New Mexico Administrative Code
Title 12 - TRADE, COMMERCE AND BANKING
Chapter 16 - BANKING
Part 66 - INTERPRETIVE REGULATION - EXTENSION AGREEMENTS WITH RESPECT TO PRECOMPUTED LOAN TRANSACTIONS
Section 12.16.66.8 - INTERPRETIVE REGULATION
Universal Citation: 12 NM Admin Code 12.16.66.8
Current through Register Vol. 35, No. 6, March 26, 2024
A. All extension agreements with respect to precomputed loan transactions subject to the Bank Installment Loan Act shall be governed by this regulation.
B. In computing the charge for extending (deferring) monthly installments:
(1) a
rebate shall be computed as if the entire loan were being prepaid pursuant to
Section
58-7-5
NMSA 1978 and deducted from the existing loan balance;
(2) the remainder shall be multiplied by
one-twelfth of not more than the original annual percentage rate of the
loan;
(3) the product shall be
multiplied by the number of months or portion thereof by which payments will
not be made;
(4) the result of
these calculations is the amount to be charged to the borrower as a deferral
fee; then
(5) the amount of the
rebate computed in (1) shall be added back to the loan. James W. Stretz,
Director.
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