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.
ANNOTATIONSBracketed 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.