Usury

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Statutes

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No Written Contract

The rate of interest, in the absence of a written contract fixing a different rate, is a maximum of 15% annually on money due by contract; on money received to the use of another and retained without the owner's consent expressed or implied; and on money due upon the settlement of matured accounts from the day the balance is ascertained. NMSA §56-8-3

Judgements and Decrees

Interest is allowed on judgments and decrees for the payment of money from entry and shall be calculated at the rate of eight and three-fourths percent per year with limited exceptions. NMSA §56-8-4

Current or Open Accounts

In current or open accounts the interest rate may not be more than 15% annually, thirty days after the delivery of the last article or service; provided that the parties may set a higher rate by agreement. NMSA §56-8-5

Commission and Premium

Rates of commission for negotiating or securing a loan are calculated according to NMSA §56-8-7

Lenders may charge a premium or points of not more than 3% of the face amount of an interim construction loan. NMSA §56-8-9

Liability

The principal is liable for the acts of its agent in loaning money. NMSA §56-8-12

The penalty for violations is forfeiture of all interest agreed to be paid, and if any interest has been paid, recovery of twice the amount of that interest. NMSA §56-8-13

Violation is a misdemeanor, punishable by a fine. NMSA §56-8-14 "

Cases

The recovery of interest on interest prior to judgment is not permitted absent a contract or statute authorizing it. Southern Union Exploration Co. v. Wynn Exploration Co.,Inc., 1981 -NMCA- 006, ¶ 37, 95 N.M. 594, 601, 624 P.2d. 536, 543 (Ct. App. 1981), cert. denied, 95 N.M. 593, 624 P.2d 535, cert. denied, 455 U.S. 920, 102 S.Ct. 1276 (1982).

 

Comments

Usury is generally not a concern for most commercial lenders in New Mexico.

Contributors

Andrew Simons, Noe Astorga-Corral and Alison K. Goodwin
Sutin, Thayer & Browne

The statutory information was edited and reviewed with the support of MultiState

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