TITLE 12 TRADE,
COMMERCE AND BANKING
CHAPTER 18 LOAN
COMPANIES
PART 11 NEW
MEXICO ANNUAL PERCENTAGE RATE CALCULATION
12.18.11.1 ISSUING
AGENCY: Financial Institutions Division of the
Regulation and Licensing Department.
[12.18.11.1 NMAC – N, 03/29/2023]
12.18.11.2 SCOPE: Small loan licensees conducting business in New Mexico.
[12.18.11.2 NMAC – N, 03/29/2023]
12.18.11.3 STATUTORY
AUTHORITY: Section 58-15-11 NMSA 1978.
[12.18.11.3 NMAC – N, 03/29/2023]
12.18.11.4 DURATION: Permanent.
[12.18.11.4 NMAC – N, 03/29/2023]
12.18.11.5 EFFECTIVE
DATE: March 29, 2023, unless a later date is cited at the end of
a section.
[12.18.11.5 NMAC – N, 03/29/2023]
12.18.11.6 OBJECTIVE: The objective of this part is to establish regulations governing
the conduct of small loan licensees.
[12.18.11.6 NMAC – N, 03/29/2023]
12.18.11.7 DEFINITIONS:
A. “Truth in Lending Annual Percentage Rate” (“TIL-APR”)
means the calculation of an Annual Percentage Rate mandated pursuant to Federal
Law (12 CFR Part 1026 – Truth in Lending Act). It is intended to provide a
single value for a consumer to compare the cost of credit between one lender
and another.
B. “New Mexico Annual Percentage Rate” (“NM-APR”)
means the calculation of an Annual Percentage Rate pursuant to New Mexico law (Section
58-7-7 NMSA 1978 and Section 58-15-17 NMSA 1978), which may include charges
that are either excluded or may be excluded under certain conditions in the
TIL-APR calculation.
[12.18.11.7 NMAC – N, 03/29/2023]
12.18.11.8 NEW
MEXICO ANNUAL PERCENTAGE RATE EXCLUSIONS:
A. The following charges, based solely on a borrower’s
individual behavior after the extension of credit, cannot reasonably be
predicted and are therefore excluded from the calculation of the NM-APR:
(1) Actual expenditures, including
reasonable attorney fees, for legal process or proceedings to collect on a loan
pursuant to statutory limitation
(2) Ancillary products, such as
insurance, sold after the extension of credit that are not required as a
condition for extension of credit, are properly disclosed, which the customer
authorizes a minimum of seven calendar days after the extension of the credit;
(3) Delinquency fee charges pursuant to
statutory limitations and as properly disclosed in loan agreements;
(4) Force placed or similar collateral
insurance in the event that a borrower fails to
maintain in effect any collateral insurance required in connection with a loan
transaction, pursuant to statutory conditions;
(5) Charges imposed by third parties in
connection with credit or debit card transactions, Automated Clearing House
(ACH) payments, or similar, provided that a specific method of payment by the
borrower is not required as a condition of the extension of credit;
(6) Non-sufficient funds (NSF) charges
for debits not honored by the drawee’s financial institutions and are
subsequently reversed from the lender’s account, subject to statutory limitations;
(7) Parking or similar fees if they are
charged to all individuals who utilize the parking area for which the fees are
associated;
(8) Reimbursement for Global Positioning
Systems (GPS) or similar devises installed on vehicles or other movable collateral
when required as a condition of the extension of credit, when those devises are
removed or destroyed by the borrower without the lender’s authorization and
subsequently not returned in working order to the lender within 15 days of such
removal;
(9) Any other charges arising solely from
the borrower’s behavior that are not required by the lender as a condition for
the extension of credit and are not either prohibited
or prohibited from exclusion by law.
B. Any amount paid to a public official in relation to the
extension of credit, including fees to record or release liens.
C. For loans of five hundred dollars ($500) or less, a fee
not exceeding five percent of the total principal of the loan, provided that
such fee is not imposed on any borrower more than one time per 12-month period,
may be excluded from the calculation of the NM-APR.
[12.18.11.8 NMAC – N, 03/29/2023]
History of
12.18.11 NMAC: [RESERVED]