0001|                           SENATE BILL 369
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0002|     43RD LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION, 1998
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0003|                            INTRODUCED BY
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0004|                          NANCY E. RODRIGUEZ
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0005|     
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0006|                                   
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0007|     
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0008|                                   
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0009|     
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0010|                                AN ACT
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0011|     PROHIBITING RESTRICTION OF PARTIAL PREPAYMENT OF CERTAIN LOANS
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0012|     SECURED BY A FIRST MORTGAGE OR LIEN ON RESIDENTIAL REAL
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0013|     ESTATE.
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0014|     
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0015|     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0016|          Section 1.  RESTRICTION OF PARTIAL PREPAYMENT OF LOANS
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0017|     SECURED BY A FIRST MORTGAGE ON RESIDENTIAL REAL ESTATE.--
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0018|               A.  A provision restricting partial prepayment of a
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0019|     debt in amount or frequency included in an instrument
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0020|     evidencing the debt executed by a borrower in favor of a
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0021|     lender is not enforceable if it is secured by a security
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0022|     agreement creating a first lien on residential real estate
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0023|     located in this state.  Disclosure of this provision shall be
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0024|     made to a prospective borrower and notice of its content shall
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0025|     be printed in the instrument evidencing the debt in a manner
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0001|     reasonably calculated to call attention of the borrower to the
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0002|     notice. 
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0003|               B.  A lender that enforces or attempts to enforce a
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0004|     provision described in Subsection A of this section shall
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0005|     forfeit one regular installment payment payable under the
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0006|     instrument of indebtedness for each occurrence of enforcement
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0007|     or attempt.  A borrower may bring an action in court to
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0008|     enforce the provisions of this section and if he prevails in
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0009|     the action, he shall be awarded his costs and reasonable
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0010|     attorney fees. 
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0011|               C.  As used in this section, "residential real
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0012|     estate" means real property consisting of not more than four
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0013|     dwelling units.
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0014|                              
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