SB 66 — PERMITTED PERCENTAGE RATES FOR LOANS

eNo lender other than a nfederally binsured 24depository D.institution shall make a loan pursuant to the New Mexico Bank Installment Loan Act of 1959 unless the loan is repayable in a minimum of four substantially equal installment payments of principal and interest.

NoD. lender, other than a federally insured u [ depository institution, shall make a loan pursuant to the New .220134.3 - 5 - SJC/SB 66 Mexico Bank Installment Loan Act of 1959 that has [an] a permitted annual percentage rate greater than [one hundred seventy-five percent, calculated pursuant to 12 CFR Part 1026, known as "Regulation Z"] thirty-six percent, calculated pursuant to this subsection and Subsections E and F of this section.

TheHfl1ºHJCºNo»HJC calculationHJCºExcept as provided in Subsection K of this section, no»HJC»Hfl1 Hfl1ºNo»Hfl1 lender, other than a federally insured depository institution, shall make a loan pursuant to the New Mexico Bank Installment Loan Act of 1959 that has [an ] a permitted annual percentage rate shall:greater than [one hundred seventy-five percent, calculated pursuant to 12 CFR Part 1026, known as "Regulation Z"] Hfl1ºthirty-six percent»Hfl1 Hfl1º:

(1) ninety-nine percent for a loan in an amount of one thousand one hundred dollars ($1,100) or less, h u » r calculated pursuant to 12 CFR Part 1026, known as "Regulation t h g e Z", this subsection and Subsection E of this section;

provided l i h r that the loan shall not have a loan term longer than twenty- i s h , e h four months, the loan shall not be refinanced by the lender and t u g e b l the calculation of the permitted annual percentage rate shall e e , gh n d d i include finance charges as defined in 12 CFR Part 1026, known = = o h l ] b ,d i a º r as "Regulation Z";

or e r = t e w d (2) thirty-six percent for a loan in an amount m a n o d m :

b r e t º o t n = .220134.3AIC March 18, 2021 (1:47pm) s k m e - 6 - e a n e d r e l u [ A d SJC/SB 66 greater than one thousand one hundred dollars ($1,100)»Hfl1 , calculated pursuant to HCEDCº12 CFR Part 1026, known as "Regulation Z",»HCEDC this subsection and Subsections E and F of this section Hfl1º.

The»Hfl1 Hfl1º;

provided that the»Hfl1 calculation of the permitted annual percentage HCEDCºrate shall:

(2) include any charge as provided in Paragraph (1) of this subsection even if that charge would be excluded from the calculation of finance charges pursuant to e t 17 Regulation Z;

wh l n d 18 (3) not include any amount paid to a public =u =» 19r official in relation to the extension of credit, including fees at lh ig a e r 20 to record liens;

and al ti mh mr 21i s (4) follow the rules established for dh r, e 22h calculating the disclosed annual percentage rate for credit ct eu sg ke 23b l transactions pursuant to Regulation Z based on the charges set e ae , gh n bd 24d i = = o h forth in Paragraph (1) of this subsection.subsection.»HCEDC HCEDCºrate l ] b ,d i a º r shall include finance charges as defined in 12 CFR Part 1026, e r = t e w d m a n o known as "Regulation Z".»HCEDC d m :

b r e t º o t n = .220134.3AIC March 18, 2021 (1:47pm) s k m e - 7 - e a n e d r e l u [ A d SJC/SB 66 E.

Nothing in Subsection D of this section shall .220134.3 - 6 - SJC/SB 66 permit the imposition of fees, interest or charges of any kind not otherwise permitted by the New Mexico Bank Installment Loan Act of 1959.

IfHfl1ºIf»Hfl1 Hfl1ºFor a loan in an amount greater than one thousand one hundred dollars ($1,100), if»Hfl1 the prime rate of interest exceeds ten percent for three consecutive months, then during the month following the third consecutive month in which prime exceeded ten percent, the maximum allowable permitted annual percentage rate set forth in this section shall increase to thirty-six percent plus each percentage point or fraction of a percentage point by which the prime rate of interest exceeded ten percent in the most recent month.

The director of the financial institutions h u » r division of the regulation and licensing department shall post e t 17h g e a notice on the division's website within ten days after the w l ni dh 18r provisions of Subsection F of this section become applicable.

=i =s 19h , e h The notice shall state the date on which any increase or at lu ig a e rb 20l decrease in the maximum allowable permitted annual percentage ae te m, mgh 21n d d i rate is effective.

d= r= eo 22h l ] b ,d i a º r H.

The maximum allowable permitted annual c e sr k= 23t e w d percentage rate for a loan to a consumer shall be determined as em a n bo 24d ofm the: date that the loan is made.

b r e t º o t n = .220134.3AIC March 18, 2021 (1:47pm) s k m e - 8 - e a n e d r e l u [ [E.]A I.d SJC/SB 66 of the date that the loan is made.

The[E.] provisionsI. of Subsections B and C of .220134.3 - 7 - SJC/SB 66 this section shall not apply to refund anticipation loans.

The provisions of Subsections B and C of this section shall not apply to refund anticipation loans.

Except as provided by Section 58-7-3.2 NMSA 1978, any rollover, renewal, refinance or modification of an existing loan agreement with a lender, except a modification without any additional cost to the consumer, shall constitute a new loan and shall require new disclosures pursuant to the federal Truth in Lending Act."Act. SECTION 4.

Hfl1º HJCº"»HJC HJCºK.

If a borrower is denied a loan at thirty-six h percent or less, calculated pursuant to Subsections D, E and F g o of this section, by a credit union or other lender that t hr g e regularly offers such loans to the public, that borrower may i k h r i s apply for a loan at a rate of up to ninety-nine calculated h , t, percent, pursuant to 12 CFR Part 1026, known as "Regulation Z";

e u g e b l provided that the borrower submits written or electronic proof e e h n d d i = = o h to the lender that within the previous thirty days, the l ] b ,d i a º e borrower applied for and was denied a loan at a rate not to r i = r t e w d exceed thirty-six percent.

Notwithstanding the provisions of m a n o d m :

b e d s º o t n = .220134.3AIC March 18, 2021 (1:47pm) s k m e - 9 - e a n e d r e l u [ A d SJC/SB 66 this subsection, a lender shall not offer a loan product within the state at a rate higher than thirty-six calculated percent, pursuant to the provisions of this subsection, unless such rate has been approved by the financial institutions division of the regulation and licensing department.

In considering approval of a loan product with rates higher than thirty-six calculated percent, the financial institutions division shall consider the cost to the lender of making the loan at the proposed rate and the risks to the lender of nonpayment.

The financial institutions division shall issue rules implementing the provisions of this subsection no later than January 1, 2022.

L.

All loans made pursuant to this section shall comply with the following:

(1) a loan shall not:

(a) be made for a term of greater than twenty-four months, not including any refinancing term;

h (b) accrue late fees, non-sufficient g o funds bank fees, origination fees, prepayment penalties or t hr g e i k charges for any ancillary product;

h r i s (c) accrue interest after ninety days of h , t, nonpayment;

e u g e b l e e h (d) be recoverable through wage n d d i = = o h garnishment or assignment;

or l ] b ,d i a º e (e) be eligible for refinance of the r i = r t e w d m a n o loan by the lender, unless the borrower is not in default on d m :

b e d s º o t n = .220134.3AIC March 18, 2021 (1:47pm) s k m e - 10 - e a n e d r e l u [ A d SJC/SB 66 the current loan and has made at least thirty percent of the payments and paid at least thirty percent of the principal;

(2) a loan shall be subject to underwriting and shall be reported on to at least one consumer credit reporting agency;

and (3) a lender shall provide a clear disclosure that complies with the federal Truth in Lending Act, including an amortization schedule."»HJC»Hfl1 Hfl1º"»Hfl1 SECTION 4.

CONSTRUCTION--DEFINITIONS.-- e t 17 A.

None of the provisions of the New Mexico Small w l n d 18 Loan Act of 1955 are amended or repealed by the New Mexico Bank = = 19 Installment Loan Act of 1959.

a l i a e r 20 B.

