Section 58-10-6 - Paid-in surplus and operating fund requirements for proposed permanent capital stock associations.

58-10-6. Paid-in surplus and operating fund requirements for proposed permanent capital stock associations.

A.     As a prerequisite to approval of an application for charter for an association with authority to issue permanent capital stock, the supervisor shall require that a paid-in operating fund, which may be used in lieu of earnings to pay organization and operating expenses, be paid to the association in cash in the following amounts, based on the total population of the area in which its principal office is to be located:   

  Population of Area Paid-in Surplus Paid-in Operating Fund       Below 10,000      $    50,000      $    25,000       10,001 to 25,000      50,000      50,000       25,001 to 50,000      50,000      50,000       50,001 to 100,000      75,000      75,000       100,001 to 200,000      75,000      75,000       200,001 to 350,000      100,000      75,000       Over 350,000      125,000      75,000   

B.     If the application is not approved, or if the proposed association does not proceed to do business, the stock subscriptions for permanent capital stock, paid-in surplus and paid-in operating fund shall be returned pro rata to the subscribers, less any lawful expenditures.   

C.     The provisions of this section are not retroactive with respect to associations established or approved by the director of the financial institutions division prior to the effective date of the Savings and Loan Act [58-10-1 NMSA 1978].