Section 58-15-14.1 - Charges; method of computation. - New Mexico Statutes

58-15-14.1. Charges; method of computation.

The simple interest method shall be used for loans made under the New Mexico Small Loan Act of 1955 [58-15-31 NMSA 1978].  Interest charges shall not be paid, deducted or received in advance.  Interest charges shall not be compounded.  However, if part or all of the consideration for a loan contract is the unpaid principal balance of a prior loan, then the principal amount payable under the loan contract may include any unpaid charges that have accrued within sixty days on the prior loan.  Such charges shall be computed on the basis of the number of days actually elapsed.