Current through Register Vol. 35, No. 6, March 26, 2024
A. Any bank may,
subject to the provisions of this regulation, establish one or more LPOs
anywhere in the state of New Mexico.
B. Before a bank establishes and operates an
LPO in New Mexico, that bank shall obtain the approval of the director of the
financial institutions division. A request by a bank for such approval shall
state:
(1) the location of the LPO,
(2) the number of officers and other
personnel to be employed at each location; and
(3) the name and address of the bank at which
loans will be approved or denied and disbursements made.
C. The director of the financial institutions
division shall approve any request to establish an LPO unless the director
finds that the proposed operation of such LPO violates the provisions of this
regulation. If the director disapproves a request to establish an LPO in New
Mexico, the objections shall be stated in writing, and the bank shall be given
an opportunity to obviate such objections.
D. An LPO is limited to the following
activities:
(1) soliciting loans on behalf of
its bank, or a branch thereof by any means which discloses the nature and
limitations of the LPO;
(2)
providing information on loan rates and terms;
(3) interviewing and counseling loan
applicants; and
(4) aiding
customers in the completion of loan applications.
E. An LPO is prohibited from conducting the
following activities:
(1) signing or accepting
notes, security agreements or other instruments obligating the loan customer to
the bank;
(2) delivering loan
proceeds to the customer;
(3)
providing forms which enable the customer to open checking or savings accounts
by mail;
(4) counseling customers
regarding any bank services except loan origination services;
(5) advertising, stating or implying that the
LPO provides services other than loan origination services;
(6) providing information to bank customers
at the LPO concerning the status of their deposit accounts;
(7) charging, or providing for the charging
of, interest on loans running from a date prior to the time at which the
proceeds of the loan are actually disbursed to the customer by the LPO's bank
or a branch thereof;
(8) accepting
of loan payments; or
(9) operating
an off-premises unmanned terminal.
