Section 58-11-16 - Out-of-state credit unions; approval to conduct business; director's duties and powers.
58-11-16. Out-of-state credit unions; approval to conduct business; director's duties and powers.
A. An out-of-state credit union organized pursuant to the laws of another state or territory of the United States may conduct business as a credit union in this state with the approval of the director.
B. Before granting approval for an out-of-state credit union to conduct business in New Mexico, the director shall determine that the out-of-state credit union:
(1) is organized pursuant to laws similar to those provided in the Credit Union Act [58-11-1 NMSA 1978];
(2) is financially solvent;
(3) is examined and supervised by a regulatory agency of the state or territory in which it is organized;
(4) meets share and deposit insurance requirements comparable to those provided in Section 58-11-48 NMSA 1978; and
(5) establishes a need to conduct business in this state to adequately serve its members in this state.
C. The director may:
(1) revoke the approval granted to an out-of-state credit union to conduct business in New Mexico if the director determines that:
(a) the credit union no longer meets the requirements as provided in Subsection B of this section;
(b) the credit union has violated a law of this state or a rule issued by the director;
(c) the credit union has engaged in a pattern of unsafe or unsound credit union practices;
(d) permitting the credit union to continue to conduct business in New Mexico is likely to have a substantial adverse impact on financial, economic or other interests of the residents of the state; or
(e) the credit union is prohibited from conducting business in the state or territory in which it is organized;
(2) cooperate with credit union regulators in other states or territories and share with those regulators pertinent information received pursuant to the provisions of the Credit Union Act;
(3) adopt rules for the periodic examination and investigation of the affairs of an out-of-state credit union conducting business in New Mexico. The costs associated with the examination or investigation shall be borne by the out-of-state credit union that is the subject of the examination or investigation; or
(4) enter into agreements with the regulators of out-of-state credit unions to identify laws and rules applicable to branches of out-of-state credit unions conducting business in New Mexico, or enter into agreements with credit union regulators in other states or territories to identify laws and rules applicable to credit unions organized in New Mexico pursuant to the Credit Union Act that are conducting business in out-of-state locations. The agreements provided for in this section may include, but are not limited to, agreements concerning corporate governance and operational matters, and the rules regarding the manner in which examination, supervision and application processes shall be coordinated with the regulators.
D. An out-of-state credit union conducting business in New Mexico shall:
(1) comply with the provisions of the Credit Union Act, rules issued pursuant to that act and all other applicable state laws; and
(2) designate and maintain an agent for service of process in New Mexico.