New Mexico Administrative Code › Title 12 - TRADE, COMMERCE AND BANKING › Chapter 18 - LOAN COMPANIES › Part 8 - LICENSING OF NONRESIDENT LENDERS › Section 12.18.8.8 - LICENSING OF NONRESIDENT LENDERS

Current through Register Vol. 35, No. 13, July 16, 2024
A.
				When the proceeds of a small loan in the amount or of the value of $10,000 or
				less have been delivered to a New Mexico resident borrower by mail within New
				Mexico or have been otherwise made available to a New Mexico resident borrower
				within New Mexico, by a lender who solicited such small loan by mail or
				otherwise and the solicitation is received by a New Mexico resident in New
				Mexico, the loan is considered to have been made in New Mexico for the purposes
				of the New Mexico Small Loan Act of 1955, and both the lender and the loan are
				thereby subject to the provisions contained in said act. Any person making
				small loans under such circumstances is deemed to be engaging in the business
				of lending, as that term is used in Section
				58-15-3 NMSA 1978, and the person
				must first have obtained a license from the director under the provisions of
				the New Mexico Small Loan Act of 1955 and this regulation if the person
				contracts for, exacts or receives, directly or indirectly on or in connection
				with the loan, charges, whether for interest, compensation, consideration or
				expense, which in the aggregate are greater than the maximum as provided by the
				applicable laws of New Mexico.
B.
				Such loans and licensees must comply with all the requirements and provisions
				contained in the New Mexico Small Loan Act of 1955, including the limitations
				on the maximum allowable charges contained in Section
				58-15-14.1 NMSA 1978.
C. Such a loan made by a licensee under such
				conditions is not considered to have been made outside of New Mexico so as to
				be unenforceable under Section
				58-15-24 NMSA 1978, even though
				the lender's place of business is located outside of New Mexico.
D. If a person applies for a small loan
				license in order to engage in the business of making small loans to resident
				borrowers solely from locations outside of New Mexico, the "community" in which
				the business of the applicant is to be conducted, as that term is used in
				Section 58-15-5 NMSA 1978, shall mean the
				geographic area, which may be statewide, in which the applicant proposes to
				solicit such small loans.
E. Upon
				the granting of a small loan license to a lender who indicates an intention to
				conduct a small loan business solely from locations outside of New Mexico, that
				lender shall establish and maintain a toll-free telephone service available in
				New Mexico to resident borrowers, or shall agree to accept collect calls at the
				lender's principal place of business from resident borrowers so that borrowers
				may contact the lender or his representatives concerning details of their loan
				transactions. Upon the delivery of the proceeds of such a small loan to a
				resident of New Mexico, the licensee shall immediately notify the borrower in
				writing of the existence of such toll-free telephone service, or of the
				agreement to accept collect calls.
F. If a licensee engages in the business of
				making small loans to New Mexico residents solely from locations outside of New
				Mexico, the director will conduct, in his discretion, the examinations
				authorized by Section
				58-15-9 NMSA 1978, in either of
				two ways:
(1) the licensee may be required to
				make available to the director for examination at the offices of the director
				such of the loans, transactions, books, papers and records of the licensee,
				insofar as they pertain to the business licensed under the New Mexico Small
				Loan Act of 1955, as the director may deem necessary; or
(2) the examinations of the loans,
				transactions, books, papers and records of the licensee, insofar as they
				pertain to the business licensed under the New Mexico Small Loan Act of 1955,
				may be conducted by the director or the director's authorized representative at
				the licensee's principal place of business outside of New Mexico, and the
				licensee shall be required to pay to the director the actual and reasonable
				travel and living expenses incurred during such examinations for one examiner
				per examination. Said payments for expenses shall be in addition to such other
				fees and expenses as may be authorized under the New Mexico Small Loan Act of
				1955. The director may require the licensee to pay such expenses prior to the
				examination.