New Mexico Administrative Code
Title 2 - PUBLIC FINANCE
Chapter 79 - INDIVIDUAL DEVELOPMENT ACCOUNTS
Part 1 - GENERAL PROVISIONS
Section 2.79.1.7 - DEFINITIONS
Current through Register Vol. 35, No. 18, September 24, 2024
A. "Account owner" means the person in whose name an individual development account is originally established.
B. "Act" means the Individual Development Account Act, Sections 58-30-1 through 58-30-12 NMSA 1978.
C. "Allowable use" means monies expended from an individual development account for the account owner or the account owner's spouse or dependents for a use listed below:
D. "Authorized financial institution" means a financial institution authorized by the division to hold and manage individual development accounts and reserve accounts.
E. "Business" means a sole proprietorship, business venture or corporate structure in which the account owner will be an owner of greater than 50 percent.
F. "Director" means the director of the division.
G. "Division" means the local government division of the New Mexico department of finance and administration.
H. "Earned income" means wages from employment, payment in lieu of wages, disability payments, tribal distributions or earnings from self-employment or acquired from the provision of services, goods or property, production of goods, management of property or supervision of services.
I. "Education" means a job training or related educational program approved by the program administrator and the division.
J. "Eligible individual" means a person who meets the criteria for opening an individual development account.
K. "Emergency withdrawal" means a withdrawal by an account owner that:
L. "Financial institution" means a bank, bank and trust, savings bank, savings association or credit union authorized to be a trustee of individual retirement accounts as defined by federal law, the deposits of which are insured by the federal deposit insurance corporation or the national credit union administration.
M. "Financial literacy" means a basic understanding of budgets and savings accounts, credit and interest and how to use financial services including, but not limited to having a savings plan to reach the account owner's savings goal for an individual development account.
N. "First principal residence" means a principal residence to be acquired or constructed by an account owner who has no ownership interest in a principal residence during the three-year period ending on the date of acquisition of the principal residence.
O. "Individual development account" means an account established and maintained in an authorized financial institution by an eligible individual participating in an individual development account program pursuant to the act.
P. "Individual development account program" means a program established by a program administrator approved by the division to establish and administer individual development accounts and reserve accounts for eligible individuals and to provide financial training required by the division for account owners.
Q. "Major home improvement or repair" means a home improvement to a residential location that has been occupied continuously by the account owner for at least 12 months and is the principal residence of the account owner who is named as the mortgage holder. The home improvement must be one that increases the value of the residence or that will sustain the value of the home as approved by the program administrator. These improvements include, but are not limited to structural alterations and reconstruction, changes for improved functions and modernizations, elimination of health and safety hazards, and energy conservation improvements.
R. "Matching funds" means money deposited in a reserve account at a ratio of not less than one dollar ($1.00) of program administrator funds to one dollar ($1.00) of account owner deposits to match the withdrawals for allowable uses from an individual development account.
S. "Non-profit organization" means an instrumentality of the state or an organization described in Section 501(c)(3) of the Internal Revenue Code of 1986 (26 U.S.C. X 501(c)(3)) and exempt from taxation pursuant to Section 501(a) of that code.
T. "Post-secondary or vocational education" means a post-secondary university, community college, vocational-technical school, institution or specialized degree-granting college or school legally authorized to grant degrees or certificates.
U. "Program administrator" means only 501(c)(3) nonprofit organizations, tribes and instrumentalities of the state that are determined by the director to be eligible to offer an individual development account program.
V. "Reserve account" means an account established pursuant to the act in an authorized financial institution in which matching funds are maintained and available for payment for a predetermined allowable use following completion of all program requirements by the account owner.
W. "Savings plan" means a plan developed with an account owner and a program administrator defining savings goals and program requirements, including the allowable use of both the individual development account and the matching funds. The approved plan shall serve as the contract between the account owner and the program administrator.
X. "Tribe" means an Indian nation, tribe or pueblo located in whole or in part within New Mexico.