0001|                               AN ACT
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0002| RELATING TO FINANCIAL TRANSACTIONS; PROVIDING FOR THE USE OF REPRODUCED
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0003| DOCUMENTS IN CERTAIN TRANSACTIONS; AMENDING A SECTION OF THE NEW MEXICO
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0004| SMALL LOAN ACT OF 1955.
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0005| 
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0006| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0007|      Section 1.  Section 58-15-17 NMSA 1978 (being Laws 1955, Chapter
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0008| 128, Section 15) is amended to read:
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0009|      "58-15-17.  REQUIREMENTS FOR MAKING AND PAYING OF LOANS--INCOM-
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0010| PLETE INSTRUMENTS--LIMITATIONS ON CHARGES AFTER JUDGMENT AND INTEREST.--
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0011|           A.  Every licensee shall:
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0012|                (1)  at the time any loan is made within the provisions
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0013| of the New Mexico Small Loan Act of 1955, deliver to the borrower or, if
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0014| there are two or more borrowers on the same obligation, to one of them,
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0015| a statement in English on which shall be printed a copy of Section 58-15-14.1 NMSA 1978, disclosing in clear and distinct terms the amount of
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0016| the loan, the date the loan was made, a schedule or a description of the
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0017| payments, the type of the security, if any, for the loan, the name and
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0018| address of the licensed office, the name of the person primarily
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0019| obligated for the loan, the amount of principal, the agreed rate of
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0020| charge stated on a percent per month and a percent per year basis and
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0021| the amount in dollars and cents and other items allowable pursuant to
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0022| that act, so stated as to clearly show the allocation of each item
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0023| included;
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0024|                (2)  for each payment made on account of any such loan,
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0025| give to the person making it a plain and complete receipt specifying the
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0001| date and amount of the payment, the amount applied to interest and
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0002| principal and the balance unpaid.  When payment is made in any other
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0003| manner than by the borrower in person, by an agent of the borrower or by
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0004| check or money order, the licensee shall mail the receipt to the
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0005| borrower's last known address or hold the receipt for delivery upon
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0006| request of the borrower.  A copy of all receipts shall be kept on file
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0007| in the office of the licensee as a part of his records; and
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0008|                (3)  upon payment of the loan in full, mark plainly
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0009| every note and promise to pay signed by any obligor with the word "paid"
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0010| or "canceled" and promptly file or record a release of any mortgage if
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0011| the mortgage has been recorded, restore any pledge and cancel and return
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0012| any note and any assignment given to the licensee.  A licensee may mark
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0013| and return a copy of the note, promise to pay or any assignment if the
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0014| copy accurately reproduces the complete original.
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0015|           B.  No licensee shall take any note or promise to pay that
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0016| does not disclose the amount of the loan, a schedule of payments, or a
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0017| description thereof, and the agreed charge or rate of charge or any
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0018| instrument in which blanks are left to be filled in after execution.
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0019|           C.  If judgment is obtained against any party or any loan
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0020| made under the provisions of the New Mexico Small Loan Act of 1955,
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0021| neither the judgment nor the loan shall carry, from the date of the
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0022| judgment, any charges against any party to the loan other than court
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0023| costs, attorneys' fees and interest on the amount of the judgment at ten
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0024| percent a year.
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0025|           D.  Any loan made under the provisions of the New Mexico
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0001| Small Loan Act of 1955 that is filed and approved as a claim in any
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0002| bankruptcy proceeding shall, from a date ninety days subsequent to the
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0003| date of adjudication, bear interest at the rate of ten percent a year
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0004| only.  This limitation shall not apply when the bankrupt is not
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0005| discharged in bankruptcy or to any obligation not dischargeable under
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0006| the provisions of the Bankruptcy Act presently in force or as hereafter
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0007| amended.
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0008|           E.  No loan made under the provisions of the New Mexico Small
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0009| Loan Act of 1955 shall bear interest after ninety days from the date of
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0010| the death of the borrower in excess of a rate of ten percent a year on
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0011| the unpaid principal balance of the loan.
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0012|           F.  No loan made under the provisions of the New Mexico Small
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0013| Loan Act of 1955 shall bear interest after twelve months from the date
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0014| of maturity of the loan in excess of ten percent a year upon the unpaid
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0015| principal balance of the loan."
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0016|                                                                    
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0017|     
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0018|                                                              HB
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0019|     174
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0020|                                                              Page 
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0021|     
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