2021 New Mexico Statutes
Chapter 58 - Financial Institutions and Regulations
Article 11 - Credit Unions
Section 58-11-10 - Formation of credit union.
A. Any seven or more residents of this state of legal age that share the common bond referred to in Section 58-11-21 NMSA 1978 may organize a credit union and become charter members thereof by complying with this section.
B. The organizers shall prepare, adopt and execute in triplicate articles of organization and agree to the terms thereof. The articles shall state:
(1) the credit union's name and the location of the proposed credit union's principal place of business;
(2) that the existence of the credit union shall be perpetual;
(3) the names and addresses of the organizers; and
(4) that each member shall subscribe to one share of the credit union.
C. The organizers shall prepare, adopt and execute in duplicate bylaws consistent with the Credit Union Act for the general governance of the credit union.
D. The organizers shall select at least five persons who are eligible for membership and who agree to become members and serve on the board of directors and at least three other persons who are eligible for membership and who agree to become members and serve on the supervisory committee. The persons selected to serve on the board of directors and supervisory committee shall execute an agreement to serve in these capacities until the first annual meeting or until the election of their respective successors, whichever is later.
E. The organizers shall forward the triplicate articles of organization, the duplicate bylaws and the agreements to serve to the director who shall act upon the application within sixty days. The director shall issue a certificate of approval if the articles and bylaws are in conformity with applicable provisions of the Credit Union Act and the director is satisfied that:
(1) the characteristics of the common bond set forth in the proposed bylaws are favorable to the economic viability of the proposed credit union;
(2) the reputation and character of the initial board of directors and supervisory committee provide assurance that the credit union's affairs will be properly administered; and
(3) the share and deposit insurance requirements of Section 58-11-48 NMSA 1978 will be met.
F. The following provisions apply to issuance and denial of certificate:
(1) if the director issues a certificate of approval, the director shall return a copy of the bylaws to the organizers and, upon payment of the required fee, file the triplicate originals of the articles of organization with the secretary of state; and
(2) if the director denies a certificate of approval, the director shall notify the organizers and set forth reasons for the denial. The organizers may appeal the director's decision to the court of appeals within thirty days after receipt of the notice of denial.
G. The organizers shall not transact any credit union business until a certificate of approval has been received and shall accept no payments on shares or deposit until insurance of accounts has been obtained as provided by Section 58-11-48 NMSA 1978.
H. Any credit union, the articles of organization of which have been approved by the director, shall commence business within six months after satisfactory proof has been filed with the director showing that insurance of share and deposit accounts has been obtained. Upon showing of good cause for failure to commence business within this time, the director may grant a reasonable extension to overcome the reason for delay. Failure to commence business as required in this section or failure to obtain insurance of accounts within one year from the date of approval of the articles of organization constitutes grounds for forfeiture of the credit union's articles of organization.
History: Laws 1987, ch. 311, § 10; 1997, ch. 195, § 6; 2013, ch. 75, § 18.
ANNOTATIONSRepeals and reenactments. — Laws 1987, Chapter 311 repealed 58-11-10 NMSA 1978, as amended by Laws 1975, ch. 344, § 10, relating to meetings and fiscal year, effective June 19, 1987, and enacted a new section.
Repeals. — 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 2013 amendment, effective July 1, 2013, required the director to file the articles of organization with the secretary of state; and in Paragraph (1) of Subsection F, after "articles of organization with the", deleted "state corporation commission" and added "secretary of state".
The 1997 amendment, effective July 1, 1997, substituted "Section 58-11-21 NMSA 1978" for "Section 21 of the Credit Union Regulatory Act" in Subsection A, deleted "the number of shares subscribed to by each" at the end of Paragraph B(3), added Paragraph B(4), substituted "Credit Union Act" for "Credit Union Regulatory Act" in Subsection C and in the second sentence of Subsection E, substituted "Section 58-11-48 NMSA 1978" for "Section 48 of the Credit Union Regulatory Act" in Paragraph E(3) and Subsection G, substituted "provisions" for "providers" in the introductory paragraph of Subsection F, substituted "organizers" for "incorporators" in the second sentence of Paragraph F(2), and made a minor stylistic change at the end of Paragraph B(2).
Am. Jur. 2d, A.L.R. and C.J.S. references. — 12 C.J.S. Building and Loan Associations § 23.
