SENATE JOINT MEMORIAL 50

46th legislature - STATE OF NEW MEXICO - second session, 2004

INTRODUCED BY

Manny M. Aragon

A JOINT MEMORIAL

ENCOURAGING NEW MEXICO TO ESTABLISH ALTERNATIVE FINANCIAL SELF-EMPOWERMENT INSTITUTIONS FOR PERSONS OF LOW INCOME.

     WHEREAS, New Mexico has worked for many years to assist persons of low income to obtain access to private loan programs; and

     WHEREAS, the gap between conventional banking institutions and the small loan industry still remains wide; and

     WHEREAS, there are currently provisions in federal and state law that allow community development corporations within pockets of poverty to empower those they serve by developing community credit unions; and

     WHEREAS, credit unions for persons of low income may include services targeted at assisting persons of low income, establishing good credit, repairing bad credit and providing general banking services to persons who have no access to conventional lending institutions; and

     WHEREAS, without access to such services, many people have no option other than to use the services of quasi-financial services establishments that provide few, if any, specialized credit programs or banking services and charge high market interest rates;

     NOW, THEREFORE, BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO that New Mexico be encouraged to support community development corporations to establish alternative financial self-empowerment institutions that encompass federally recognized "pockets of poverty" designations; and

     BE IT FURTHER RESOLVED that copies of this memorial be transmitted to the governor and the director of the financial institutions division of the regulation and licensing department.

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