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.
ANNOTATIONSSection 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.