NM Used Fund To Make Interest-Free Loans To Films

New Mexico – A newly appointed member of the State Investment Council is questioning whether New Mexico should be using one of the state's permanent funds to make interest-free loans to films.

Former state Sen. Leonard Lee Rawson of Las Cruces voiced his doubts Tuesday as the council decided to to temporarily extend a contract with a Hollywood lawyer to advise the state on film investments.

The contract with Peter Dekom will be extended through May while the council looks to hire a permanent film adviser.

The council previously extended Dekom's contract through April and he was paid a monthly rate of nearly $15,000.

New Mexico makes loans to film projects produced in New Mexico. Dekom recommends whether the council should approve the investments.

Copyright 2010 The Associated Press.