New Mexico Statutes 58-10-38. Participation with others in real estate loans
A. Subject to the requirements of any regulations of the supervisor, every association may:
Terms Used In New Mexico Statutes 58-10-38
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Recourse: An arrangement in which a bank retains, in form or in substance, any credit risk directly or indirectly associated with an asset it has sold (in accordance with generally accepted accounting principles) that exceeds a pro rata share of the bank's claim on the asset. If a bank has no claim on an asset it has sold, then the retention of any credit risk is recourse. Source: FDIC
(1) participate with other lenders in real estate loans of any type that the association could originate;
(2) sell, but only without recourse, any real estate loan it holds or any participating interest therein; and
(3) service any real estate loans sold by it.
B. No association shall participate in the making of a loan pursuant to the approval granted in this section or purchase a participation in a loan beyond the association’s regular lending area pursuant to this approval if the resulting aggregate amount of the institution’s investments made pursuant to this approval would exceed forty percent of the association’s assets. As used in this subsection, “loan” and “investments” do not include or apply to any loan as to which the institution has, with respect to such loan or its participation therein, the benefit of any insurance or guaranty or commitment for insurance or guaranty under any law of the United States.