2018 New Mexico Statutes
Chapter 58 - Financial Institutions and Regulations
Article 11 - Credit Unions
Section 58-11-2 - Definitions.

As used in the Credit Union Act [58-11-1 NMSA 1978]:

A. "board member" means a member of the board of directors of a credit union;

B. "capital" means share accounts, membership shares, reserves and undivided earnings;

C. "credit union" means a cooperative, nonprofit, financial institution organized under or subject to the Credit Union Act for the purposes of encouraging thrift among its members, creating a source of credit at fair and reasonable rates of interest and providing an opportunity for its members to use and control their own money on a democratic basis in order to improve their economic and social condition;

D. "deposit account" means a balance held by a credit union and established by a person in accordance with standards specified by the credit union, including balances designated as deposits, deposit certificates, checking accounts or other names. Ownership of a deposit account does not confer membership or voting rights and does not represent an interest in the capital of the credit union upon dissolution or conversion to another type of institution;

E. "director" means the director of the financial institutions division of the regulation and licensing department;

F. "division" means the financial institutions division of the regulation and licensing department;

G. "executive officer" means any person who is responsible for the management of the credit union as provided in the bylaws of the credit union and includes the chief executive officer, the president, a vice president, the credit union manager, an assistant manager or a person who is assigned and performs the management duties appropriate to those offices;

H. "governmental unit" means any board, agency, department, authority, instrumentality or other unit or organization of the United States, this state or any political subdivision thereof;

I. "immediate family" means those persons related by blood or marriage as well as stepchildren, foster children and adopted children or persons who live in the same residence and maintain a single economic unit;

J. "insolvent" means the condition that results when the cash value of assets is less than the liabilities and members' share and deposit accounts;

K. "insuring organization" means the national credit union administration or any other insurer that has been approved by the director to provide aid and financial assistance to credit unions that are in the process of liquidation or are incurring financial difficulty, in order that the share and deposit accounts in credit unions shall be protected or guaranteed against loss without limit or up to a specified level for each account;

L. "membership share" means a balance held by a credit union and established by a member in accordance with standards specified by the credit union. Ownership of a membership share represents an interest in the capital of the credit union upon dissolution or conversion to another type of institution;

M. "organization" means any corporation, association, partnership, society, firm, syndicate, trust or other legal entity;

N. "person" means any individual, organization or governmental unit;

O. "primary share account" means a share account that a credit union's bylaws designate as conferring voting rights;

P. "risk assets" means all assets of the credit union except those exempted by the director by regulation;

Q. "service facility" means any building, machine or device, whether mechanical, electronic or otherwise, that is operated or maintained, in whole or in part, to provide services to members; and

R. "share account" means a balance held by a credit union and established by a member in accordance with standards specified by the credit union, including balances designated as shares, share certificates, share draft accounts or other similar names. Ownership of a share account confers membership and represents an interest in the capital of the credit union upon dissolution or conversion to another type of institution.

History: Laws 1987, ch. 311, § 2; 1991, ch. 51, § 1; 1997, ch. 195, § 2; 2003, ch. 28, § 1.

Repeals and reenactments. — Laws 1987, Chapter 311 repealed former 58-11-2 NMSA 1978, as enacted by Laws 1975, ch. 344, § 1, relating to short title of the Credit Union Act, effective June 19, 1987, and enacted a new 58-11-2 NMSA 1978.

Cross references. — For Section 208(a)(1) of the Federal Credit Union Act referred to in Subsection O(14), see 12 U.S.C. § 1788(a)(1).

The 2003 amendment, effective June 20, 2003, in Subsection I, inserted "stepchildren," preceding "foster" and inserted "children" following "foster" near the middle and added "or persons who live in the same residence and maintain a single economic unit" at the end; deleted the second sentence in Subsection L which read "Each member may own only one membership share."; added present Subsection O and redesignated the subsequent subsections accordingly; and deleted "and voting rights" following "share account confers membership" near the middle of the second sentence of Subsection R.

The 1997 amendment, effective July 1, 1997, substituted "Credit Union Act" for "Credit Union Regulatory Act" in the introductory paragraph and in Subsection C, substituted "who is responsible for the management" for "other than a member of the board of directors who performs duties in the management" in Subsection G, rewrote Subsection O, added Subsection P, redesignated former Subsection P as Subsection Q, and made minor stylistic changes throughout the section.

Laws 1997, ch. 195, § 42 repealed Laws 1987, ch. 311, § 68, which had provided for the repeal of this section on July 1, 1997.

The 1991 amendment, effective July 1, 1991, in Subsection B, substituted "share" for "shared"; added Subsection G and redesignated the subsequent subsections accordingly; and, in Subsection O, substituted "students" for "student" in Paragraph (5) and added "less depreciation" in Paragraphs (10) and (11).