Bill > SB72

This bill establishes a maximum lawful interest rate of thirty-six percent per year for most extensions of credit, with certain exceptions, and clarifies that this calculation must include all fees and charges associated with the loan. Contracts with interest rates exceeding this cap, entered into after July 1, 2015, will be void regarding both principal and interest, and penalties for charging excessive interest are outlined, including the potential forfeiture of all interest and the ability for borrowers to recover double the amount of usurious interest paid. The bill also specifies that this interest rate limitation does not apply to federally insured depository institutions or government-issued bonds, and it adjusts the maximum rate when the U.S. prime lending rate exceeds ten percent, allowing it to go up to thirty percentage points above the prime rate. Additionally, the bill makes conforming changes to existing laws, including the New Mexico Bank Installment Loan Act and the New Mexico Small Loan Act, and repeals a previous provision related to interest rates.