New Mexico Administrative Code
Title 12 - TRADE, COMMERCE AND BANKING
Chapter 16 - BANKING
Part 41 - INVESTMENTS IN COMMUNITY DEVELOPMENT
Section 12.16.41.8 - INVESTMENTS IN COMMUNITY DEVELOPMENT
Current through Register Vol. 35, No. 18, September 24, 2024
A. Occasionally banks are asked to contribute to community development corporations, business ventures or community development projects wherein the bank will receive an equity interest in or evidence of debt which may have value in the future, but which is clearly not a bankable asset by ordinary standards. Such "investment" may be made and charged off as a contribution. If the bank wishes to carry the investment as an asset, the examiners will treat it as permissible under this regulation; provided that the following conditions are met:
B. A bank must obtain prior written approval of the director of the financial institutions division for investments made under this regulation. The director may use comptroller of the currency banking circular BC-185 as guidance for application procedures and evaluation of potential investments.