Current through Register Vol. 35, No. 6, March 26, 2024
A. The following
procedures and forms should be used in establishing and operating pooled
interest-bearing escrow or transaction accounts.
(1) Form 5828-1, instructions for financial
institutions regarding processing Land Title Trust Fund Act and Low Income
Housing Trust Act accounts.
(2)
Form 5828-2, account enrollment and agreement between company and financial
institution.
(3) Form 5828-3,
financial institution report of interest remittance.
B. Form 5828-1, instructions for financial
institutions regarding processing Land Title Trust Fund and Low Income Housing
Trust Act accounts.
(1) Pursuant to Section
58-28-4
A NMSA 1978 every title company that maintains one or more trust accounts or
escrow accounts into which customer funds are deposited for use in the
purchase, sale or financing of real property located in New Mexico, may
maintain one or more pooled interest-bearing transaction accounts and may
deposit the customer funds specified in Section
58-28-4
A NMSA 1978 into those accounts. Pursuant to Section
58-18B-5
A NMSA 1978 every real estate broker who maintains a trust or escrow account as
required pursuant to the provisions of Subsection H of Section
61-29-12
NMSA 1978 may maintain a pooled interest-bearing escrow account and may deposit
the customer funds specified in Section
58-18B-5
A NMSA 1978 into that account. Pursuant to Section
58-18B-5
B NMSA 1978 every escrow closing agent that maintains a trust account or escrow
account pursuant to the provisions of Section
58-22-20
NMSA 1978 shall maintain a pooled interest-bearing escrow account and shall
deposit the customer funds specified in Section
58-18-5 B
NMSA 1978 into that account. The interest earned from these programs is
forwarded to the land title trust fund (LTTF). The account agreement between
the depositor and the financial institution shall expressly provide for the
required remittance of interest.
(2) State-chartered depository institutions
that maintain trust or escrow accounts for customers may establish and make
available pooled interest-bearing transaction accounts.
(3) The interest earned from these programs
is forwarded to the land title trust fund (LTTF). The New Mexico mortgage
finance authority is trustee for the LTTF. When the account is opened, the name
of the account should be listed on the financial institution's internal records
as New Mexico mortgage finance authority, LTTF of (name of company) and the
taxpayer ID number (TIN) should be that of the New Mexico mortgage finance
authority. Since the internal revenue service matches the TIN with the payee,
and they do this by checking to see if the first four letters of the payee's
name matches the TIN, your records should reflect the New Mexico mortgage
finance authority, LTTF as payee for reporting purposes. The account agreement
between the depositor and the financial institution shall expressly provide for
the required remittance of interest.
(4) Remittances. Interest accrued on LTTF
accounts should be remitted monthly or quarterly from the financial institution
in which the account is maintained to the New Mexico mortgage finance
authority, trustee, LTTF, either directly or through the company. Any charges
the financial institution assesses against the account shall be deducted from
the accrued interest of the pooled interest-bearing transaction or escrow
account. The principal contained in these accounts are client monies and cannot
be used to pay financial institution charges. If the account does not earn
enough interest to cover the service charges, it is at the discretion of the
bank and company to determine how the fees should be handled. The net amount of
the accrued interest should be mailed or wired to the New Mexico mortgage
finance authority LTTF at: State Treasurer's Office, NEA Building, Attn: Local
Government Investment Pool. P.O. Box 608, Account #7516 (LTTF Account), Santa
Fe, NM 87504; or as otherwise directed by the state treasurer's office. Wire
instructions: First Security Bank, ABA #107000275, Credit: NM State Treasurer
LGIP Acct. # 601-59406-76, on behalf of: NMMFA LTTF STO #7516.
(5) Financial institutions are responsible
for transmitting interest income information to the New Mexico mortgage finance
authority and to the depositor. The financial institution should complete form
5828-3, financial institution report of interest remittance. The report
includes the name of the depositor for whom the remittance is sent, the account
number, the rate and amount of accrued interest, the amount deducted for any
fees or service charge, the earning period and the ending account balance. Form
5828-3 should be sent to the New Mexico mortgage finance authority at: New
Mexico Mortgage Finance Authority, Trustee, Land Title Trust Fund 344 Fourth
Street SW, Albuquerque, NM 87102.
