New Mexico Register / Volume XXXIV, Issue 5 / March 14, 2023





PART 11              NEW MEXICO ANNUAL PERCENTAGE RATE CALCULATION             ISSUING AGENCY:  Financial Institutions Division of the Regulation and Licensing Department.

[ NMAC – N, 03/29/2023]             SCOPE:  Small loan licensees conducting business in New Mexico.

[ NMAC – N, 03/29/2023]             STATUTORY AUTHORITY:  Section 58-15-11 NMSA 1978.

[ NMAC – N, 03/29/2023]             DURATION:  Permanent.

[ NMAC – N, 03/29/2023]             EFFECTIVE DATE:  March 29, 2023, unless a later date is cited at the end of a section.

[ NMAC – N, 03/29/2023]             OBJECTIVE:  The objective of this part is to establish regulations governing the conduct of small loan licensees.

[ NMAC – N, 03/29/2023]             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.


                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.

[ NMAC – N, 03/29/2023]


History of 12.18.11 NMAC: [RESERVED]