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2013 New Mexico Attorney General Reports and Opinions 1 (2013)

handle is hein.sag/sagnm0091 and id is 1 raw text is: Attorney General of New Mexico

GARY K. KING
Attorney General

April 18, 2013

ALBERT J. LAMA
Chief Deputy Attorney General

OPINION
OF
GARY K. KING
Attorney General

Opinion No. 13-01

BY:   Zachary Shandler
Assistant Attorney General
TO:   The Honorable Hector Balderas
New Mexico State Auditor
2540 Camino Edward Ortiz, Ste. #A
Santa Fe, NM 87507
OUESTION:
Is the Town of Cochiti Lake (Town) subject to certain provisions of the state's public money
statutes, specifically NMSA 1978, Sections 6-10-10, 6-10-36 and 6-10-44?
CONCLUSION:
Absent the promulgation of a rule by the New Mexico Department of Finance and
Administration (Department or DFA), the Town is not subject to the limitations found in
NMSA 1978, Sections 6-10-10, 6-10-36 and 6-10-44.
BACKGROUND:
NMSA 1978, Sections 6-10-10, 6-10-36 and 6-10-44 generally limit investments of a local
public body to bank deposits, obligations of the United States and New Mexico local
governments, and obligations collateralized or backed by the U.S. government. Based on the
information available to us at this time, we understand that the Town has been investing some of
its funds in other instruments, and since the Department views the Town as a local public body,
those investments have resulted in a negative finding on the Town's annual audit.

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