N.M. Admin. Code § 12.16.60.8

Current through Register Vol. 35, No. 21, November 5, 2024

Section 12.16.60.8 - OPERATING SUBSIDIARIES

A. New Mexico state banks may engage in activities which are part of or incidental to the business of banking by means of an operating subsidiary corporation. In order to qualify as an operating subsidiary, the parent bank must own at least eighty percent of the voting stock of the corporation.

B. A state bank which intends to acquire, establish or perform new activities in an operating subsidiary shall apply for the prior approval of the director of the financial institutions division. The application shall include a strategic business plan for the proposed organization or activity, with form and content acceptable to the director. If the application is approved the director may impose one or more legal or supervisory conditions in connection with the approval.

C. All provisions of banking laws and regulations applicable to the operations of the parent bank shall be equally applicable to the operations of its operating subsidiaries.

D. Pertinent book figures of the parent bank and its operating subsidiaries shall be consolidated for the purpose of applying applicable statutory limitations.

E. Each operating subsidiary shall be subject to examination and supervision by the director of the financial institutions division in the same manner and to the same extent as the parent bank, and shall be assessed a fee determined by the director to cover the cost of examination. If, upon examination, the director finds that the subsidiary is created or operated in violation of law or regulation or that the manner of operation is unsafe or unsound, the bank will be directed to take appropriate remedial action, which may include disposing of all or part of the subsidiary.

N.M. Admin. Code § 12.16.60.8

11/15/96; Recompiled 10/15/01