2023 New Mexico Statutes › Chapter 58 - Financial Institutions and Regulations › Article 19 - Motor Vehicle Sales Finance › Section 58-19-3 - Licensing of sales finance companies required; denial of license; provision for out-of-state licenses.

A. A person shall not engage in the business of a sales finance company in this state without a license as provided in the Motor Vehicle Sales Finance Act; provided, however, that a state or national bank authorized to do business in this state shall not be required to obtain a license under that act but shall comply with all of its other provisions.
B. The application for a license shall be in writing, under oath and in the form prescribed by the director. The application shall contain the name of the applicant; date of incorporation, if incorporated; the address where the business is or is to be conducted and similar information as to any branch office of the applicant; the name and resident address of the owner or partners or, if a corporation or association, of the directors, trustees and principal officers; and such other pertinent information as the director may require.
C. The license fee for each calendar year or part thereof shall be four hundred dollars ($400) for the principal place of business of the licensee and four hundred dollars ($400) for each branch of the licensee maintained in this state. For a license maintained out of this state, the license fee shall be five hundred dollars ($500) for each office. All fees shall be deposited with the state treasurer for deposit and transfer as provided in Section 9-16-14 NMSA 1978.
D. Each license shall specify the location of the office or branch. In case a location is changed, the director shall endorse the change of location on the license upon payment to the director by the licensee of a duplicate license fee of twenty-five dollars ($25.00).
E. Applicants for a license issued pursuant to the Motor Vehicle Sales Finance Act shall apply using a form prescribed by the director. Information required on the form shall be set forth by rule, instruction or procedure of the director, and may be changed or updated as necessary by the director in order to carry out the purposes of the Motor Vehicle Sales Finance Act.
F. The director may establish relationships or contracts with the nationwide multistate licensing system and registry or other entities designated by the nationwide multistate licensing system and registry to collect and maintain records and process transaction fees or other fees related to licenses issued pursuant to the Motor Vehicle Sales Finance Act.
G. In an application for a license issued pursuant to the Motor Vehicle Sales Finance Act, the applicant shall, at a minimum, furnish to the nationwide multistate licensing system and registry information concerning the applicant's identity, including:
(1) the applicant's personal history and experience in a form prescribed by the nationwide multistate licensing system and registry; and
(2) authorization for the nationwide multistate licensing system and registry and the director to obtain information related to any administrative, civil or criminal findings by any governmental jurisdiction regarding the applicant.
H. The director may use the nationwide multistate licensing system and registry as a channeling agent for requesting and distributing information provided pursuant to Paragraphs (1) and (2) of Subsection G of this section to and from any source as deemed appropriate by the director.
I. Upon the filing of an application and the payment of the fee, the director shall issue to the applicant a license to engage in the business of a sales finance company under and in accordance with the provisions of the Motor Vehicle Sales Finance Act for a period that shall expire on December 31 next following the date of its issuance. The license shall not be transferable or assignable. A licensee shall not transact any business provided for by the Motor Vehicle Sales Finance Act under any other name.
J. The director shall deny a license under the Motor Vehicle Sales Finance Act if the director finds that:
(1) the applicant has failed to pay the required fee;
(2) the applicant has willfully furnished the director with false or misleading information in the application; or
(3) there is reason to believe that the financial responsibility, character and general fitness of the applicant for an original license and of the individual members and beneficiaries thereof, if the applicant is a copartnership, association or trust, and of the officers and directors thereof, if the applicant is a corporation, are such as to warrant belief that the business will not be operated lawfully, honestly, fairly and efficiently within the declared purposes and spirit of that act.
If an original license is denied by the director, the director shall immediately notify the applicant in writing setting forth the reasons for denial.
K. The director may issue a motor vehicle sales finance company license to an applicant who applies for such a license to be located outside the state, if the applicant:
(1) files an application on a form prescribed by the director enclosing a license fee of five hundred dollars ($500);
(2) maintains, at all times, an agent for service of process, who shall be a resident of New Mexico; and
(3) complies with all sections of the Motor Vehicle Sales Finance Act and any rules and regulations that may be promulgated by the director and complies with all statutes relating to money, interest and usury that are applicable to motor vehicle sales finance companies.
A motor vehicle sales finance company license may be granted to an applicant anywhere in the United States. Local situs is not a requirement for the granting of a license to an out-of-state applicant.
History:
1953 Comp., § 50-15-3, enacted by Laws 1959, ch. 204, § 3; 1979, ch. 388, § 2; 1987, ch. 292, § 6; 1987, ch. 298, § 6; 1989, ch. 209, § 11; 2019, ch. 144, § 2.
ANNOTATIONS
The 2019 amendment,
effective July 1, 2019, revised certain licensing procedures for the licensing of sales finance companies, and provided for the director of the financial institutions division of the regulation and licensing department to utilize the nationwide multistate licensing system and registry to receive and process applications for licenses; in Subsection D, after "office or branch", deleted "and the license shall be conspicuously displayed in the office or branch"; and added new Subsections E through H and redesignated former Subsections E through G as Subsections I through K, respectively.
Am. Jur. 2d, A.L.R. and C.J.S. references. —
51 Am. Jur. 2d Licenses and Permits §§ 1 to 15.
53 C.J.S. Licenses § 7.