WHEREAS, pursuant to federal law the Federal Trade Commission (the “FTC”) adopted Identity Theft Rules requiring the creation of certain policies relating to the use of consumer reports, address discrepancy and the detection, prevention and mitigation of identity theft;

WHEREAS, the FTC regulations, adopted as 16 CFR § 681.2, require creditors, as defined by 15 U.S.C. § 1681a(r)(5), to adopt red flag policies to prevent and mitigate identity theft with respect to covered accounts; and defines a creditor as a person that extends, renews or continues credit, and defines ‘credit’ in part as the right to purchase property or services and defer payment therefore;

WHEREAS, the FTC regulations include utility companies in the definition of creditor;

WHEREAS, the Village of Capitan (the “Village”) is a creditor with respect to 16 CFR 681.2 by virtue of providing utility services or by otherwise accepting payment for municipal services in arrears;

WHEREAS, the Village provides water, sewer and refuse collection services for which payment is made after the product is consumed or the service has otherwise been provided which by virtue of being utility accounts are covered accounts;

NOW THEREFORE BE IT RESOLVED BY THE BOARD OF TRUSTEES OF THE VILLAGE OF CAPITAN, NEW MEXICO that the Red Flag Policy is hereby adopted and approved and be in full force and effect on May 1, 2009.

DONE, PASSED, APPROVED AND ADOPTED THIS 20TH DAY OF APRIL, 2009.


                        _________________________________________
                        Sammy L. Hammons, Mayor
ATTEST:


_____________________________________
Kay Strickland, CMC