None of the provisions of the New Mexico Bank a t m m 21 Installment Loan Act of 1959 apply to the assignment or dh r e 22 purchase of retail installment contracts originated under the cg eo s k 23 provisions of Sections 58-19-1 through 58-19-14 NMSA 1978 or et ahr ng be 24 originated under the provisions of Sections 56-1-1 through ui [k h r i s 56-1-15 NMSA 1978.

.220134.3h -, 8t, - SJC/SB 66 C.

In the event of a conflict between a requirement e u g e b l of the New Mexico Bank Installment Loan Act of 1959 and a e e h n d d i = = o h requirement of the Home Loan Protection Act, the requirement of l ] b ,d i a º e the Home Loan Protection Act shall control.

r i = r t e w d D.

As used in the New Mexico Bank Installment Loan Actm ofa 1959:n o d m :

b e d s º o t n = .220134.3AIC March 18, 2021 (1:47pm) s k m e - 11 - e a n e d r e l u [ A d SJC/SB 66 Act of 1959:

e t 17 (a) public record information;

or w l n d 18 (b) credit account information from = = 19 persons who furnish that information regularly and in the a l i a e r 20 ordinary course of business;

a t m m 21 (3) "debit authorization" means an dh r e 22 authorization signed by a consumer to electronically transfer cg eo s k 23 or withdraw funds from the consumer's account for the specific et ahr ng be 24 purpose of repaying a loan;

ui [k h r i s [(3)] (4) "make a loan" means to originate a .220134.3h -, 9t, - SJC/SB 66 new loan agreement or to make any change to the terms of an e u g e b l existing loan agreement, including the principal amount e e h n d d i financed, the annual percentage rate, finance charge, fees or = = o h l ] b ,d i a º e payment schedule;

r i = r t e w d [(4)] (5) "month" means one-twelfth of a year;

[(5)]m (6)a "person"n includeso and individual,m copartner,: association, trust, corporation and any other legal entity;

b e d s º o t n = .220134.3AIC March 18, 2021 (1:47pm) s k m e - 12 - e a n e d r e l u [ A d SJC/SB 66 [(5)] (6) "person" includes an individual, copartner, association, trust, corporation and any other legal entity;

The director of the financial institutions division of the regulation and licensing department shall issue e t 17 and file as required by law interpretive regulations to w l n d 18 effectuate the purposes of the New Mexico Bank Installment Loan = = 19 Act of 1959.

In issuing, amending or repealing interpretive a l i a e r 20 regulations, the director shall issue the regulation amendment a t m m 21 or repeal of the regulation as a proposed regulation amendment dh r e 22 or repeal of a regulation and file it for public inspection in cg eo s k 23 the office of the director of the financial institutions et ahr ng be 24 division.

Distribution thereof shall be made to interested ui [k h r i s persons, and their comments shall be invited.

After the .220134.3h -, 10t, - SJC/SB 66 proposed regulation has been on file for not less than two e u g e b l months, the director may issue it as a final regulation by e e h n d d i filing as required by law.

Any person who is or may be = = o h l ] b ,d i a º e adversely affected by the adoption, amendment or repeal of a r i = r t e w d regulation under this section may file an appeal of that action inm thea districtn courto ind Santam Fe: county within thirty days after the filing of the adopted regulation, amendment or repeal as required by law.

b e d s º o t n = .220134.3AIC March 18, 2021 (1:47pm) s k m e - 13 - e a n e d r e l u [ A d SJC/SB 66 in the district court in Santa Fe county within thirty days after the filing of the adopted regulation, amendment or repeal as required by law.

DEFINITIONS.--The following words and terms e t 17 when used in the New Mexico Small Loan Act of 1955 have the w l n d 18 following meanings unless the context clearly requires a = = 19 different meaning.

The meaning ascribed to the singular form a l i a e r 20 applies also to the plural:

a t m m 21 A.

"consumer" means a person who resides in New dh r e 22 Mexico or who enters into a loan agreement in New Mexico;

cg eo s k 23 B.

"consumer reporting agency" means any person et ahr ng be 24 that, for monetary fees or dues or on a cooperative nonprofit ui [k h r i s basis, regularly engages in the practice of assembling or .220134.3h -, 11t, - SJC/SB 66 evaluating, and maintaining, for the purpose of furnishing e u g e b l consumer reports to third parties bearing on a consumer's e e h n d d i creditworthiness, credit standing or credit capacity, each of = = o h l ] b ,d i a º e the following regarding consumers:

r i = r t e w d (1) public record information;

or (2)m credita accountn informationo fromd personsm who: furnish that information regularly and in the ordinary course of business;

b e d s º o t n = .220134.3AIC March 18, 2021 (1:47pm) s k m e - 14 - e a n e d r e l u [ A d SJC/SB 66 (2) credit account information from persons who furnish that information regularly and in the ordinary course of business;

"installment loan" means a loan [in an amount e t 17 less than or equal to five thousand dollars ($5,000) that is to w l n d 18 be repaid in a minimum of four substantially equal payments of = = 19 principal and interest to pay off a loan in its entirety with a l i a e r 20 an initial stated maturity of not less than one hundred twenty a t m m 21 days to maturity.

"Installment loan" does not mean a refund dh r e 22 anticipation loan] that is not a refund anticipation loan and cg eo s k 23 is in an amount less than or equal to ten thousand dollars et ahr ng be 24 ($10,000) that is to be repaid:

ui [k h r i s (1) in a minimum of four substantially equal .220134.3h -, 12t, - SJC/SB 66 payments of principal and interest to pay off a loan in its e u g e b l entirety with an initial stated maturity of not less than one e e h n d d i hundred twenty days to maturity;

or = = o h l ] b ,d i a º e (2) in any number of payments and with any r i = r t e w d initial stated days to maturity that bears no finance charge as disclosedm pursuanta ton 12o C.F.R.d m :

b e d s º o t n = .220134.3AIC March 18, 2021 (1:47pm) s k m e - 15 - e a n e d r e l u [ A d SJC/SB 66 disclosed pursuant to 12 C.F.R.

It shall constitute and shall be construed as a grant of a revocable privilege only to be held and enjoyed subject to all the conditions, restrictions and limitations contained in the New Mexico Small Loan Act of 1955 and lawful regulations e t 17 promulgated by the director and not otherwise;

w l n d 18 H.

"licensee" means a person to whom one or more = = 19 licenses have been issued pursuant to the New Mexico Small Loan a l i a e r 20 Act of 1955 upon the person's written application electing to a t m m 21 become a licensee and consenting to exercise the privilege of a d r e 22 licensee solely in conformity with the New Mexico Small Loan ch eu s» kr 23 Act of 1955 and the lawful regulations promulgated by the et ah ng be 24 director under that act and whose name appears on the face of ul [i h r the license;

.220134.3i -s 13h -, SJC/SBe 66h I.

"make a loan" means to originate a new loan t u g e b l agreement or to make any change to the terms of an existing e e , gh n d d i loan agreement, including the principal amount financed, the = = o h l ] b ,d i a º r annual percentage rate, finance charge, fees or payment e r = t e w d schedule;

J.m a n o d m :

b r e t º o t n = .220134.3AIC March 18, 2021 (1:47pm) s k m e - 16 - e a n e d r e l u [ A d SJC/SB 66 J.

[K.][K. L.

] L.

and e[L. t 17 [L.] M.

"simple] interest"M. means a method of w l n d 18 calculating interest in which the amount of interest is = = 19 calculated based on the annual percentage rate disclosed in the a l i a e r 20 loan agreement and is computed only on the outstanding a t m m 21 principal balance of the loan." d r e 22 SECTION 6.

Section"simple 58-15-3interest" NMSAmeans 1978a (beingmethod Lawsof 1955,calculating cinterest ein swhich kthe 23amount Chapterof 128,interest Sectionis 3,calculated asbased amended)on the annual percentage rate disclosed in the loan agreement and is amendedcomputed toonly read:on the outstanding principal balance of the loan." h SECTION 6.

eSection a58-15-3 nNMSA b1978 24(being "58-15-3.Laws 1955, g o Chapter 128, Section 3, as amended) is amended to read:

APPLICABILITYt OFhr ACT--EXEMPTIONS--EVASIONS--g ue ["58-15-3. PENALTY.-- .220134.3 - 14 - SJC/SB 66 A.

