New Mexico
Register / Volume XXIX, Issue 16 / August 28, 2018
TITLE 12 TRADE, COMMERCE AND BANKING
CHAPTER 18 LOAN COMPANIES
PART 8 LICENSING OF NONRESIDENT LENDERS
12.18.8.1 Issuing agency: Financial
Institutions Division of the Regulation and Licensing Department.
[12.18.8.1 NMAC - Rp, 12.18.8.1 NMAC, 09/15/2018]
12.18.8.2 Scope: Loan companies
conducting business in New Mexico.
[12.18.8.2 NMAC - Rp, 12.18.8.2 NMAC, 09/15/2018]
12.18.8.3 Statutory
authority: Section 58-15-11 NMSA 1978.
[12.18.8.3 NMAC - Rp, 12.18.8.3 NMAC, 09/15/2018]
12.18.8.4 Duration: Permanent.
[12.18.8.4 NMAC - Rp, 12.18.8.4 NMAC, 09/15/2018]
12.18.8.5 Effective date: September 15,
2018, unless a later date is cited at
the end of a section.
[12.18.8.5 NMAC - Rp, 12.18.8.5 NMAC, 09/15/2018]
12.18.8.6 Objective: The objective of this
part is to define the requirements for licensure for persons conducting a
business of making small loans to residents of New Mexico solely from locations
outside of New Mexico.
[12.18.8.6 NMAC - Rp, 12.18.8.6 NMAC, 09/15/2018]
12.18.8.7 Definitions:
[Reserved]
[12.18.8.7 NMAC - Rp, 12.18.8.7 NMAC, 09/15/2018]
12.18.8.8 Licensing of nonresident
lenders:
A. When
the proceeds of a small loan in the amount or of the value of $5,000 or less
have been delivered to a New Mexico resident borrower by mail within New Mexico
or have been otherwise made available to a New Mexico resident borrower within
New Mexico, by a lender who solicited such small loan by mail or otherwise and
the solicitation is received by a New Mexico resident in New Mexico, the loan
is considered to have been made in New Mexico for the purposes of the New
Mexico Small Loan Act of 1955, and both the lender and the loan are thereby
subject to the provisions contained in said act. Any person making small loans under such
circumstances is deemed to be engaging in the business of lending, as that term
is used in Section 58-15-3 NMSA 1978, and the person must first have obtained a
license from the director under the provisions of the New Mexico Small Loan Act
of 1955 and this regulation if the person contracts for, exacts or receives,
directly or indirectly on or in connection with the loan, charges, whether for
interest, compensation, consideration or expense, which in the aggregate are
greater than the maximum as provided by the applicable laws of New Mexico.
B. Such
loans and licensees must comply with all the requirements and provisions
contained in the New Mexico Small Loan Act of 1955, including the limitations
on the maximum allowable charges contained in Section 58-15-14.1 NMSA 1978.
C. Such
a loan made by a licensee under such conditions is not considered to have been
made outside of New Mexico so as to be unenforceable under Section 58-15-24
NMSA 1978, even though the lender's place of business is located outside of New
Mexico.
D. If
a person applies for a small loan license in order to engage in the business of
making small loans to resident borrowers solely from locations outside of New
Mexico, the "community" in which the business of the applicant is to
be conducted, as that term is used in Section 58-15-5 NMSA 1978, shall mean the
geographic area, which may be statewide, in which the applicant proposes to
solicit such small loans.
E. Upon
the granting of a small loan license to a lender who indicates an intention to
conduct a small loan business solely from locations outside of New Mexico, that
lender shall establish and maintain a toll-free telephone service available in
New Mexico to resident borrowers, or shall agree to accept collect calls at the
lender's principal place of business from resident borrowers so that borrowers
may contact the lender or his representatives concerning details of their loan
transactions. Upon the delivery of the
proceeds of such a small loan to a resident of New Mexico, the licensee shall
immediately notify the borrower in writing of the existence of such toll-free
telephone service, or of the agreement to accept collect calls.
F. If
a licensee engages in the business of making small loans to New Mexico
residents solely from locations outside of New Mexico, the director will
conduct, in his discretion, the examinations authorized by Section 58-15-9 NMSA
1978, in either of two ways:
(1) the
licensee may be required to make available to the director for examination at
the offices of the director such of the loans, transactions, books, papers and
records of the licensee, insofar as they pertain to the business licensed under
the New Mexico Small Loan Act of 1955, as the director may deem necessary; or
(2) the
examinations of the loans, transactions, books, papers and records of the
licensee, insofar as they pertain to the business licensed under the New Mexico
Small Loan Act of 1955, may be conducted by the director or the director's
authorized representative at the licensee's principal place of business outside
of New Mexico, and the licensee shall be required to pay to the director the
actual and reasonable travel and living expenses incurred during such
examinations for one examiner per examination.
Said payments for expenses shall be in addition to such other fees and
expenses as may be authorized under the New Mexico Small Loan Act of 1955. The director may require the licensee to pay
such expenses prior to the examination.
[12.18.8.8 NMAC - Rp, 12.18.8.8 NMAC, 09/15/2018]
History OF 12.18.8 NMAC:
Pre-NMAC History: The material in this part was derived from that previously
filed with the State Records Center and Archives under:
FID 79-2, Regulation 79-, CCB,
Licensing of Nonresidential Lenders, filed 10/25/79.
Other History:
12.8.8 NMAC - Licensing of Nonresident Lenders,
filed 9/30/1997 was repealed and replaced by 12.8.8 NMAC - Licensing of Nonresident Lenders, effective 09/15/2018.