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Bill > HB26


NM HB26

NM HB26
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 36% per year cap on interest rates for the extension of credit, except for federally insured depository institutions and government-issued bonds. It also voids any contracts with interest rates exceeding the cap, and repeals a section of the New Mexico Small Loan Act of 1955. The bill provides that if the U.S. prime lending rate exceeds 10%, the maximum interest rate may exceed 36% but cannot be more than 30 percentage points above the prime rate.

Committee Categories

Business and Industry

Sponsors (1)

Last Action

[LD 1] Referred to House Business & Industry (on 01/17/2017)

bill text


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