AAPPLICABILITY personOF shallACT--EXEMPTIONS--EVASIONS-- noti engagek inh ther businessi ofs lendingPENALTY.-- inh amounts, oft, [fiveA. thousand dollars ($5,000)] ten thousand dollars ($10,000) or less for a loan without first having obtained a license from the director.

NothingA containedperson inshall thisnot subsectionengage shallin restrictthe orbusiness prohibitof ae licenseeu underg thee Newb Mexicol Smalllending Loanin Actamounts of 1955[five fromthousand makingdollars loans($5,000) in] anyten amounte undere theh Newn Mexicod Bankd Installmenti Loanthousand Actdollars of($10,000) 1959or inless accordancefor witha theloan provisionswithout offirst Section= 58-7-2= NMSAo 1978.h l ] b ,d i a º e having obtained a license from the director.

Nothing contained r i = r t e w d in this subsection shall restrict or prohibit a licensee under m a n o d m :

b e d s º o t n = .220134.3AIC March 18, 2021 (1:47pm) s k m e - 17 - e a n e d r e l u [ A d SJC/SB 66 the New Mexico Small Loan Act of 1955 from making loans in any amount under the New Mexico Bank Installment Loan Act of 1959 in accordance with the provisions of Section 58-7-2 NMSA 1978.

Nothing in the New Mexico Small Loan Act of 1955 shall apply to a person making individual advances of [five thousand dollars ($5,000)] ten thousand dollars ($10,000) or less under a written agreement providing for a total loan or line of credit in excess of [five thousand dollars ($5,000)]($5,000) ] ten thousand dollars ($10,000).($10,000) .

A banking corporation, savings and loan association or credit union operating under the laws of the e t 17 United States or of a state shall be exempt from the licensing w l n d 18 requirements of the New Mexico Small Loan Act of 1955, nor = = 19 shall that act apply to business transacted by any person under a l i a e r 20 the authority of and as permitted by any such law nor to any a t m m 21 bona fide pawnbroking business transacted under a pawnbroker's d r e 22 license nor to bona fide commercial loans made to dealers upon ch eu s» kr 23 personal property held for resale.

Nothing contained in the et ah ng be 24 New Mexico Small Loan Act of 1955 shall be construed as ul [i h r abridging the rights of any of those exempted from the .220134.3i -s 15h -, SJC/SBe 66h operations of that act from contracting for or receiving t u g e b l interest or charges not in violation of an existing applicable e e , gh n d d i statute of this state.

= = o h l ] b ,d i a º r D.

The provisions of Subsection A of this section e r = t e w d apply to:

(1)m a personn whoo ownsd anm interest,: legal or equitable, in the business or profits of a licensee and whose name does not specifically appear on the face of the license, except a stockholder in a corporate licensee;

[and]b (2)r e t º o t n = .220134.3AIC March 18, 2021 (1:47pm) s k m e - 18 - e a n e d r e l u [ A d SJC/SB 66 (1) a person who seeksowns toan evadeinterest, itslegal applicationor byequitable, anyin device,the subterfugebusiness or pretenseprofits whatsoever,of includinga butlicensee and whose name does not therebyspecifically limitingappear on the generalityface of the foregoing:license, except a stockholder in a corporate licensee;

[and ] Hfl1ºHJCºand»HJC»Hfl1 (2) a person who seeks to evade its application by any device, subterfuge or pretense whatsoever, including but not thereby limiting the generality of the foregoing:

e t 17 (b) the use of collateral or related w l n d 18 sales or purchases of goods or services or agreements to sell = = 19 or purchase, whether real or pretended;

a l i a e r 20 (c) receiving or charging compensation ah t m m 21 for goods or services, whether or not sold, delivered or dg ro e 22 provided;

[and][and c] et shr kg 23e (d) the real or pretended negotiation, ei ak nh br 24i s arrangement or procurement of a loan through any use or uh [, t, activity of a third person, whether real or fictitious;

.220134.3e -u 16g -e SJC/SBb 66l (e) making loans disguised as a personal e e h n d d i property sale and leaseback transaction;

= = o h l ] b ,d i a º e Hfl1ºHJCºand»HJC»Hfl1 r i = r t e w d (f) disguising loan proceeds as a cash rebatem fora then pretextualo installmentd salem of: goods or services;

andb (g)e making,d offering,s assistingº oro arrangingt an debtor= to.220134.3AIC obtainMarch a18, loan2021 with(1:47pm) as greaterk ratem ore interest,- consideration19 or- chargee thana isn permittede byd Chapterr 58e NMSAl 1978u through[ anyA method,d includingSJC/SB mail,66 telephone,rebate internetfor orthe anypretextual electronicinstallment means,sale regardless of whethergoods theor personservices hasHfl1ºHJCº; a physical location in the state;

and»HJC»Hfl1 Hfl1º;

and»Hfl1 Hfl1º HJCº(g) making, offering, assisting or arranging a debtor to obtain a loan with a greater rate or interest, consideration or charge than is permitted by Chapter 58 NMSA 1978 through any method, including mail, telephone, internet or any electronic means, regardless of whether the person has a physical location in the state;

(a) the person holds, acquires or e t 17 maintains, directly or indirectly, the predominant economic w l n d 18 interest in the loan;

= = 19 (b) the person markets, brokers, ah l i a e r 20 arranges or facilitates the loan and holds the right, ag to m m 21 requirement or first right of refusal to purchase loans, dt rhr g e 22i k receivables or interests in the loans;

or ch er i s k 23 (c) the totality of the circumstances eh a, nt, b 24 indicate that the person is the lender and the transaction is e u [g e b l e e h structured to evade the requirements of the New Mexico Small .220134.3n -d 17d -i SJC/SB= 66= o h Loan Act of 1955.

In deciding whether the totality of the l ] b ,d i a º e circumstances indicate that the person is a lender and a r i = r t e w d m a n o transaction is structured to evade the requirements of the New d m :

b e d s º o t n = .220134.3AIC March 18, 2021 (1:47pm) s k m e - 20 - e a n e d r e l u [ A d SJC/SB 66 Mexico Small Loan Act of 1955, all relevant factors may be considered, including where the person:

1) indemnifies, insures or protects an exempt entity for any costs or risks related to the loan;

2) predominantly designs, controls or operates the loan program;

or 3) purports to act as an agent, service provider or in another capacity for an exempt entity while acting directly as a lender in other states»HJC»Hfl1 Hfl1º (g) making, offering, assisting or arranging a debtor to obtain a loan with a greater rate or interest, consideration or charge than is permitted by Chapter 58 NMSA through any method, including mail, telephone, internet or any electronic means, regardless of whether the person has a physical location in the state;

and (3) Hfl1ºif the loan exceeds the rate permitted by Chapter 58 NMSA 1978,»Hfl1 a person purporting to act as an agent, service provider or in another capacity for h another entity that is exempt from the New Mexico Small Loan u » r Act of 1955, if, among other things:

t h g e (a) the person holds, acquires or l i h r i s maintains, directly or indirectly, the predominant economic h , e h interest in the loan;

t u g e b l (b) the person markets, brokers, e e , gh n d d i = = o h arranges or facilitates the loan and holds the right, l ] b ,d i a º r requirement or first right of refusal to purchase loans, e r = t e w d m a n o receivables or interests in the loans;

or d m :

b r e t º o t n = .220134.3AIC March 18, 2021 (1:47pm) s k m e - 21 - e a n e d r e l u [ A d SJC/SB 66 (c) the totality of the circumstances indicate that the person is the lender and the transaction is structured to evade the requirements of the New Mexico Small Loan Act of 1955.

or 3) purports to act as an agent, service provider or in another capacity for an exempt entity while acting directly as a lender in other states.states»Hfl1 .

A person, copartnership, trust or a trustee or beneficiary thereof or an association or corporation or a member, officer, director, agent or employee thereof who h violates or participates in the violation of a provision of u » r Subsection A of this section is guilty of a petty misdemeanor t h g e and upon conviction shall be sentenced pursuant to the el ti 17h r i s provisions of Subsection B of Section 31-19-1 NMSA 1978.

