A. No corporation shall plead, enforce a remedy, counterclaim, set off or set up the defense of usury to any action brought against it to recover damages or shall enforce a remedy for usury on any obligation executed by the corporation.
B. No limited partnership, limited partner or general partner of a limited partnership, shall plead or set up the defense of usury in any action brought against it or him on a limited partnership obligation. No limited partnership, limited partner or general partner of a limited partnership shall enforce a remedy for usury on any limited partnership obligation.
C. This section shall apply to a transaction in which a corporation or a limited partnership is debtor regardless of the purpose for which the corporation or limited partnership was formed.
History: 1953 Comp., § 50-6-26, enacted by Laws 1975, ch. 171, § 1.
Section has no applicability to action involving violation of 56-8-7 NMSA 1978, limiting commission rates on procuring loans. Diane, Inc. v. Kapnison, 1983-NMSC-056, 100 N.M. 143, 667 P.2d 450.
Individual's usury defense allowed when corporation guarantor. — When a corporation is not a primary maker on a note but is a guarantor, the individuals who signed as makers are entitled to assert the defense of usury. First Nat'l Bank v. Danek, 1976-NMSC-077, 89 N.M. 623, 556 P.2d 31.
Usury defense unavailable where corporation actually maker. — Evidence which tended to show that the money represented by a promissory note was primarily to be used to establish and operate a corporation and that the corporation was actually the maker and the individuals, the guarantors, would have nullified the defense of usury. First Nat'l Bank v. Danek, 1976-NMSC-077, 89 N.M. 623, 556 P.2d 31.
Exemptions applicable to Residential Home Loan Act. — The exemptions from interest limitations and other provisions of law established by 56-8-9 and 58-8-1 to 58-8-3 NMSA 1978 and this section should be applicable to any home loan made pursuant to the Residential Home Loan Act. 1980 Op. Att'y Gen. No. 80-14.
Law reviews. — For article, "The Use (or Abuse) of the Limited Partnership in Financing Real Estate Ventures in New Mexico," see 3 N.M. L. Rev. 251 (1973).
Am. Jur. 2d, A.L.R. and C.J.S. references. — 45 Am. Jur. 2d Interest and Usury §§ 285 to 290.
Quantum, degree, or weight of evidence to sustain usury charge, 51 A.L.R.2d 1087.
Statute denying defense of usury to corporation, 63 A.L.R.2d 924.
Admissibility, in civil case involving usury issue, of evidence of other assertedly usurious transactions, 67 A.L.R.2d 232.
Usury as affected by acceleration clause, 66 A.L.R.3d 650.
91 C.J.S. Usury §§ 26, 92, 135, 160.
Structure New Mexico Statutes
Chapter 56 - Commercial Instruments and Transactions
Article 8 - Money, Interest and Usury
Section 56-8-1 - [Lawful money; definition; application.]
Section 56-8-2 - [Denominations to be reduced to lawful basis in actions.]
Section 56-8-3 - Interest rate; no written contract.
Section 56-8-4 - Judgments and decrees; basis of computing interest.
Section 56-8-5 - Interest; open accounts.
Section 56-8-6 - Grain purchase contracts; disclosure regarding act of God clause.
Section 56-8-7 - Procuring loans; rate of commission; exceptions.
Section 56-8-8 - [Excessive commission for procuring loan; penalty.]
Section 56-8-9 - Excessive charges prohibited; applicability of maximum rates; definition.
Section 56-8-10 - Farm, ranch and agriculture loans.
Section 56-8-12 - Loans by agent; liability of principal.
Section 56-8-13 - Penalties and forfeitures.
Section 56-8-14 - Criminal penalty.
Section 56-8-15 to 56-8-20 - Repealed.
Section 56-8-21 - Usury; corporations and limited partnerships.
Section 56-8-22 - Short title.
Section 56-8-23 - Purpose of act.
Section 56-8-24 - Definitions.
Section 56-8-25 to 56-8-28 - Repealed.