In a precomputed loan transaction, the interest charge shall be calculated on the assumption that all scheduled payments will be made when due, and the effect of prepayment is governed by the provisions of rebate upon prepayment in Section 58-7-5 NMSA 1978.
History: 1978 Comp., § 58-7-3.1, enacted by Laws 1983, ch. 96, § 1; 2017, ch. 110, § 4.
ANNOTATIONSThe 2017 amendment, effective January 1, 2018, required that interest charged on precomputed loan transactions be calculated on the assumption that all scheduled payments will be made when due; deleted "If the loan is" and added "In", and after "the interest charge", deleted "may" and added "shall".
Applicability. — Laws 2017, ch. 110, § 26 provided that the provisions of Laws 2017, ch. 110 shall apply to loans subject to the New Mexico Small Loan Act of 1955 and the New Mexico Bank Installment Loan Act of 1959 executed on or after January 1, 2018.