A wh l, ne dh 18 contract or loan in the making or collection of which an act is =t =u 19g e b l done that violates Subsection A or D of this section or Section ae le , gh n d d i a= e= ro 20h 58-15-17 or 58-15-20 NMSA 1978 is void and the lender has no al t] mb m,d 21i a º r right to collect, receive or retain any principal, interest or de r = t e 22w d charges whatsoever.

cm ea sn ko 23d F.m :

Ab loanr ine ant amountº equalo tot [five thousand e a n b= 24.220134.3AIC dollarsMarch ($5,000)]18, ten2021 thousand(1:47pm) dollarss ($10,000)k orm lesse shall- u22 [- bee madea onlyn pursuante tod ther Newe Mexicol Banku Installment[ LoanA .220134.3d - 18 - SJC/SB 66 ActF. of 1959 or the New Mexico Small Loan Act of 1955.

A loan in an amount equal to [five thousand dollars ($5,000)] ten thousand dollars ($10,000) or less shall be made only pursuant to the New Mexico Bank Installment Loan Act of 1959 or the New Mexico Small Loan Act of 1955.

At least once each year, the director or the director's authorized representative shall make an examination of the place of business of each licensee and the loans, h transactions, books, papers and records of the licensee insofar g o as they pertain to the business licensed under the New Mexico t hr g e Small Loan Act of 1955 as the director may deem necessary.

The ei tk 17h r i s licensee shall pay to the director for such annual examination wh l, nt, d 18 a fee of two hundred dollars ($200).

=e =u 19g e b l B.

Within a reasonable time after the completion of ae le ih an ed rd 20i an examination of a licensed office, the director shall mail to a= t= mo mh 21l ] b ,d i a º e the licensee a copy of the report of the examination, together dr i = r t e 22w d with any comments, exceptions, objections or criticisms of the cm e s k 23 director concerning the conduct of the licensee and the e a n bo 24d operationm of: the licensed office.

b e d s º o t n = .220134.3AIC March 18, 2021 (1:47pm) s k m e - 23 - e a n e d r e l u [ C.A d SJC/SB 66 director concerning the conduct of the licensee and the operation of the licensed office.

ForC. the purpose of discovering violations of the .220134.3 - 19 - SJC/SB 66 New Mexico Small Loan Act of 1955 or of securing information lawfully required under that act, the director or the director's authorized representative may at any time investigate the business and examine the books, accounts, papers and records used therein, including income tax returns or other reports filed in the office of the director of the revenue processing division of the taxation and revenue department of:

For the purpose of discovering violations of the New Mexico Small Loan Act of 1955 or of securing information lawfully required under that act, the director or the director's authorized representative may at any time investigate the business and examine the books, accounts, papers and records used therein, including income tax returns or other reports filed in the office of the director of the revenue processing division of the taxation and revenue department of:

and (3) any person [whom][whom ] who the director has h u » r reasonable cause to believe is violating any provision of the t h g e New Mexico Small Loan Act of 1955, whether the person claims to el ti 17h r be within the authority or beyond the scope of that act.

wi ls nh d, 18e h D.

For the purposes of this section, a person who =t =u 19g e b l advertises, solicits or makes any representation as being ae le i, agh en rd 20d i willing to make loan transactions in any amount, except a= t= mo mh 21l ] b ,d i a º r persons, financial institutions or lending agencies operating de r = t e 22w d under charters or licenses issued by a state or federal agency cm e s k 23 or under any special statute, shall be subject to investigation e a n bo 24d underm the: New Mexico Small Loan Act of 1955 and shall be u [ presumed to be engaged in the business described in Subsection .220134.3 - 20 - SJC/SB 66 A of Section 58-15-3 NMSA 1978 as to any loans of [five thousand dollars ($5,000)] ten thousand dollars ($10,000) or less.

b r e t º o t n = .220134.3AIC March 18, 2021 (1:47pm) s k m e - 24 - e a n e d r e l u [ A d SJC/SB 66 or under any special statute, shall be subject to investigation under the New Mexico Small Loan Act of 1955 and shall be presumed to be engaged in the business described in Subsection A of Section 58-15-3 NMSA 1978 as to any loans of [five thousand dollars ($5,000)] ten thousand dollars ($10,000) or less.

If the licensee is an individual, corporation, trust or association, the licensee shall keep in at least one office for information of the director a record of the several individuals, firms, beneficiaries of any trust and corporations deriving or h u » r receiving any part of the benefits, net income or profits from t h g e the operation of the licensee within New Mexico.

el ti 17h r F.

For the purposes of this section, the director wi ls nh d, 18e h or the director's authorized representative shall have and be =t =u 19g e b l given free access to the offices and places of business, files, ae le i, agh en rd 20d i safes and vaults of all licensees and shall have authority to a= t= mo mh 21l ] b ,d i a º r require the attendance of any person and to examine the person de r = t e 22w d under oath relative to such loans or business or to the subject cm e s k 23 matter of any examination, investigation or hearing as provided e a n bo 24d inm the: New Mexico Small Loan Act of 1955.

Noticesb tor appeare ut [º beforeo thet directorn for= examination.220134.3AIC underMarch oath18, may2021 be(1:47pm) serveds byk .220134.3m e - 2125 - e a n e d r e l u [ A d SJC/SB 66 registeredmatter mail.of any examination, investigation or hearing as provided in the New Mexico Small Loan Act of 1955.

Notices to appear before the director for examination under oath may be served by registered mail.

The district court whose aid is so invoked by the director may, in case of contumacy or h u » r refusal to obey any order of the district court issued to t h g e compel the attendance of the person or the production of books, el ti 17h r records, written instruments and documents, punish the person wi ls nh d, 18e h as for contempt of court.

=t =u 19g e b l G.

The director shall prescribe rules of procedure ae le i, agh en rd 20d i for all hearings, examinations or investigations provided for a= t= mo mh 21l ] b ,d i a º r in the New Mexico Small Loan Act of 1955.

The director is not de r = t e 22w d bound by the usual common law or statutory rules of evidence or cm e s k 23 by any technical or formal rules of procedure or pleading and e a n bo 24d specificationm of: charges other than as specifically provided in u [ the New Mexico Small Loan Act of 1955 but may conduct hearings, .220134.3 - 22 - SJC/SB 66 examinations and investigations in the manner best calculated to ascertain the substantial rights of the parties interested.

b r e t º o t n = .220134.3AIC March 18, 2021 (1:47pm) s k m e - 26 - e a n e d r e l u [ A d SJC/SB 66 by any technical or formal rules of procedure or pleading and specification of charges other than as specifically provided in the New Mexico Small Loan Act of 1955 but may conduct hearings, examinations and investigations in the manner best calculated to ascertain the substantial rights of the parties interested.

Depositions may be taken with or without a commission, and written interrogatories may be submitted in the same manner and on the same grounds provided by law for the taking of depositions or submission of written interrogatories h u » r in civil actions pending in the district courts of this state.

t h g e J.

Each witness who appears before the director by el ti 17h r the director's order shall receive the fees and mileage wi ls nh d, 18e h provided for witnesses in civil actions in the district court.

=t =u 19g e b l Fees and mileage shall be paid by the state, but no witness ae le i, agh en rd 20d i subpoenaed at the instance of parties other than the director a= t= mo mh 21l ] b ,d i a º r is entitled to compensation from the state for attendance or de r = t e 22w d mileage unless the director certifies that the witness' cm ea sn ko 23d testimonym is: material.

b r e t º o t n = .220134.3AIC March 18, 2021 (1:47pm) s k m e - 27 - e a n be 24d K.r e l u [ A d SJC/SB 66 testimony is material.

WheneverK. the director has reasonable cause to u [ believe that a person is violating a provision of the New .220134.3 - 23 - SJC/SB 66 Mexico Small Loan Act of 1955, the director may, in addition to all actions provided for in that act and without prejudice thereto, enter an order requiring the person to desist or to refrain from the violation.

Whenever the director has reasonable cause to believe that a person is violating a provision of the New Mexico Small Loan Act of 1955, the director may, in addition to all actions provided for in that act and without prejudice thereto, enter an order requiring the person to desist or to refrain from the violation.

