NOTE: As provided in LFC policy, this report is intended for use by the standing finance committees of the legislature. The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.
Only the most recent FIR version, excluding attachments, is available on the Intranet. Previously issued FIRs and attachments may be obtained from the LFC office in Suite 101 of the State Capitol Building North.
| SPONSOR: | Garcia, M.P. | DATE TYPED: | 03/05/01 | HB | 280/aHAFC | ||
| SHORT TITLE: | Interest Rates for Motor Vehicle Loan | SB | |||||
| ANALYST: | Eaton | ||||||
| Subsequent
Years Impact |
Recurring
or Non-Rec |
Fund
Affected | ||
| FY01 | FY02 | |||
| NFI | ||||
(Parenthesis ( ) Indicate Revenue Decreases)
SOURCES OF INFORMATION
Attorney General's Office
The Financial Institutions Division of the Regulation and Licensing Department (RLD) report had not been received prior to the writing of this report.
SUMMARY
Synopsis of HAFC Amendment
The House Appropriations and Finance Committee amendment excludes the limitation on interest rates for retail installment contracts and loans made by a national bank, state bank, savings and loan association or credit union.
The sections relating to finance charge limitations and penalty provisions are also removed.
Synopsis of Original Bill
This bill adds a new section (56-8-11 NMSA 1978) limiting the maximum interest rate on the secured sale of a motor vehicle to the higher of 18% or the published prevailing discount rate plus 5 percent. This section does not apply to business or commercial vehicles over 10,000 gross weight.
FISCAL IMPLICATIONS
Unknown.
JBE/ar