New Mexico Statutes
Article 8 - Money, Interest and Usury
Section 56-8-7 - Procuring loans; rate of commission; exceptions.

For negotiating or securing any loan, no person, association of persons or corporation shall charge, collect or receive in excess of the following amounts:
A. upon any loan not exceeding five hundred dollars ($500), four percent;
B. upon any loan exceeding five hundred dollars ($500) and not exceeding two thousand dollars ($2,000), four percent upon the first five hundred dollars ($500) and three percent upon the remainder; and
C. upon any loan exceeding two thousand dollars ($2,000), four percent upon the first one thousand dollars ($1,000) and two percent upon the remainder; provided that this section shall not apply to any loan in excess of fifty thousand dollars ($50,000) when such loan is made for business, commercial or agricultural purposes, nor to any loan negotiated or secured by a registrant under the Mortgage Loan Company and Loan Broker Act [Mortgage Loan Company Act] [Chapter 58, Article 21 NMSA 1978]. In such instances, broker's fees shall be negotiable, but shall not exceed six percent of the principal amount of the loan.
History: Laws 1912, ch. 31, § 1; Code 1915, § 1806; C.S. 1929, § 35-4616; 1941 Comp., § 53-613; 1953 Comp., § 50-6-13; Laws 1977, ch. 293, § 3; 1984, ch. 15, § 4.
Bracketed material. — The bracketed material was inserted by the compiler and is not part of the law.
A note given for interest and not commissions is not unlawful. Tompkins v. Rain, 1921-NMSC-015, 26 N.M. 631, 195 P. 800.
Commission rates limited. — This section places a maximum limit on the rate of commission for negotiating or securing a loan for more than two thousand dollars ($2,000) at 4% on the first $1,000 and 2% on the remainder. Forrest Currell Lumber Co. v. Thomas, 1970-NMSC-018, 81 N.M. 161, 464 P.2d 891.
Inapplicable absent broker-principal relation. — This section limits the charge which may be made by a broker against his principal for services rendered by the broker in procuring a loan of money for the principal. The section has no application where there is no broker-principal relation. Home Sav. & Loan Ass'n v. Bates, 1966-NMSC-167, 76 N.M. 660, 417 P.2d 798.
Violation of section as cause of action by corporation. — A corporation can rely on a violation of this section as a basis for a cause of action for damages pursuant to 56-8-8 NMSA 1978. Diane, Inc. v. Kapnison, 1983-NMSC-056, 100 N.M. 143, 667 P.2d 450.
Am. Jur. 2d, A.L.R. and C.J.S. references. — 45 Am. Jur. 2d Interest and Usury § 235.
Expenses or charges in form of commissions to agents, brokers, or like intermediaries incident to loan of money, 52 A.L.R.2d 703.
91 C.J.S. Usury §§ 6, 114.

Structure New Mexico Statutes