In addition to all other means provided by law for the enforcement of a temporary restraining order, temporary injunction or final injunction, the court in which such action is brought shall have power and jurisdiction to impound and to appoint a receiver for the property and business of the defendants, h u » r including books, papers, documents and records pertaining t h g e thereto or so much thereof as the court may deem reasonably el ti 17h r necessary to prevent further violations of the New Mexico Small wi ls nh d, 18e h Loan Act of 1955 through or by means of the use of the property =t =u 19g e b l and business.

The receiver, when appointed and qualified, ae le i, agh en rd 20d i shall have powers and duties as to custody, collection, a= t= mo mh 21l ] b ,d i a º r administration, winding up and liquidation of the property and de r = t e 22w d business as are from time to time conferred upon the receiver cm e s k 23 by the court." e a n bo 24d SECTIONm 8.:

Sectionb 58-15-10.1r NMSAe 1978t (beingº Lawso 2011,t n = .220134.3AIC March 18, 2021 (1:47pm) s k m e - 28 - e a n e d r e l u [ ChapterA 105,d SectionSJC/SB 1,66 asby amended)the iscourt." amendedSECTION to8. read:

.220134.3Section -58-15-10.1 24NMSA -1978 SJC/SB(being 66Laws "58-15-10.1.2011, Chapter 105, Section 1, as amended) is amended to read:

"58-15-10.1.

h (c) the total dollar amount of principal g o loaned for that product;

t hr g e (d) the percentage of the total dollar ei tk 17h r i s amount of all principal for that product that was repaid;

and wh l, nt, d 18 (e) the total number of individual =e =u 19g e b l borrowers who took out this type of loan product;

ae le ih an ed rd 20i (2) the total number of loan transactions a= t= mo mh 21l ] b ,d i a º e entered into for each loan product in the following amounts:

dr i = r t e 22w d (a) five hundred dollars ($500) or less;

cm e s k 23 (b) five hundred one dollars ($501) to e a n bo 24d onem thousand: dollars ($1,000);

ub [e (c)d ones thousandº oneo dollarst ($1,001)n to= .220134.3.220134.3AIC March 18, 2021 (1:47pm) s k m e - 2529 - e a n e d r e l u [ A d SJC/SB 66 three(b) five hundred one dollars ($501) to one thousand dollars ($3,000);($1,000);

[and](c) (d)one three thousand one dollars ($3,001)($1,001) to fivethree thousand dollars ($5,000);($3,000);

[and ] (d) three thousand one dollars ($3,001) to five thousand dollars ($5,000);

(a) less than or equal to [thirty-six][thirty-six ] ten percent;

(b) more than [thirty-six][thirty-six ] ten percent h through [one hundred]hundred ] eighteen percent;

g o (c) more than [one hundred]hundred ] eighteen t hr g e percent through [one hundred fifty] thirty-six percent;

andi ek th 17r i s Hfl1ºand»Hfl1 h , t, (d) [more than one hundred fifty percent we lu ng de 18b l through one hundred seventy-five percent] more than thirty-six =e =e 19h n d d i percent if a permitted annual percentage rate is subject to an a= = o h l ] b ,d i a º e r 20 elevated calculation pursuant to Subsection L of Section ar i = r t me mw 21d 58-15-17 NMSA 1978 or Subsection F of Section 58-7-7 NMSA 1978;

dm ra en 22o (4)d form each: loan product, the following c e s k 23 aggregate amounts of fees and interest:

b e ad s º o t n b= 24.220134.3AIC (a)March a18, list2021 of(1:47pm) eachs feek chargedm bye the- 30 - e a n e d r e l u [ lenderA andd SJC/SB 66 Hfl1ºand (e) less than or equal to ninety-nine percent for a descriptionloan in an amount of eachone feethousand productone hundred dollars ($1,100) or type,less includingpursuant .220134.3to -Subsection 26J -of SJC/SBSection 6658-15-17 feesNMSA charged1978 or Subsection D of Section 58-7-7 NMSA 1978;»Hfl1 (4) for each loan originationproduct, andthe creditfollowing insurance;aggregate amounts of fees and interest:

(a) a list of each fee charged by the lender and a description of each fee product or type, including fees charged for loan origination and credit insurance;

h (a) the number of loans for which the g o original term of the loan was:

1) less than one hundred twenty t hr g e days;

2) between one hundred twenty days and three hundred i k h r i s sixty-five days;

3) between three hundred sixty-five days and h , t, seven hundred thirty-one days;

4) between seven hundred thirty- e u g e b l one days and five years;

e e h n d d i = = o h (b) for each item set forth in l ] b ,d i a º e Subparagraph (a) of this paragraph, the average actual r i = r t e w d repayment time for the given loan product and loan term;

and (c)m fora each item set forth in e t 17 Subparagraph (a) of this paragraph, the number of loans for w l n o d 18m which: payments were due:

b e d s º o t n = .220134.3AIC March 18, 2021 (1:47pm) s k m e - 31 - e a n e d r e l u [ A d SJC/SB 66 (c) for each item set forth in Subparagraph (a) of this paragraph, the number of loans for which payments were due:

2) every four = = 19 weeks;

a l i a e r 20 (6) the number of borrowers who took out one a t m m 21 or two loans with the lender in the previous calendar year, and d r e 22 the percentage of all borrowers who took out one or two loans c e s k 23 with the lender in the previous calendar year;

e a n b 24 (7) the number of borrowers who took out three u [ or more loans with the lender in the previous calendar year, .220134.3 - 27 - SJC/SB 66 and the percentage of all borrowers who took out three or more loans with the lender in the previous calendar year;

(8) for each loan product, the number of loans that have been repaid in full without an extension, renewal, refinance, rollover or new loan within thirty days of repaying that loan, and for each loan product, the percentage of all borrowers who have repaid their loans in full without an h u » r extension, renewal, refinance, rollover or new loan within t h g e thirty days of repaying that loan;

l i h r (9) for each loan product, the number of i s h , e h borrowers who extended, renewed, refinanced or rolled over t u g e b l their loans prior to or at the same time as paying their loan e e , gh n d d i balance in full, or took out a new loan within thirty days of repaying= that= loan,o andh forl each] loanb product,,d thei percentagea ofº allr borrowersrepaying whothat extended,loan, renewed,and refinancedfor oreach rolledloan overproduct, theirthe loanspercentage priore tor or= att thee samew timed asof payingall theborrowers ewho textended, 17renewed, loanrefinanced balance in full, or tookrolled outm a new loan within thirty days w l n o d 18m of: repaying that loan;

=b r e t º o t n = 19.220134.3AIC (10)March for18, each2021 loan(1:47pm) product,s thek totalm numbere a- l32 i- e a n e d r 20e ofl loansu for[ whichA ad lateSJC/SB payment66 feeover wastheir chargedloans andprior theto aor tat mthe msame 21time percentageas ofpaying the totalloan loansbalance forin whichfull, or took out a latenew paymentloan feewithin wasthirty ddays rof erepaying 22that charged;loan;

c(10) e s k 23 (11) for each loan product, the total number e a n b 24 of loans for which a late payment fee was charged more than u [ once over the term of the contract, and the percentage of the .220134.3 - 28 - SJC/SB 66 total loans for which a late payment fee was chargedcharged; more than once over the term of the contract;

(11) for each loan product, the total number of loans for which a late payment fee was charged more than once over the term of the contract, and the percentage of the total loans for which a late payment fee was charged more than once over the term of the contract;

(13) for each loan product, the dollar amount h u » r of loan principal and accrued interest that was charged-off or t h g e written-off, and the number of borrowers for which the lender l i h r charged-off or wrote-off loan principal and accrued interest;

i s h , e h (14) the number of loans and percentage of all t u g e b l borrowers the lender filed action against for default;

e e , gh n d d i (15) the total number of loans secured by a = = o h l ] b ,d i a º r motor vehicle and the number of those loans for which the motor e r = t e w d vehicle was repossessed;

(16)m thea total number of loans secured by e t 17 non-motor vehicle personal property and the number of those w l n o d 18m loans: for which the non-motor vehicle personal property was = = 19 repossessed;

ab lr ie at eº ro 20t (17)n the= total.220134.3AIC numberMarch and18, percentage2021 of(1:47pm) as tk m me 21- borrowers33 of- alle loana productsn whosee sourcesd ofr income,e asl u [ A d rSJC/SB e66 22(16) providedthe bytotal borrowersnumber inof theloans loansecured originationby process,non-motor includedvehicle cpersonal eproperty sand kthe 23number aof means-testedthose publicloans benefitfor aswhich definedthe bynon-motor 8vehicle U.S.C.personal property was repossessed;

Section(17) ethe total number and percentage of borrowers of all loan products whose sources of income, as provided by borrowers in the loan origination process, included a nmeans-tested bpublic 24benefit 1613(c);as defined by 8 U.S.C.

uSection [1613(c); (18) the total number and percentage of .220134.3 - 29 - SJC/SB 66 borrowers of all loan products who are aged sixty-five or older;

(18) the total number and percentage of borrowers of all loan products who are aged sixty-five or older;

and (20) the percentage of all borrowers who took h out a refund anticipation loan who were eligible for a federal g o earned income tax credit.

t hr g e B.

