ASSOCIATED WITH FINANCING; AMENDING THE LATEST MEXICO BANK INSTALLMENT LOAN ACT OF 1959 ADDITIONALLY THE brand brand NEW MEXICO SMALL LOAN ACT OF 1955; ADDING AND CERTAIN that is AMENDING DEFINITIONS IMPOSING The CAP ON INTEREST LEVELS AND FEES FOR SEVERAL LOANS; AMENDING PAY DAY LOAN DISCLOSURE REQUIREMENTS; REPEALING A PART OF THIS NEW MEXICO SMALL LOAN ACT OF 1955.
BE IT ENACTED BECAUSE OF THE LEGISLATURE OF THIS STATE OF NEW MEXICO:
SECTION 1. Section 58-7-1 NMSA 1978 (being Laws 1959, Chapter 327, area 1) is amended to see:
“58-7-1. BRIEF TITLE.–[ This work will probably be understood ] Chapter 58, Article 7 NMSA 1978 could be cited while the “New Mexico Bank Installment Loan Act of 1959″.”
PART 2. Section NMSA that is 58-7-3 (being Laws 1995, Chapter 190, area 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 that is a precomputed loan repayable in installments [ or this is certainly plainly identified regarding 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 read through:
“58-7-3.1. LOAN DEFINITIONS –PRECOMPUTED LOAN INTEREST CALCULATION .–
A. As utilized in the brand new Mexico Bank Installment Loan Act of 1959:
(1) “installment loan” means that loan that is to be paid back in no less than four successive considerably equal payment quantities to cover that loan off in its entirety with a time period of no less than a hundred twenty days to readiness; and
(2) “precomputed loan” means an installment loan where the loan principal and interest owed are computed and planned for re re re payment within the lifetime of the loan.
B. The interest charge may be calculated on the assumption that all scheduled payments will be made when due, and the effect of prepayment is governed by the provisions of rebate upon prepayment in Section 58-7-5 NMSA 1978 if[ the ] a loan is a precomputed loan transaction.”