2009 New Mexico Statutes
Chapter 21 - State and Private Education Institutions.
Article 21A - Educational Assistance
Section 21-21A-17 - Investment of funds.

21-21A-17. Investment of funds.

A.     Subject to any agreement with bondholders or noteholders, the corporation or foundation may invest money not required for immediate use, including proceeds from the sale of any bonds:   

(1)     in direct obligations of, or obligations whose principal and interest are guaranteed by, the United States;   

(2)     in direct obligations of, or participation certificates guaranteed by, the federal intermediate credit bank, federal land banks, federal national mortgage association, federal home loan banks, banks for cooperatives or the federal farm credit banks;   

(3)     in certificates of deposit of any bank, trust company or savings and loan association whose principal place of business is located in New Mexico and whose deposits are fully secured by a pledge of securities of any kind specified in this subsection;   

(4)     in contracts for the purchase and sale of obligations of the type specified in Paragraphs (1) and (2) of this subsection; and   

(5)     as otherwise provided in any trust indenture securing the issuance of the bonds.   

B.     All investments under this section may be sold at the prevailing market price.  Income from these investments shall be credited to the appropriate fund and may be used for administrative purposes.   

C.     Any nonprofit corporation formed pursuant to the provisions of the Educational Assistance Act [21-21A-1 NMSA 1978] is prohibited from investing in real property, other than real property for use primarily for occupancy by the foundation and the corporation.  The foundation and the corporation may also acquire real property through foreclosure or other means to enforce a debt but shall dispose of the property within a reasonable time and shall not retain it as an investment. Notwithstanding any other provision of law, any real property owned by the foundation or the corporation shall remain subject to the property tax.