suspend, after notice and hearing, any officer or director, or any employee of a nonprofit corporation, for fraud, embezzlement or failure to comply with the Trust Company Act or orders or rules promulgated pursuant to the Trust Company Act, the Uniform Probate Code, the Uniform Prudent Investor Act or the Uniform Trust Code; and

G. subpoena witnesses, compel their attendance, require the production of evidence, administer an oath and examine any person under oath in connection with any subject relating to a duty imposed upon or a power vested in the director.

History: 1953 Comp., § 48-24-9, enacted by Laws 1973, ch. 191, § 9; 1991, ch. 250, § 5; 2018, ch. 64, § 7.

ANNOTATIONS

The 2018 amendment, effective July 1, 2018, provided the director of the financial institutions division the authority to act when examination of a trust company reveals violations of the Trust Company Act, the Uniform Probate Code, the Uniform Prudent Investor Act or the Uniform Trust Code; in the introductory clause, after "the director", deleted "of the financial institutions division has power to" and added "may"; in Subsection C, after "implement by order and", deleted "regulation" and added "rule", after the next occurrence of "the", deleted "provisions of the", after "Trust Company", deleted "and" and added the remainder of the subsection; added a new subsection designation "D." and redesignated former Subsections D through F as Subsections E through G, respectively; in Subsection D, after "enforce compliance with the", added "Trust Company Act, and", after "orders and", deleted "regulations issued" and added "rules promulgated", after "pursuant to the", deleted "provisions of the", and after "Trust Company Act", deleted "In making orders and regulations to implement the Trust Company Act, the director shall act in the interest of promoting and maintaining a sound trust company system, the security of assets and trust accounts and the protection of persons utilizing trust services" and added "the Uniform Probate Code, the Uniform Prudent Investor Act and the Uniform Trust Code"; in Subsection E, after "cease violating", added "the Trust Company Act", after "orders and", deleted "regulations issued" and added "rules promulgated", after "pursuant to the", deleted "provisions of the", after "Trust Company Act,", added "the Uniform Probate Code, the Uniform Prudent Investor Act or the Uniform Trust Code"; and in Subsection F, after "failure to comply with", added "the Trust Company Act or", after "orders or", deleted "regulations issued" and added "rules promulgated", after "the Trust Company Act", deleted "or any provision of that act" and added "the Uniform Probate Code, the Uniform Prudent Investor Act or the Uniform Trust Code".

The 1991 amendment, effective June 14, 1991, substituted "director" for "commissioner" in the section heading and throughout the section; substituted "director of the financial institutions division has" for "commissioner shall have" in the introductory paragraph; inserted "or any employee of a nonprofit corporation" in Subsection E; and made minor stylistic changes in Subsections A and E.


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