(6) IRS reports. The New Mexico mortgage
finance authority LTTF is a backup withholding exempt recipient. The financial
institution does not need to send out a request for TIN, IRS form W-9. However,
if your data processing procedures require the receipt of a W-9 form, it should
list the New Mexico mortgage finance authority LTTF TIN, and the New Mexico
mortgage finance authority will sign it. Similarly, the New Mexico mortgage
finance authority LTTF is a governmental organization exempt from withholding
and reporting, so you do not need to issue form 1099 on New Mexico mortgage
finance authority LTTF accounts. If you must prepare form 1099, please send the
form 1099 to the New Mexico mortgage finance authority, LTTF, to avoid
confusion for the title companies.
C. Form 5828-2, ACCOUNT ENROLLMENT AND
AGREEMENT BETWEEN COMPANY AND FINANCIAL INSTITUTION
To: _________________________________
Name of financial institution
__________________________________
Location of financial institution
I/We ______________________________
Name of company
(hereinafter referred to as "depositor") are participating in
the land title trust fund (LTTF) program pursuant to the Land Title Trust Fund
Act [58-28-1 to
58-28-8
NMSA 1978] and Low Income Housing Trust Act [58-18B-1 to
58-18B-11
NMSA 1978]. Depositor hereby acknowledges that it retains sole responsibility
for determining deposits qualifying for deposit to this account. Depositor
hereby instructs you to establish a LTTF negotiable order of withdrawal (NOW)
account, sweep account or other interest bearing account in its name as
follows: New Mexico mortgage finance authority, LTTF of (company).
The depositor's New Mexico mortgage finance authority, LTTF
account is to be established and governed by the financial institution's
customary rules and procedures governing NOW accounts, sweep accounts or other
interest bearing accounts.
The New Mexico mortgage finance authority, LTTF is a
tax-exempt governmental unit. The tax identification number is 85-0252748. No
withholding is required. No Form 1099 is required.
Any service charge should be debited to the account in
accordance with your normal practice. However, the charges must be deducted
from accrued interest only. If the account does not earn enough interest to
cover the service charges, it is at the discretion of the bank and company to
determine how the fees should be handled.
Please remit all accrued interest (net of service charges, if
any) AT LEAST QUARTERLY, no later than the tenth day of the month, directly to
the New Mexico mortgage finance authority LTTF account at the state treasurer's
office.
Accrued interest can be remitted by check, draft or similar
instrument via U.S. mail or by wire transfer to:
State Treasurer New Mexico Mortgage Finance Authority
NEA Building Account #7516 (LTTF Account)
Attention: Local Government Investment Pool
P.O. Box 608
Santa Fe, NM 87504
or as directed by the state treasurer's office.
Wire instructions:
First Security Bank
ABA #107000275
Credit: NM State Treasurer LGIP
Acct. # 601-59406-76
On behalf of: NMMFA LTTF STO #7516.
Also submit the financial institution report of interest
remittance directly to:
New Mexico Mortgage Finance Authority, Trustee
Land Title Trust Fund,
344 Fourth Street SW
Albuquerque, NM 87102.
___________________________ __________________
Depositor/account name Acknowledgment by
Financial Institution
Representative/Date
_________________________
Depositor address
_________________________ ____________________
Telephone number Depositor signature/date
Please send a copy of this completed form to the depositor
and the New Mexico mortgage finance authority.
D. Form 5828-3, Financial Institution Report
of Interest Remittance For Land Title Trust Accounts
To: Land title trust fund
From: __________________________________________
Name of financial institution and contact person
__________________________________________
Address
__________________________________________
Telephone number
Account holder Account number Interest rate Interest earned
Earning period Ending
Account
Balance
Total interest $ _____
Less service charge $ _____
Net remittance $ _____
Name of person remitting _______________
Send this report to:
Land Title Trust Fund
New Mexico Mortgage Finance Authority, trustee
344 Fourth Street SW
Albuquerque, NM 87102
Also send a copy of this report to the account
depositor.
