N.M. Admin. Code § 2.60.28.8

Current through Register Vol. 35, No. 23, December 10, 2024

Section 2.60.28.8 - GUIDELINES FOR ACCEPTABLE COLLATERAL UNDER SECTION 7-27-5.2(B)

[repealed] The following associated items shall be delivered to the state's custodian to qualify a promissory note secured by a first mortgage as acceptable collateral for deposits of the severance tax permanent fund made pursuant to Section 7-25-5.2(B) NMSA 1978 [repealed]:

A. original promissory note, evidencing first lien;

B. original mortgage;

C. copy of title insurance policy;

D. copy of hazard insurance policy current at time collateral is pledged

E. insurance (by F.H.A. or V.A. or a private mortgage insurance company authorized to do business in the state of New Mexico) against default by a mortgagor whose outstanding principal balance is in excess of 80 percent of the appraised valuation or sales price

F. endorsement by pledg or financial institution of the promissory note to the state;

G. properly executed and recorded assignment of mortgage to the state;

H. copy of the original, signed appraisal associated with each endorsed promissory note;

I. In addition, substitutions shall be required for any mortgage that becomes 60 days delinquent.

N.M. Admin. Code § 2.60.28.8

Recompiled 10/1/01