Pub. 13 2016 Issue 1

O V E R A C E N T U R Y : B U I L D I N G B E T T E R B A N K S - H E L P I N G N E W M E X I C O R E A L I Z E D R E A M S 10 Any beneficiary can petition the court to review the proposed exercise of the decanting power. A decanting law provides flexibility by statutorily ex- panding discretion already granted to the trustee to permit the trustee to modify the trust either directly or by distributing its assets to another trust. While some trusts expressly grant the trustee or another person power to modify or decant the trust, a statutory provision can better describe the pow- er granted, impose limits on the pow- er to protect the beneficiaries and the settlor’s intent, protect against inad- vertent tax consequences, provide pro- cedural rules for exercising the power and provide for appropriate remedies. The bill also amends the Uniform Rule Against Perpetuities to revise the exemption for certain property held in trust. The rule generally in- validates certain unvested property interests if they do not vest within 21 years of the death of a person now liv- ing or within 90 years of the creation of the property interest. The revision provides no termination for unvested personal property held in trust, while allowing real property to be held in trust for 365 years after the later of the date upon which the trust acquired the property or the date the trust became irrevocable. Thus, New Mexico is con- sidered a “dynasty trust” state. HB 283: Unemployment Com- pensation (Larranaga). The bill allows for consideration of an employer’s historic contributions to the unemployment insurance fund when calculating payments to the fund. It also caps an employer’s rate increases from year to year. The pro- visions of the law must be approved by the U.S. Department of Labor. Legislation Not Enacted by the 2016 Legislature: • Right to work • Increase in minimum wage • Data Breach Notification Act • Usury • Estate or trust distribution tax deduction for non-resident trust beneficiaries • Cannabis legalization Congressional Update In March, several bankers represent- ing the NMBA attended the ABA Gov- ernment Relations Summit in Wash- ington D.C. The three day meeting provided an opportunity for bankers to meet with regulators and members of Congress, including Senator Rich- ard Shelby, Chairman of the Senate Banking Committee. The national focus in Washington is now on the Presidential and Congres- sional elections. It is easy to assume that little, if anything, is going to hap- pen in Congress before the election in November. In spite of an all-out effort, bankers were naturally disappointed that the significant Dodd-Frank re- forms lobbied in 2015 were not enact- ed as part of the omnibus bill at year- end. However, several measures were passed, including reduction in privacy notice paperwork; rural area exemp- tions from CFPB mortgage rules; ex- tension of the exam cycle for more fi- nancial institutions; a required study of the impact of BASEL III on mortgage servicing assets; and critical cyber se- curity information sharing legislation. While these are beneficial, there is more to be done to advocate for reg- ulatory burden relief. Permitting all portfolio loans to meet the QM stan- dards remains a top priority, as well as tailoring bank regulation to function rather than to size, and bringing fair- ness to the examination process. Re- forming the structure of the CFPB and changing the Dodd-Frank supervisory thresholds may also be on the table but will have to wait until 2017.   Highlights  continued from page 9 SECRET IS OUT! Today’s banks are searching everywhere for a technology partner that does business the same way they do—a commitment to innovation and a focus on service . Well, look no further than CSI. Our innovative solutions and customer-centric approach are the secret combination you’ve been waiting for. csiweb.com/Secret THE