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NM SB15

NM SB15
Small Loan Interest Rate Caps


summary

Introduced
01/17/2017
In Committee
01/17/2017
Crossed Over
Passed
Dead
03/18/2017

Introduced Session

2017 Regular Session

Bill Summary

AN ACT RELATING TO LENDING; ENACTING NEW SECTIONS OF THE NEW MEXICO BANK INSTALLMENT LOAN ACT OF 1959 AND THE NEW MEXICO SMALL LOAN ACT OF 1955; IMPOSING A CAP ON INTEREST RATES; VOIDING CONTRACTS THAT EXCEED THE INTEREST RATE CAP; REPEALING A SECTION OF THE NEW MEXICO SMALL LOAN ACT OF 1955.

AI Summary

This bill imposes a cap of 36% per year on the maximum lawful rate of interest that can be charged for the extension of credit, with an exception allowing the rate to exceed 36% but not more than 30 percentage points above the United States prime lending rate if the prime rate exceeds 10%. The bill voids any contracts with interest rates exceeding the maximum lawful rate, and repeals a section of the New Mexico Small Loan Act of 1955. The provisions of the bill take effect on July 1, 2017.

Committee Categories

Transportation and Infrastructure

Sponsors (5)

Last Action

[LD 1] Referred to Senate Corporations & Transportation (on 01/17/2017)

bill text


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