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Can you summarize Article 7, Chapter 58 NMSA?
Financial Institutions and Regulations > Installment Loans
Short Summary
The New Mexico Bank Installment Loan Act of 1959 governs the regulation of installment loans in New Mexico. It applies to persons and entities involved in making loans in the state. The Act does not amend or repeal the provisions of the New Mexico Small Loan Act of 1955. It also does not apply to the assignment or purchase of retail installment contracts originated under specific provisions of the New Mexico Statutes Annotated 1978. In case of a conflict between the requirements of the New Mexico Bank Installment Loan Act of 1959 and the Home Loan Protection Act, the requirements of the Home Loan Protection Act prevail. The Act provides definitions for terms such as ‘consumer,’ ‘consumer reporting agency,’ ‘debit authorization,’ ‘make a loan,’ ‘month,’ ‘person,’ ‘prime rate of interest,’ and ‘year.’ The director of the financial institutions division of the regulation and licensing department is responsible for issuing interpretive regulations to effectuate the purposes of the Act. Compliance with the regulations issued by the director is deemed as compliance with the provisions of the Act. Penalties for violations of the Act include fines ranging from $100 to $5,000, imprisonment for up to six months, or both for willful violations. Additionally, the taking, receiving, or reserving of a rate of charge, discount, or advantage greater than allowed by the Act results in the forfeiture of the entire amount. If the greater rate of charge has been paid, the person who paid it or their legal representatives may recover twice the amount of the rate of charge paid from the person who took or received it.
Whom does it apply to?
Persons and entities involved in making loans in the state
What does it govern?
Regulation of installment loans in New Mexico
What are exemptions?
Exemptions for federally insured depository institutions
What are the Penalties?
Fines ranging from $100 to $5,000, imprisonment for up to six months, or both for willful violations; forfeiture of the entire amount for taking, receiving, or reserving a greater rate of charge
Jurisdiction
New Mexico