AI-assisted research summary: A consumer credit bank may be organized, owned, and controlled only with the director’s approval, and it must meet several operating and capitalization rules.
58-1A-3. Organization of consumer credit bank. With the approval of the director, a domestic bank, foreign bank, international bank or holding company may organize, own and control a consumer credit bank in accordance with the following terms and conditions: A. in connection with the application to organize or to own and control a consumer credit bank, the applicant shall pay to the director a filing fee of six thousand dollars ($6,000) and a nonrefundable investigation fee of one thousand dollars ($1,000); B. the shares of a consumer credit bank shall be owned solely by a domestic bank, foreign bank, international bank or holding company; C. a consumer credit bank shall accept deposits only at a single location in this state; D. a consumer credit bank shall maintain capital stock and paid-in surplus of not less than two million dollars ($2,000,000); E. a consumer credit bank may engage in the business of soliciting, processing and making loans pursuant to credit card accounts and conducting other necessarily incidental activities, including the taking of a security interest in any property to secure a loan; F. a consumer credit bank may accept deposits only of one hundred thousand dollars ($100,000) or more and only from affiliates of the consumer credit bank or from persons having their principal place of business or residence outside New Mexico; but the limitation provided pursuant to this subsection shall not apply to deposits made for the purpose of security taken pursuant to Subsection E of this section; G. a consumer credit bank shall, prior to commencing business, obtain and thereafter maintain insurance of its deposits by the federal deposit insurance corporation; H. a consumer credit bank may not engage in the business of making commercial loans, but may issue credit cards and create credit card accounts for commercial customers; I. a consumer credit bank shall provide the following services in this state: (1) the initial distribution of credit cards or other devices, or both, designed and effective to access credit card accounts; (2) the preparation of periodic statements of amounts due under credit card accounts; and (3) the maintenance of financial records reflecting the status of credit card accounts from time to time; and J. the affairs of a consumer credit bank shall be managed by a board of directors that shall exercise the consumer credit bank's powers and be responsible for the discharge of the consumer credit bank's duties. The number of directors, which shall not be fewer than three or more than twenty-five, shall be fixed by the bylaws. At least three-fourths of the directors shall be United States citizens. History: Laws 1993, ch. 11, § 3; 1995, ch. 33, § 2; 1997, ch. 23, § 9.