The reports required pursuant to Subsection A of i k h r i s this section shall be submitted to the director on or before h , t, the fifteenth day of April each year.

e u g e b l C.

The reports required pursuant to Subsection A of e e h n d d i this section shall be accompanied by a sworn statement by the = = o h l ] b ,d i a º e licensee under penalty of perjury that the report is complete r i = r t e w d and accurate.

D.m a n o d m :

Ab licenseee thatd failss toº timelyo submitt completen e= t.220134.3AIC 17March and18, accurate2021 reports(1:47pm) ass requiredk pursuantm toe Subsection- A34 of- we la n e d 18r thise sectionl onu or[ beforeA thed fifteenthSJC/SB day66 ofD. April may:

=A =licensee 19that (1)fails be fined an amount not to exceedtimely onesubmit acomplete land iaccurate areports eas rrequired 20pursuant thousandto fiveSubsection hundredA dollarsof ($1,500)this persection dayon foror eachbefore day a t m m 21 after the fifteenth day of April,April amay: complete and accurate d r e 22 report is not filed;

and(1) cbe efined san kamount 23not (2)to haveexceed aone licensethousand requiredfive pursuanthundred todollars the($1,500) eper aday nfor beach 24day Newafter Mexicothe Smallfifteenth Loanday Act of 1955April, suspendeda pursuantcomplete toand Sectionaccurate ureport [is 58-15-8not NMSAfiled; 1978." .220134.3 - 30 - SJC/SB 66 SECTION 9.

and (2) have a license required pursuant to the New Mexico Small Loan Act of 1955 suspended pursuant to Section 58-15-8 NMSA 1978." SECTION 9.

For each installment loan issued pursuant to Paragraph (1) of Subsection F of Section 58-15-2 NMSA 1978 and refund anticipation loan made pursuant to the New Mexico Small h Loan Act of 1955, a lender shall report to a consumer reporting g o agency the terms of the loan and the borrower's performance t hr g e pursuant to those terms.

i k h r i s B.

For each installment loan issued pursuant to h , t, Paragraph (2) of Subsection F of Section 58-15-2 NMSA 1978, a e u g e b l lender may report to a consumer reporting agency the terms of e e h n d d i the loan and the borrower's performance pursuant to those = = o h l ] b ,d i a º e terms.

r i = r t e w d C.

Any lender making a report to a consumer reportingm agencya pursuant to this section shall report both e t 17 positive and negative performance by the borrower." w l n o d 18m SECTION: 10.

Sectionb 58-15-12e NMSAd 1978s (beingº Lawso 1955,t =n = 19.220134.3AIC ChapterMarch 128,18, Section2021 12,(1:47pm) ass amended)k ism amendede - 35 - e a n e d r e l u [ A d SJC/SB 66 reporting agency pursuant to read:this section shall report both positive and negative performance by the borrower." SECTION 10.

aSection l58-15-12 iNMSA a1978 e(being rLaws 201955, "58-15-12.Chapter 128, Section 12, as amended) is amended to read:

ADVERTISING.--A"58-15-12. licensee or other person a t m m 21 subject to the New Mexico Small Loan Act of 1955 shall not d r e 22 advertise, display, distribute or broadcast or cause or permit c e s k 23 to be advertised, displayed, distributed or broadcast in any e a n b 24 manner whatsoever a false, misleading or deceptive statement or u [ representation with regard to the charges, terms or conditions .220134.3 - 31 - SJC/SB 66 for loans in the amount or of the value of [five thousand dollars ($5,000)] ten thousand dollars ($10,000) or less.

ADVERTISING.--A licensee or other person subject to the New Mexico Small Loan Act of 1955 shall not advertise, display, distribute or broadcast or cause or permit to be advertised, displayed, distributed or broadcast in any manner whatsoever a false, misleading or deceptive statement or representation with regard to the charges, terms or conditions for loans in the amount or of the value of [five thousand dollars ($5,000)] ten thousand dollars ($10,000) or less.

The director may permit or require licensees to refer in their advertising to the fact that their h u » r business is under state supervision, subject to conditions t h g e imposed by the director to prevent erroneous impressions as to l i h r the scope or degree of protection provided by the New Mexico i s h , e h Small Loan Act of 1955." t u g e b l SECTION 11.

Section 58-15-17 NMSA 1978 (being Laws 1955, e e , gh n d d i Chapter 128, Section 15, as amended) is amended to read:

= = o h l ] b ,d i a º r "58-15-17.

REQUIREMENTS FOR MAKING AND PAYING OF e r = t e w d LOANS--INCOMPLETE INSTRUMENTS--LIMITATIONS ON CHARGES AFTER JUDGMENTm ANDa INTEREST.--n eo td 17m A.:

b r e t º o t n = .220134.3AIC March 18, 2021 (1:47pm) s k m e - 36 - e a n e d r e l u [ A d SJC/SB 66 JUDGMENT AND INTEREST.-- A.

w l n d 18 (1) at the time a consumer becomes = = 19 contractually obligated on a loan pursuant to the New Mexico a l i a e r 20 Small Loan Act of 1955, deliver to the borrower or, if there a t m m 21 are two or more borrowers on the same obligation, to one of d r e 22 them, a statement on which shall be printed a copy of Section c e s k 23 58-15-14.1 NMSA 1978 and which shall disclose in clear and e a n b 24 distinct terms:

u [ (a) the amount of the loan;

.220134.3 - 32 - SJC/SB 66 (b) the date the loan was made;

(e) the name and address of the h licensee;

g o (f) the name of the person primarily t hr g e obligated for the loan;

i k h r i s (g) the amount of principal;

h , t, (h) the annual percentage rate as e u g e b l disclosed pursuant to 12 CFR Part 1026, known as "Regulation e e h n d d i Z", and the amount in dollars and cents;

= = o h l ] b ,d i a º e (i) all other disclosures required r i = r t e w d pursuant to state and federal law;

and (j)m thea charge for any other item e t 17 allowable and included pursuant to the New Mexico Small Loan w l n o d 18m Act: of 1955, so stated as to clearly show the allocation of = = 19 each item included;

ab le id as eº ro 20t (2)n for= each.220134.3AIC paymentMarch made18, on2021 account(1:47pm) ofs ak am te m- m37 21- loan,e givea ton thee persond makingr thee paymentl au plain[ andA d rSJC/SB e66 22(j) completethe receiptcharge specifyingfor theany dateother item allowable and amountincluded ofpursuant to the payment,New cMexico eSmall sLoan kAct 23of the1955, amountso appliedstated as to interestclearly andshow principal and the balanceallocation eof aeach nitem bincluded; 24 unpaid.

When(2) paymentfor iseach payment made inon anyaccount otherof mannera thanloan, bygive to the uperson [making borrower in person, by an agent of the borrowerpayment ora byplain checkand orcomplete .220134.3receipt -specifying 33the -date SJC/SBand 66amount moneyof order, the licenseepayment, shall mail the receiptamount applied to theinterest borrower'sand lastprincipal known address or retain and deliver the receiptbalance uponunpaid. request of the borrower.

When payment is made in any other manner than by the borrower in person, by an agent of the borrower or by check or money order, the licensee shall mail the receipt to the borrower's last known address or retain and deliver the receipt upon request of the borrower.

