N.M. Stat. § 72-16-73
Application of proceeds.
All moneys received from the issuance of any securities herein authorized shall be
used solely for the purpose (or purposes) for which issued and the cost of any project
thereby delineated. Any accrued interest and any premium shall be applied to the
payment of the interest on or the principal of the securities, or both interest and
principal, or shall be deposited in a reserve therefor, as the board may determine.