2023 New Mexico Statutes › Chapter 58 - Financial Institutions and Regulations › Article 7 - Installment Loans › Section 58-7-3.3 - Requirements for making and paying loans; incomplete instruments; limitations on charges after judgment and interest.

A. Every lender shall:
(1) at the time a consumer becomes contractually obligated on a precomputed loan transaction, deliver to the borrower or, if there are two or more borrowers on the same obligation, to one of the borrowers, a written statement on which shall be printed a copy of Section 58-7-3 NMSA 1978, and which shall disclose in clear and distinct terms:
(a) the amount of the loan;
(b) the date the loan was consummated;
(c) a schedule or a description of the payments;
(d) the type of the security, if any, securing the loan;
(e) the name and address of the lender;
(f) the name of the person primarily obligated for the loan;
(g) the amount of principal;
(h) the annual percentage rate as calculated pursuant to 12 CFR Part 1026, known as "Regulation Z", and the amount of interest payable in dollars and cents;
(i) all other disclosures required pursuant to state and federal law; and
(j) the charge for any other item allowable and included pursuant to the New Mexico Bank Installment Loan Act of 1959 [Chapter 58, Article 15 NMSA 1978], stated so as to clearly show the allocation of each item included;
(2) for each payment made on account of a loan, give to the person making the payment a plain and complete receipt specifying the date and amount of the payment, the amount applied to interest and principal and the balance unpaid. When a payment is made in a manner other than by the borrower in person, by an agent of the borrower or by check or money order, the licensee shall mail the receipt to the borrower's last known address or retain and deliver the receipt upon request of the borrower. A licensee may deliver the receipt electronically to the borrower via text message or email, if requested to do so in writing by the borrower. A borrower may withdraw authorization for electronic delivery of receipts in writing at any time. A licensee shall not require a borrower to receive receipts electronically. The licensee shall maintain a copy of each receipt in the office of the licensee as a part of the licensee's records; and
(3) upon repayment of the loan in full, plainly mark every note and promise to pay signed by any borrower with the word "paid" or "canceled" and promptly file or record a release of any mortgage if the mortgage has been recorded, restore any pledge and cancel and return any note and any assignment given to the licensee. A licensee may mark and return a copy of the note, promise to pay or any assignment if the copy accurately reproduces the complete original.
B. A judgment obtained against a party on a loan made pursuant to the New Mexico Bank Installment Loan Act of 1959, shall not include, and the loan shall not include, from the date of the judgment, charges against a party to the loan other than costs, attorney fees and post-judgment interest as provided by law.
C. A loan made pursuant to the New Mexico Bank Installment Loan Act of 1959 that is filed and approved as a claim in any bankruptcy proceeding shall bear interest at the rate of ten percent per year beginning on the ninetieth day following the date of adjudication. This limitation shall not apply when the bankrupt is not discharged in bankruptcy or to any obligation not dischargeable under the provisions of the United States Bankruptcy Code presently in force.
D. A loan made pursuant to the New Mexico Bank Installment Loan Act of 1959 shall not bear interest in excess of ten percent per year on the unpaid principal balance of a loan after ninety days following the date of the death of the borrower; provided that the deceased borrower is the sole obligor to the loan agreement.
E. A loan made pursuant to the New Mexico Bank Installment Loan Act of 1959 shall not bear interest in excess of ten percent per year upon the unpaid principal balance of the loan after twelve months following the date of maturity of the loan.
History:
Laws 2019, ch. 201, § 6.
ANNOTATIONS
Effective dates.
— Laws 2019, ch. 201, § 18 made Laws 2019, ch. 201 effective January 1, 2020.
Applicability.
— Laws 2019, ch. 201, § 17 provided that the provisions of this act apply to loans subject to the New Mexico Small Loan Act of 1955 and the New Mexico Bank Installment Loan Act of 1959 that are executed on or after January 1, 2020.