46th legislature - STATE OF NEW MEXICO - first session, 2003

RELATING TO FINANCIAL INSTITUTIONS; ENACTING REPORTING REQUIREMENTS FOR DEFERRED DEPOSIT LOANS.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

Section 1. A new section of the New Mexico Small Loan Act of 1955 is enacted to read:

"[NEW MATERIAL] REPORTING REQUIREMENTS FOR DEFERRED DEPOSIT LOANS.--

A. A licensee that issues deferred deposit loans shall file an annual report with the division for data collection purposes on or before the last day of March for the preceding calendar year on forms prescribed by the division. The report shall disclose in detail and under appropriate headings:

(1) the location of the licensee;

(2) the unencumbered assets of the licensee;

(3) the licensure of the licensee;

(4) the total volume of the licensee's deferred deposit loans in dollars;

(5) the total number of the licensee's deferred deposit loans;

(6) the total number of the licensee's deferred deposit loans outstanding;

(7) the minimum, maximum and average dollar amount of the licensee's deferred deposit loans;

(8) the average annual percentage rate charged to the consumer;

(9) all other fees and charges to the consumer;

(10) the total number of deferred deposit loans made to each consumer;

(11) the number of rollovers by each consumer;

(12) the total cost of rollovers to each consumer;

(13) the total number of loans in default;

(14) the total dollar amount of loans in default;

(15) the address and census tract of each consumer;

(16) each consumer's income during the term of the deferred deposit loan;

(17) each consumer's other outstanding loans at the time of the deferred deposit loan;

(18) documentation required by the licensee prior to issuing a deferred deposit loan;

(19) actions taken by the licensee upon default;

(20) copies of loan documents and fee schedules;

(21) the number and type of complaints filed against the licensee; and

(22) any additional information that the director requests to determine if the licensee is complying with the provisions of the New Mexico Small Loan Act of 1955.

B. For the purpose of this section:

(1) "deferred deposit loan" means a transaction in which a licensee lends money to a consumer by:

(a) accepting a check dated on the date it was written and agreeing to hold it for a specific period of days prior to deposit or presentment; or

(b) accepting a check dated subsequent to the date it was written and agreeing to hold the check for deposit until the date written on the check; and

(2) "rollover" means the act of paying the fees and interest due on a loan and extending the loan for a specific period."

Section 2. Section 58-15-2 NMSA 1978 (being Laws 1955, Chapter 128, Section 2, as amended) is amended to read:

"58-15-2. DEFINITIONS.--[The following words and terms when] As used in the New Mexico Small Loan Act of 1955 [shall have the following meanings unless the context clearly requires a different meaning. The meaning ascribed to the singular form shall apply also to the plural]:

A. "person" [shall include] means individuals, co-partners, associations, trusts, corporations and any other legal entity;

B. "license" [shall mean] means a permit issued under the authority of the New Mexico Small Loan Act of 1955 to make loans and collect charges [therefor] strictly in accordance with the provisions of [the New Mexico Small Loan Act of 1955] that act at a single place of business. It [shall constitute and be construed as] is a grant of a [revokable] revocable privilege only to be held and enjoyed subject to all the conditions, restrictions and limitations contained in [the New Mexico Small Loan Act of 1955] that act and [lawful regulations] rules promulgated by the [director of the financial institutions] division and not otherwise;

C. "licensee" [shall mean] means a person to whom one or more licenses have been issued [hereunder] under the New Mexico Small Loan Act of 1955 upon [their] the person's written application electing to become a licensee and consenting to exercise the privilege of a licensee solely in conformity with [the New Mexico Small Loan Act of 1955] that act and the [lawful regulations] rules promulgated by the [director of the financial institutions] division [hereunder] under that act and whose name [or names appear] appears on the face of the license;

D. "director" means the director of the [financial institutions] division [of the commerce and industry department]; and

E. "department" or "division" means the financial institutions division of the [commerce and industry] regulation and licensing department."