N.M. Admin. Code § 12.16.66.8

Current through Register Vol. 35, No. 23, December 10, 2024

Section 12.16.66.8 - INTERPRETIVE REGULATION

A. All extension agreements with respect to precomputed loan transactions subject to the Bank Installment Loan Act shall be governed by this regulation.

B. In computing the charge for extending (deferring) monthly installments:

(1) a rebate shall be computed as if the entire loan were being prepaid pursuant to Section 58-7-5 NMSA 1978 and deducted from the existing loan balance;

(2) the remainder shall be multiplied by one-twelfth of not more than the original annual percentage rate of the loan;

(3) the product shall be multiplied by the number of months or portion thereof by which payments will not be made;

(4) the result of these calculations is the amount to be charged to the borrower as a deferral fee; then

(5) the amount of the rebate computed in (1) shall be added back to the loan. James W. Stretz, Director.

N.M. Admin. Code § 12.16.66.8

3/16/87; Recompiled 10/15/01