New Mexico Administrative Code
Title 12 - TRADE, COMMERCE AND BANKING
Chapter 18 - LOAN COMPANIES
Part 11 - NEW MEXICO ANNUAL PERCENTAGE RATE CALCULATION
Section 12.18.11.8 - NEW MEXICO ANNUAL PERCENTAGE RATE EXCLUSIONS
Universal Citation: 12 NM Admin Code 12.18.11.8
Current through Register Vol. 35, No. 18, September 24, 2024
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.
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