A premium finance agreement may provide for the payment by the insured of a delinquency charge on each installment in default for a period of more than ten days and in an amount not to exceed five percent of each installment, or five dollars ($5.00), whichever is less, or in lieu thereof, interest after maturity of each such installment not to exceed the highest lawful contract rate; except that with respect to agreements financing coverages for other than personal, family or household purposes, the delinquency charge shall be an amount equal to five percent of the unpaid installment, but in no event more than five hundred dollars ($500). In addition, such contract may provide for the payment of an attorney's reasonable fee, where it is referred for collection to an attorney not a salaried employee of the person to whom the installment payment is due, and for court costs and disbursements.
History: Laws 1984, ch. 127, § 841; 1999, ch. 75, § 1.
The 1999 amendment, effective June 18, 1999, inserted the language beginning "except that" in the first sentence, and made minor stylistic changes.
Structure New Mexico Statutes
Article 45 - Premium Financing
Section 59A-45-1 - Short title.
Section 59A-45-2 - Definitions.
Section 59A-45-3 - Licensing requirements.
Section 59A-45-4 - Bonding requirements for licensees.
Section 59A-45-5 - Exemptions.
Section 59A-45-6 - Books and records.
Section 59A-45-7 - Form of premium finance agreement.
Section 59A-45-8 - Additional requirements.
Section 59A-45-9 - Assignee subject to defenses.
Section 59A-45-10 - Delinquency charges.
Section 59A-45-11 - Cancellation of insurance contract upon default.
Section 59A-45-12 - Exemption from any filing requirement.
Section 59A-45-13 - Revocation and suspension of licenses.
Section 59A-45-14 - Cease and desist order from the superintendent.