ASSOCIATED WITH FINANCING; AMENDING THE BRAND NEW MEXICO BANK INSTALLMENT LOAN ACT OF 1959 THEREFORE THE NEW MEXICO SMALL LOAN ACT OF 1955; ADDING AND AMENDING CERTAIN DEFINITIONS; IMPOSING The CAP ON INTEREST RATES AND FEES FOR MANY LOANS; AMENDING CASH ADVANCE DISCLOSURE REQUIREMENTS; REPEALING A ELEMENT OF THE NEWEST MEXICO SMALL LOAN ACT OF 1955.
BE IT ENACTED BECAUSE OF THE LEGISLATURE OF THIS continuing STATE OF NEW MEXICO:
SECTION 1. Section 58-7-1 NMSA 1978 (being Laws 1959, Chapter 327, part 1) is amended to learn:
«58-7-1. BRIEF TITLE.–[ This act will probably be understood ] Chapter 58, Article 7 NMSA 1978 might be cited due to the fact «New Mexico Bank Installment Loan Act of 1959″.»
PART 2. Section NMSA that is 58-7-3 (being Laws 1995, Chapter 190, part 15) is amended to learn:
«58-7-3. LOANS COVERED BY ACT.–The New Mexico Bank Installment Loan Act of 1959 relates to a loan this is certainly a loan that is precomputed in installments [ or that is demonstrably identified in the loan papers to be made under that work ].»
AREA 3. Section 58-7-3.1 NMSA 1978 (being Laws 1983, Chapter 96, area 1) is amended to see:
«58-7-3.1. LOAN DEFINITIONS –PRECOMPUTED LOAN INTEREST CALCULATION .–
A. As utilized in this new Mexico Bank Installment Loan Act of 1959:
(1) «installment loan» means that loan this is certainly become repaid in no less than four successive significantly equal payment quantities to cover that loan off in its entirety with a time period of for around a hundred twenty times to readiness; and
(2) «precomputed loan» means an installment loan when the loan principal and interest owed are computed and planned for payment on the life of the mortgage.
B. If [ the ] a loan is just a precomputed loan deal, the attention cost are determined from the presumption that most planned repayments would be made whenever due, in addition to aftereffect of prepayment is governed by the conditions of rebate upon prepayment in area 58-7-5 NMSA 1978.»