The following words and terms when used in the New Mexico Small Loan Act of 1955 have the following meanings unless the context clearly requires a different meaning. The meaning ascribed to the singular form applies also to the plural:

1. A. "consumer" means a person who resides in New Mexico or who enters into a loan agreement in New Mexico;

2. B. "consumer reporting agency" means any person that, for monetary fees or dues or on a cooperative nonprofit basis, regularly engages in the practice of assembling or evaluating, and maintaining, for the purpose of furnishing consumer reports to third parties bearing on a consumer's creditworthiness, credit standing or credit capacity, each of the following regarding consumers:

   1. (1) public record information; or
   2. (2) credit account information from persons who furnish that information regularly and in the ordinary course of business;
3. C. "debit authorization" means an authorization signed by a consumer to electronically transfer or withdraw funds from the consumer's account for the specific purpose of repaying a loan;
4. D. "division" means the financial institutions division of the regulation and licensing department;
5. E. "director" means the director of the division;

6. F. "installment loan" means a loan that is not a refund anticipation loan and is in an amount less than or equal to ten thousand dollars ($10,000) that is to be repaid:

   1. (1) in a minimum of four substantially equal payments of principal and interest to pay off a loan in its entirety with an initial stated maturity of not less than one hundred twenty days to maturity; or
   2. (2) in any number of payments and with any initial stated days to maturity that bears no finance charge as disclosed pursuant to 12 CFR Part 1026, known as "Regulation Z", and with respect to which no other fees or charges of any kind are imposed at any time;
7. G. "license" means a permit issued under the authority of the New Mexico Small Loan Act of 1955 to make loans and collect charges therefor strictly in accordance with the provisions of that act at a single place of business. It shall constitute and shall be construed as a grant of a revocable privilege only to be held and enjoyed subject to all the conditions, restrictions and limitations contained in the New Mexico Small Loan Act of 1955 and lawful regulations promulgated by the director and not otherwise;
8. H. "licensee" means a person to whom one or more licenses have been issued pursuant to the New Mexico Small Loan Act of 1955 upon the person's written application electing to become a licensee and consenting to exercise the privilege of a licensee solely in conformity with the New Mexico Small Loan Act of 1955 and the lawful regulations promulgated by the director under that act and whose name appears on the face of the license;
9. I. "make a loan" means to originate a new loan agreement or to make any change to the terms of an existing loan agreement, including the principal amount financed, the annual percentage rate, finance charge, fees or payment schedule;
10. J. "person" includes an individual, copartner, association, trust, corporation and any other legal entity;
11. K. "prime rate of interest" means the bank prime loan rate published by the board of governors of the federal reserve system on the last business day of the preceding month;
12. L. "refund anticipation loan" means a loan that is secured by or that the creditor arranges or expects to be repaid, directly or indirectly, from the proceeds of the consumer's federal or state personal income tax refunds or tax credits, including any sale, assignment or purchase of a tax refund or tax credit at a discount or for a fee; and
13. M. "simple interest" means a method of calculating interest in which the amount of interest is calculated based on the annual percentage rate disclosed in the loan agreement and is computed only on the outstanding principal balance of the loan.

History: 1953 Comp., § 48-17-31, enacted by Laws 1955, ch. 128, § 2; 1977, ch. 245, § 60; 2007, ch. 86, § 2; 2017, ch. 110, § 11; 2019, ch. 201, § 8; 2022, ch. 23, § 5.

ANNOTATIONS

The 2022 amendment, effective January 1, 2023, revised the definition of "installment loan", and defined "prime rate of interest", as used in the New Mexico Small Loan Act of 1955; in Subsection F, after "means a loan", deleted "in an amount less than or equal to five thousand dollars ($5,000) that is to be repaid in a minimum of four substantially equal payments of principal and interest to pay off a loan in its entirety with an initial stated maturity of not less than one hundred twenty days to maturity. 'Installment loan' does not mean a refund anticipation loan" and added "that is not a refund anticipation loan and is in an amount less than or equal to ten thousand dollars ($10,000) that is to be repaid", and added Paragraphs F(1) and F(2); and added a new Subsection K and redesignated former Subsections K and L as Subsections L and M, respectively.

The 2019 amendment, effective January 1, 2020, defined "make a loan" and revised the definition of "consumer" as used in the New Mexico Small Loan Act of 1955; in Subsection A, after "person", added "who resides in New Mexico or", and after "agreement", deleted "and receives the loan proceeds"; added a new Subsection I and redesignated former Subsections I through K as Subsection J through L, respectively; and in Subsection L, after "annual", deleted "interest" and added "percentage".

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.

The 2017 amendment, effective January 1, 2018, defined "consumer reporting agency", "installment loan", and "refund anticipation loan" as used in the New Mexico Small Loan Act of 1955, and removed the definitions of certain terms; added a new Subsection B and redesignated former Subsections B through D as Subsections C through E, respectively; in Subsection D, deleted "‘department’ or"; deleted former Subsection E, which defined "installment loan"; added a new Subsection F and redesignated former Subsections F and G as Subsections G and H, respectively; deleted former Subsections H and I, which defined "payday loan" and "payday loan product", respectively, and redesignated former Subsection J as Subsection I; added a new Subsection J; and deleted former Subsection K and redesignated former Subsection L as Subsection K.

The 2007 amendment, effective November 1, 2007, added the definitions of "consumer", "debit authorization", "installment loan", "payday loan", "payday loan product", "renewed payday loan", and "simple interest".

Severability clause. — Laws 2007, ch. 86, § 23 provided that if any part or application of the act is held invalid, the remainder or its application to other situations or persons shall not be affected.