New Mexico Administrative Code
Title 12 - TRADE, COMMERCE AND BANKING
Chapter 20 - SAVINGS AND LOAN ASSOCIATIONS
Part 35 - REAL ESTATE AND OTHER LOANS
Section 12.20.35.13 - COMMERCIAL REAL ESTATE LOANS

A. Loans (including construction loans) secured by first liens on other improved real estate, as defined in Section 541.17 (a) and (c) of the regulation for the federal savings and loan system, shall-not exceed 90 percent of the value of the security property and shall be repayable within 30 years, except that construction loans and nonamortized loans shall be repayable within five years.* Interest shall be payable at least semiannually except to the extent that the loan contract provides for deferral and capitalization of interest: provided, that the ratio of the loan balance to the current appraised value of the security property may not at any time during the loan term exceed 90 percent as a result of deferral and capitalization of interest.

B. An association's aggregate investment under this section shall not exceed 20 percent of assets.

C. A loan is considered to be secured by a first lien if it is (a) secured by an interest in real estate in fee or in a leasehold or sublease hold extending or renewable automatically or at the option of the holder or the association for 5 years after maturity of the loan, if, in the event of default, the real estate could be used to satisfy the obligation with the same priority as a first mortgage or first deed of trust in the jurisdiction where the real estate is located; or (b) secured by an assignment of such loan(s).