1. A. None of the provisions of the New Mexico Small Loan Act of 1955 [Chapter 58, Article 15 NMSA 1978] are amended or repealed by the New Mexico Bank Installment Loan Act of 1959.
2. B. None of the provisions of the New Mexico Bank Installment Loan Act of 1959 apply to the assignment or purchase of retail installment contracts originated under the provisions of Sections 58-19-1 through 58-19-14 NMSA 1978 or originated under the provisions of Sections 56-1-1 through 56-1-15 NMSA 1978.
3. C. In the event of a conflict between a requirement of the New Mexico Bank Installment Loan Act of 1959 and a requirement of the Home Loan Protection Act [Chapter 58, Article 21A NMSA 1978], the requirement of the Home Loan Protection Act shall control.

4. D. As used in the New Mexico Bank Installment Loan Act of 1959:

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

   2. (2) "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. (a) public record information; or
      2. (b) credit account information from persons who furnish that information regularly and in the ordinary course of business;
   3. (3) "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. (4) "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;
   5. (5) "month" means one-twelfth of a year;
   6. (6) "person" includes an individual, copartner, association, trust, corporation and any other legal entity;
   7. (7) "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; and
   8. (8) "year" means three hundred sixty-five days.
5. E. The director of the financial institutions division of the regulation and licensing department shall issue and file as required by law interpretive regulations to effectuate the purposes of the New Mexico Bank Installment Loan Act of 1959. In issuing, amending or repealing interpretive regulations, the director shall issue the regulation amendment or repeal of the regulation as a proposed regulation amendment or repeal of a regulation and file it for public inspection in the office of the director of the financial institutions division. Distribution thereof shall be made to interested persons, and their comments shall be invited. After the proposed regulation has been on file for not less than two months, the director may issue it as a final regulation by filing as required by law. Any person who is or may be adversely affected by the adoption, amendment or repeal of a regulation under this section may file an appeal of that action in the district court in Santa Fe county within thirty days after the filing of the adopted regulation, amendment or repeal as required by law.
6. F. Any person complying with the regulations adopted by the director of the financial institutions division of the regulation and licensing department is deemed to have complied with the provisions of the New Mexico Bank Installment Loan Act of 1959.

History: 1953 Comp., § 48-21-10, enacted by Laws 1959, ch. 327, § 10; 1975, ch. 252, § 5; 1977, ch. 245, § 118; 1983, ch. 96, § 4; 1995, ch. 190, § 16; 2003, ch. 436, § 15; 2017, ch. 110, § 8; 2019, ch. 201, § 5; 2022, ch. 23, § 4.

ANNOTATIONS

Cross references. — For procedures governing statutory appeals from administrative decisions or orders, see Rule 1-074 NMRA.

Compiler's notes. — For scope of review of the district court, see Zamora v. Village of Ruidoso Downs, 1995-NMSC-072, 120 N.M. 778, 907 P.2d 182.

The 2022 amendment, effective January 1, 2023, revised the definition of "consumer", and defined "debit authorization" and "prime rate", as used in the New Mexico Bank Installment Loan Act of 1959; in Subsection D, Paragraph D(1), after "a person who", added "resides in New Mexico or who", and after "loan agreement in New Mexico", deleted "Bank Installment Loan Act of 1959", added a new Paragraph D(3) and redesignated former Paragraphs D(3) through D(5) as Paragraphs D(4) through D(6), respectively, and added a new Paragraph D(7) and redesignated former Paragraph D(6) as Paragraph D(8).

The 2019 amendment, effective January 1, 2020, defined "consumer", "make a loan", and "person" as used in the New Mexico Bank Installment Loan Act of 1959; in Subsection D, deleted former Paragraphs D(1) and D(2), added new Paragraph D(1) and redesignated former Paragraph D(3) as Paragraph D(2), and added new Paragraphs D(3) through D(6).

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, removed a provision exempting certain transactions from the provisions of the New Mexico Bank Installment Loan Act of 1959, removed a provision that required certain loans to be clearly identified on the loan documents as being made under the New Mexico Bank Installment Loan Act of 1959, and defined "consumer reporting agency"; deleted former Subsection B and redesignated former Subsections C through G as Subsections B through F, respectively; in Subsection D, added Paragraph D(3); and deleted former Subsection H.

The 2003 amendment, effective June 20, 2003, inserted Subsection D and redesignated the remaining subsections accordingly; and deleted former Paragraph E(3), concerning the definition of a "day".

The 1995 amendment, effective June 16, 1995, deleted former Paragraphs (4), (5) and (6) of Subsection D defining "credit card plan", "cardholder", and "card issuer", substituted "regulation and licensing department" for "commerce and industry department" in Subsections E and F, substituted "director" for "commissioner" in Subsection E, and made minor stylistic changes throughout the section.

Interest and other charges. — With the repeal of the interest ceiling, there are no limits on interest rates for installment loans, provided that the rate charged is agreed to in writing and that the lender fully complies with disclosure requirements; as to charges other than interest, the restrictions of this article apply to precomputed loans or those loans which are identified on the loan documents as being made under this article. 1985 Op. Att'y Gen. No. 85-01.

Am. Jur. 2d, A.L.R. and C.J.S. references. — 10 Am. Jur. 2d Banks § 694.

9 C.J.S. Banks and Banking §§ 8, 9.