The following are hereby declared to be the objects and purposes of this act:

A. there exists among citizens of this state a widespread demand for small loans. The scope and intensity of this demand have been increased progressively by many social and economic forces;

B. the expense of making and collecting small loans, which are usually made on comparatively unsubstantial security to wage earners, salaried employees and other persons of relatively low incomes is necessarily high in relation to the amounts lent;

C. experience has proven that such loans cannot be made profitably except under special permissive laws and that without such laws many legitimate enterprises are excluded from the small loan field; that without laws regulating the making of small loans interest charges are often disguised by the use of complicated and technical subterfuge to evade the usury law; that without regulations, borrowers of small sums are often exploited by charges generally exorbitant in relation to those necessary to conduct a small loan business;

D. it is the intent of the legislature in enacting this statute to bring up to date the law pertaining to small loans; to insure more rigid public regulation and supervision of those engaging in the business of making small loans, and selling insurance in connection therewith; to facilitate the elimination of abuse of borrowers; and to establish a system which will more adequately provide honest and efficient small loan service and stimulate competitive reductions in charges.

The legislature expressly declares: that the charges which licensee [licensees] may collect under the provisions of this act, while inclusive of pure interest, are recognized as inclusive also of adequate service fees to the licensees.

The legislature further declares: that the charges established by this act are limiting maximums, fixed after careful study of modernized, adequate and efficiently functioning small loan statutes of other states, which will permit licensees hereunder to meet the expense and loss hazard incident to the making and servicing of small loans, to the end that licensees may be encouraged to establish and maintain supervised and regulated loan agencies, whose competitive operations, while stimulating reductions from maximum allowable charges, will provide legitimate sources of loan credit to a large class of borrowers throughout the state, who cannot otherwise obtain honest and lawful loan accommodations under the general laws of New Mexico governing money, interest and usury.

History: 1953 Comp., § 48-17-30, enacted by Laws 1955, ch. 128, § 1.

Bracketed material. — The bracketed material was added by the compiler and is not part of the law.

Compiler's notes. — The term "this act" means Laws 1955, ch. 128, §§ 1 to 29 that are presently compiled as 58-15-1 to 58-15-3, 58-15-6 to 58-15-13 and 58-15-17 to 58-15-31 NMSA 1978.

Generally. — Small Loan Act of 1947 (Laws 1947, ch. 174, since repealed) was not rendered invalid under the "enrolled bill rule" merely because of a failure of the legislative journals to show that the bill was read publicly in full in each legislative house and properly signed by officers of both houses in open session. Thompson v. Saunders, 1947-NMSC-075, 52 N.M. 1, 189 P.2d 87.

Am. Jur. 2d, A.L.R. and C.J.S. references. — 53A Am. Jur. 2d Money Lenders and Pawnbrokers §§ 1, 9, 11, 12, 13, 23, 51, 52.

Insurance, when one insured as a money lender deemed to be totally and continuously unable to transact all business duties, 24 A.L.R. 212, 37 A.L.R. 151, 41 A.L.R. 1376, 51 A.L.R. 1048, 79 A.L.R. 857, 98 A.L.R. 788.

Constitutionality of statutes regulating the business of making small loans, 69 A.L.R. 581, 125 A.L.R. 743, 149 A.L.R. 1424.

Construction and application of provisions of "small loan" acts as regards maximum amount of loan, 99 A.L.R. 923.

Building and loan association as within statute relating to lenders of money, 99 A.L.R. 1027.

58 C.J.S. Money Lenders §§ 2, 3.