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Bill > HB480


NM HB480

NM HB480
Small Loan Interest Rates


summary

Introduced
01/22/2017
In Committee
01/28/2017
Crossed Over
Passed
Dead
03/18/2017

Introduced Session

2017 Regular Session

Bill Summary

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

AI Summary

This bill limits the maximum lawful interest rate for small loans in New Mexico to 36% per year, with an exception allowing for a higher rate if the U.S. prime lending rate exceeds 10%. The bill also voids any loan contract with an interest rate exceeding the maximum lawful rate, and repeals a section of the existing New Mexico Small Loan Act of 1955. The bill aims to protect borrowers from excessive interest rates on small loans.

Committee Categories

Business and Industry

Sponsors (1)

Last Action

[LD 12] Referred to House Business & Industry (on 01/28/2017)

bill text


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