A borrower may withdraw authorization for electronic delivery of h receipts in writing at any time.

A licensee shall not require g o a borrower to receive receipts electronically.

The licensee t hr g e shall maintain a copy of each receipt in the office of the i k h r i s licensee as a part of the licensee's records;

and h , t, (3) upon repayment of the loan in full, mark e u g e b l plainly every note and promise to pay signed by any borrower e e h n d d i with the word "paid" or "canceled" and promptly file or record = = o h l ] b ,d i a º e a release of any mortgage if the mortgage has been recorded, r i = r t e w d restore any pledge and cancel and return any note and any assignmentm givena ton theo licensee.d m :

Ab licenseee mayd marks andº eo t 17n return= a.220134.3AIC copyMarch of18, the2021 note,(1:47pm) promises tok paym ore any- assignment38 if- we la n e d 18r thee copyl accuratelyu reproduces[ theA completed original.SJC/SB 66 assignment given to the licensee.

=A =licensee 19may B.mark and return a copy of the note, promise to pay or any assignment if the copy accurately reproduces the complete original.

AB. licensee shall not take a note or promise to a l i a e r 20 pay that does not disclose the amount of the loan, a schedule a t m m 21 of payments, or a description thereof, and the agreed charge or d r e 22 rate of charge or any instrument in which blanks are left to be c e s k 23 filled in after execution.

eA licensee shall not take a nnote bor 24promise C.to pay that does not disclose the amount of the loan, a schedule of payments, or a description thereof, and the agreed charge or rate of charge or any instrument in which blanks are left to be filled in after execution.

AC. judgment against a party on a loan made u [ pursuant to the New Mexico Small Loan Act of 1955 shall not .220134.3 - 34 - SJC/SB 66 include, and the loan shall not include, from the date of the judgment, charges against a party to the loan other than costs, attorney fees and post-judgment interest as provided by law.

A judgment against a party on a loan made pursuant to the New Mexico Small Loan Act of 1955 shall not include, and the loan shall not include, from the date of the judgment, charges against a party to the loan other than costs, attorney fees and post-judgment interest as provided by law.

A loan made pursuant to the New Mexico Small Loan Act of 1955 that is filed and approved as a claim in any bankruptcy proceeding shall bear interest at the rate of ten percent per year beginning on the ninetieth day following the h u » r date of adjudication.

This limitation shall not apply when the t h g e bankrupt is not discharged in bankruptcy or to any obligation l i h r not dischargeable under the provisions of the United States i s h , e h Bankruptcy Code presently in force.

t u g e b l E.

A loan made pursuant to the provisions of the e e , gh n d d i New Mexico Small Loan Act of 1955 shall not bear interest in = = o h l ] b ,d i a º r excess of ten percent per year on the unpaid principal balance e r = t e w d of a loan after ninety days following the date of the death of them borrower.a n o d m :

b r e t 17º F.o t n = .220134.3AIC March 18, 2021 (1:47pm) s k m e - 39 - e a n e d r e l u [ A d SJC/SB 66 the borrower.

AF. loan made pursuant to the New Mexico Small w l n d 18 Loan Act of 1955 shall not bear interest in excess of ten = = 19 percent per year upon the unpaid principal balance of the loan a l i a e r 20 after twelve months following the date of maturity of the loan.

aA tloan mmade mpursuant 21to G.the New Mexico Small Loan Act of 1955 shall not bear interest in excess of ten percent per year upon the unpaid principal balance of the loan after twelve months following the date of maturity of the loan.

AG. lender shall not make a loan pursuant to the d r e 22 New Mexico Small Loan Act of 1955 if a loan has an initial c e s k 23 stated maturity of less than one hundred twenty days unless the e a n b 24 loan is a refund anticipation loan.

uA [lender H.shall not make a loan pursuant to the New Mexico Small Loan Act of 1955 if a loan has an initial stated maturity of less than one hundred twenty days unless the loan is a refund anticipation loan.

AH. lender shall not make a loan pursuant to the .220134.3 - 35 - SJC/SB 66 New Mexico Small Loan Act of 1955 unless the loan is an installment loan or a refund anticipation loan.

A lender shall not make a loan pursuant to the New Mexico Small Loan Act of 1955 unless the loan is an installment loan or a refund anticipation loan.

A lender shall not make a loan pursuant to the New Mexico Small Loan Act of 1955, other than a refund anticipation loan, unless the loan is repayable in a minimum of four substantially equal installment payments of principal and h interest.

g o J.

AHfl1ºHJCºA»HJC HJCºExcept as provided in t hr g e Subsection Q of this section, a»HJC»Hfl1 Hfl1ºA»Hfl1 lender i k h r i s shall not make a loan pursuant to the New Mexico Small Loan Act h , t, of 1955 that has [an][an ] a permitted annual percentage rate e u g e b l greater than [one hundred seventy-five percent, calculated e e h n d d i pursuant to 12 CFR Part 1026, known as "Regulation Z"] thirty-six= percent,= calculatedo pursuanth tol this] subsectionb and,d Subsectionsi Ka andº Le ofHfl1ºthirty-six thispercent»Hfl1 section.Hfl1º:

Ther calculationi of= ther permittedt annuale percentagew rated shall:(1) ninety-nine percent for a loan in an m a n o d m :

(1)b includee financed chargess asº definedo int 12n CFR= Part.220134.3AIC 1026,March known18, as2021 "Regulation(1:47pm) Z",s chargesk form any e t- 1740 ancillary- producte ora servicen solde ord anyr feee chargedl inu w[ lA n d 18SJC/SB connection66 oramount concurrent with the extension of credit,one anythousand =one =hundred 19dollars credit($1,100) insurance premium or feeless, andcalculated anypursuant chargeto for12 singleCFR aPart l1026, iknown aas e"Regulation rZ", 20this premiumsubsection creditand insuranceSubsection orK anyof otherthis feesection; related to insurance;

aprovided tthat mthe mloan 21shall (2)not includehave anya chargeloan asterm providedlonger inthan dtwenty- rfour emonths, 22the Paragraphloan (1)shall ofnot thisbe subsectionrefinanced evenby ifthe thatlender chargeand wouldthe becalculation cof ethe spermitted kannual 23percentage excludedrate fromshall theinclude calculation of finance charges pursuantas todefined ein a12 nCFR bPart 241026, Regulationknown Z;as "Regulation Z";

uor [(2) (3)thirty-six notpercent includefor anya amountloan paidin toan aamount publicgreater .220134.3than -one 36thousand -one SJC/SBhundred 66dollars official($1,100)»Hfl1 in, relationcalculated pursuant to theHCEDCº12 extensionCFR ofPart credit,1026, includingknown feesas to"Regulation recordZ",»HCEDC liens;this subsection and Subsections K and L of this section Hfl1º.

andThe»Hfl1 (4)Hfl1º; follow the rules established for calculating the disclosed annual percentage rate for credit transactions pursuant to Regulation Z based on the charges set forth in Paragraph (1) of this subsection.

K.provided that the»Hfl1 calculation of the permitted annual percentage rate shall HCEDCº:

(1) include finance charges as defined in 12 h CFR Part 1026, known as "Regulation Z", charges for any u » r ancillary product or service sold or any fee charged in t h g e connection or concurrent with the extension of credit, any l i h r i s credit insurance premium or fee and any charge for single h , e h premium credit insurance or any other fee related to insurance;

t u g e b l (2) include any charge as provided in e e , gh n d d i = = o h Paragraph (1) of this subsection even if that charge would be l ] b ,d i a º r excluded from the calculation of finance charges pursuant to e r = t e w d m a n o Regulation Z;

d m :

b r e t º o t n = .220134.3AIC March 18, 2021 (1:47pm) s k m e - 41 - e a n e d r e l u [ A d SJC/SB 66 (3) not include any amount paid to a public official in relation to the extension of credit, including fees to record liens;

and (4) follow the rules established for calculating the disclosed annual percentage rate for credit transactions pursuant to Regulation Z based on the charges set forth in Paragraph (1) of this subsection.»HCEDC HCEDCºinclude any finance charges as defined in 12 CFR Part 1026, known as "Regulation Z".»HCEDC K.

