New Mexico Administrative Code
Title 12 - TRADE, COMMERCE AND BANKING
Chapter 16 - BANKING
Part 22 - CAPITAL AND SURPLUS
Section 12.16.22.8 - CAPITAL AND SURPLUS

Universal Citation: 12 NM Admin Code 12.16.22.8

Current through Register Vol. 35, No. 18, September 24, 2024

A. For the purpose of determining statutory limits that are based upon the bank's "capital and surplus" or equivalent terms the calculations shall be done using the bank's tier 1 and tier 2 capital plus the balance of the bank's allowance for loan and lease losses not included in the bank's tier 2 capital, as these components are prescribed by federal regulations, plus subordinated debt.

B. Statutory limits shall be calculated as of the most recent of the following dates:

(1) the date of the most recently required federal financial institution examination council report of condition and income; or

(2) when there is a change in the bank's capital category for the purposes of federal prompt corrective action regulations. The bank may also choose to calculate a statutory limit concurrently with a transaction.

C. The provisions of this sub-part [now part] apply to transactions originating after the effective date. Transactions originating prior to the effective date, including renewals of credit originated prior to the effective date, shall be governed by the applicable limit at the time of origination.

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