Bill > SB533

This bill amends existing New Mexico law to allow the severance tax permanent fund, a fund generated from taxes on natural resource extraction, to be invested in New Mexico credit unions, in addition to existing provisions for New Mexico financial institutions like banks and savings and loan associations. Specifically, the bill clarifies that at least five percent of the fund's cash holdings, but no more than twenty percent of its book value, can be deposited in these New Mexico financial institutions and credit unions, subject to terms set by the council. To be eligible, financial institutions and credit unions must meet certain loan and investment thresholds and adhere to specific collateral, interest rate, and maturity requirements established by the council, with provisions for rating institutions and protecting the fund. The bill also defines "credit union" as a New Mexico-chartered, member-owned financial cooperative and clarifies that deposits into credit unions must be insured by a U.S. agency and offer interest rates comparable to those offered to members.