IfHfl1ºIf»Hfl1 Hfl1ºFor a loan in an amount greater than one thousand one hundred dollars ($1,100), if»Hfl1 the prime rate of interest exceeds ten percent for three h consecutive months, then during the month following the third u » r consecutive month in which prime exceeded ten percent, the t h g e maximum allowable permitted annual percentage rate set forth in l i h r i s this section shall increase to thirty-six percent plus each h , e h percentage point or fraction of a percentage e t 17 point by which the t u g e b l prime rate of interest exceeded ten percent win lthe most recent e e , gh n d 18d ini the= most= recento h month.

When the prime rate of interest = = 19 falls below ten percent l ] b ,d i a º r for three consecutive months, the amaximum lallowable ipermitted a e r 20= maximumt allowablee permittedw d annual percentage rate shall return a t m m 21 to thirty-six percent.

dm ra en 22o M.d m :

Theb directorr ofe thet divisionº shallo postt an notice= c.220134.3AIC eMarch s18, k2021 23(1:47pm) ons thek division'sm websitee within- ten42 days- after the provisions e a n be 24d ofr Subsectione Ll ofu this[ sectionA becomed applicable.SJC/SB 66 M.

The noticedirector uof [the division shall statepost thea datenotice on whichthe anydivision's increasewebsite orwithin decreaseten indays after the .220134.3provisions -of 37Subsection -L SJC/SBof 66this maximumsection allowablebecome permittedapplicable. annual percentage rate is effective.

The notice shall state the date on which any increase or decrease in the maximum allowable permitted annual percentage rate is effective.

Upon request from the borrower, all lenders licensed pursuant to the New Mexico Small Loan Act of 1955 shall give or forward to the borrower copies of all loan agreements concerning that borrower, a copy of all receipts maintained in that borrower's loan file and a written statement of that borrower's loan history, including all fees charged, amortization schedules, that borrower's payment history, h including the dates and amounts of payments made, and the total g o amount unpaid pursuant to each contract.

All lenders shall t hr g e retain for seven years from the date of loan file origination i k h r i s or loan payoff, whichever is the later, the documentation eh t, 17t, specified in this subsection.

we lu ng de 18b l [L.] P.

Any rollover, renewal, refinance or =e =e 19h n d d i modification of an existing loan agreement with a licensee, a= = o h l ] b ,d i a º e r 20 except a modification without any additional cost to the ar i = r t me mw 21d borrower, shall constitute a new loan and shall require new dm ra en 22o disclosuresd pursuantm to: the federal Truth in Lending Act." c e s k 23 SECTION 12.

Sectionb 58-15-21e NMSAd 1978s (beingº Lawso 1955,t n = .220134.3AIC March 18, 2021 (1:47pm) s k m e - 43 - e a n be 24d Chapterr 128,e Sectionl 19,u as[ amended)A isd amendedSJC/SB 66 disclosures pursuant to read:the federal Truth in Lending Act.

uHfl1ºHJCº"»HJC [HJCºQ. "58-15-21.

WHATIf CONSTITUTESa LOANborrower OFis MONEY--WAGEdenied .220134.3a -loan 38at -thirty-six SJC/SBpercent 66 PURCHASES.--The payment of [five thousand dollars ($5,000)] ten thousand dollars ($10,000) or lessless, incalculated money,pursuant credit,to goodsSubsections orJ, thingsK inand action,L as consideration for any sale or assignment of orthis ordersection, forby thea paymentcredit ofunion wages, salary, commission or other compensationlender forthat services,regularly whetheroffers earnedsuch orloans to be earned, shall, for the purposespublic, ofthat regulationborrower undermay theapply Newfor Mexicoa Smallloan Loanat Acta rate of 1955,up beto deemedninety-nine acalculated loanpercent, ofpursuant moneyto secured12 byCFR suchPart sale,1026, assignmentknown oras order."Regulation Z";

provided that the borrower submits written or electronic proof to the licensee that within the previous thirty days, the borrower applied for and was denied a loan at a rate not to exceed thirty-six percent.

Notwithstanding the provisions of this subsection, a licensee shall not offer a loan product within the state at a rate higher than thirty-six calculated percent, pursuant to the provisions of this subsection, unless such rate has been approved by the division.

In considering h approval of a loan product with rates higher than thirty-six g o calculated percent, the division shall consider the cost to the t hr g e i k licensee of making the loan at the proposed rate and the risks h r i s to the licensee of nonpayment.

The division shall issue rules h , t, implementing the provisions of this subsection no later than e u g e b l e e h January 1, 2022.

n d d i = = o h R.

All loans made pursuant to this section shall l ] b ,d i a º e comply with the following:

r i = r t e w d m a n o (1) a loan shall not:

d m :

b e d s º o t n = .220134.3AIC March 18, 2021 (1:47pm) s k m e - 44 - e a n e d r e l u [ A d SJC/SB 66 (a) be made for a term of greater than twenty-four months, not including any refinancing term;

(b) accrue late fees, non-sufficient funds bank fees, origination fees, prepayment penalties or charges for any ancillary product;

(c) accrue interest after ninety days of nonpayment;

(d) be recoverable through wage garnishment or assignment;

or (e) be eligible for refinance of the loan by the licensee, unless the consumer is not in default on the current loan and has made at least thirty percent of the payments and paid at least thirty percent of the principal;

(2) a loan shall be subject to underwriting;

and (3) a licensee shall provide a clear h disclosure that complies with the federal Truth in Lending Act, g o including an amortization schedule."»HJC»Hfl1 Hfl1º"»Hfl1 t hr g e i k SECTION 12.

Section 58-15-21 NMSA 1978 (being Laws 1955, h r i s Chapter 128, Section 19, as amended) is amended to read:

h , t, "58-15-21.

WHAT CONSTITUTES LOAN OF MONEY--WAGE e u g e b l e e h PURCHASES.--The payment of [five thousand dollars ($5,000) ] ten n d d i = = o h thousand dollars ($10,000) or less in money, credit, goods or l ] b ,d i a º e things in action, as consideration for any sale or assignment r i = r t e w d m a n o of or order for the payment of wages, salary, commission or d m :

b e d s º o t n = .220134.3AIC March 18, 2021 (1:47pm) s k m e - 45 - e a n e d r e l u [ A d SJC/SB 66 other compensation for services, whether earned or to be earned, shall, for the purposes of regulation under the New Mexico Small Loan Act of 1955, be deemed a loan of money secured by such sale, assignment or order.

Section 58-15-24 NMSA 1978 (being Laws 1955, e t 17 Chapter 128, Section 22, as amended) is amended to read:

w l n d 18 "58-15-24.

LOANS MADE ELSEWHERE.--No loan made outside = = 19 this state to a resident of New Mexico in the amount or of the a l i a e r 20 value of [five thousand dollars ($5,000)]($5,000) ] ten thousand dollars ah t m m 21 ($10,000) or less for which a greater rate of interest, dg ro e 22 consideration, charge or compensation to the lender than is ct ehr sg ke 23 permitted by the general laws of New Mexico in force governing ei ak nh br 24i s money, interest and usury has been charged, contracted for or uh [, t, received shall be enforced in this state.

Every person in any .220134.3e -u 39g -e SJC/SBb 66l way participating in such a loan in this state is subject to e e h n d d i the provisions of the New Mexico Small Loan Act of 1955.

Any = = o h l ] b ,d i a º e loan made to a nonresident of New Mexico in conformity with the r i = r t e w d law of the state where made may be enforced in this state." - 40 - 7 9 11 13 15 e t 17 w l n d 18 = = 19 a l i a e r 20 a t m m 21 d r e 22 c e s k 23 e a n bo 24d um [: .220134.3

b e d s º o t n = .220134.3AIC March 18, 2021 (1:47pm) s k m e - 46 - e a n e d r e l u [ A d SJC/SB 66 HJCºSECTION 14.

EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2022.»HJC - 47 - » g o » r h t i k l i g t h s , e h t l i w l b l e e , g n d l h = = b , a l º d i a r e r = , a t e d m a n o d m :

b r e t º o t n = .220134.3AIC March 18, 2021 (1:47pm) s k em e - 47 - e a n e d r e l u [ A d