2021 New Mexico Statutes
Article 8 - Money, Interest and Usury
Section 56-8-8 - [Excessive commission for procuring loan; penalty.]

That any person, association of persons or corporation violating the preceding section [56-8-7 NMSA 1978] shall be deemed guilty of a misdemeanor, and upon conviction thereof shall be punished by a fine of not less than one hundred dollars [($100)] nor more than five hundred dollars [($500)], or by imprisonment for not less than thirty nor more than ninety days, or by both such fine and imprisonment; and shall also be liable in damages to the party injured in double the whole amount so charged for negotiating or securing any such loan.
History: Laws 1912, ch. 31, § 2; Code 1915, § 1807; C.S. 1929, § 35-4617; 1941 Comp., § 53-614; 1953 Comp., § 50-6-14.
Bracketed material. — The bracketed material was inserted by the compiler and is not part of the law.
Corporation may bring action. — A corporation can rely on a violation of 56-8-7 NMSA 1978, which limits commission rates on procuring loans, as a basis for a cause of action for damages pursuant to this section. Diane, Inc. v. Kapnison, 1983-NMSC-056, 100 N.M. 143, 667 P.2d 450.
Penalties for charging excess commission. — This section makes a violation of 56-8-7 NMSA 1978 a misdemeanor and, in addition to a fine and imprisonment, makes the person or corporation liable in damages in double the whole amount charged for negotiating or securing the loan. Forrest Currell Lumber Co. v. Thomas, 1970-NMSC-018, 81 N.M. 161, 464 P.2d 891.
Attorney's duty to advise client of potential penalty. — An attorney who advised his client that a loan brokerage fee which the client charged a corporation was not excessive, had a duty to advise his client on the potential exposure to penalty, should his interpretation be deemed incorrect. First Nat'l Bank v. Diane, Inc., 1985-NMCA-025, 102 N.M. 548, 698 P.2d 5.
Law reviews. — For note, "Legal Malpractice - Liability for Failure to Warn: First National Bank of Clovis v. Diane, Inc.," see 16 N.M.L. Rev. 395 (1986).
Am. Jur. 2d, A.L.R. and C.J.S. references. — 45 Am. Jur. 2d Interest and Usury §§ 218 to 222.
Usury as affected by mistake in amount or calculation of interest or service charges for loan, 11 A.L.R.3d 1498.
Enforceability of provision in loan commitment agreement authorizing lender to charge standby fee, commitment fee or similar deposit, 93 A.L.R.3d 1156.
91 C.J.S. Usury §§ 6, 114, 116.

Structure 2021 New Mexico Statutes