New Mexico Statutes 58-1A-2. Definitions
As used in the Consumer Credit Bank Act:
Terms Used In New Mexico Statutes 58-1A-2
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Finance charge: The total cost of credit a customer must pay on a consumer loan, including interest. The Truth in Lending Act requires disclosure of the finance charge. Source: OCC
- Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
- National Bank: A bank that is subject to the supervision of the Comptroller of the Currency. The Office of the Comptroller of the Currency is a bureau of the U.S. Treasury Department. A national bank can be recognized because it must have "national" or "national association" in its name. Source: OCC
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
A. “consumer credit bank” means a national bank located in the state or a bank organized pursuant to the laws of this state that has those powers and limitations provided for pursuant to the Consumer Credit Bank Act;
B. “credit card” means an arrangement or loan agreement under which a domestic bank or consumer credit bank gives a borrower the privilege of using a credit card or other credit confirmation or device of any type in transactions out of which debt is created by:
(1) the domestic bank or consumer credit bank honoring a draft or similar order for the payment of money created, authorized, issued or accepted by the borrower; or
(2) the domestic bank or consumer credit bank paying or agreeing to pay the borrower’s obligation;
C. “credit card account” means an arrangement between a domestic bank or consumer credit bank and a borrower for the creation of debt pursuant to a credit card and under which:
(1) the domestic bank or consumer credit bank may permit the borrower to create either revolving or nonrevolving debt from time to time;
(2) the unpaid balance of principal of the created debt and the loan, finance or other appropriate charges are debited to the account;
(3) a loan finance charge is computed or an interest rate is imposed upon the outstanding debt balances of the borrower’s account from time to time; and
(4) a domestic bank or consumer credit bank is to render bills or statements to the borrower at regular intervals stating the amount that is payable by and due from the borrower on a specified date stated in the bill or statement or, at the option of the borrower but subject to the terms and conditions of the credit card account, stating that the amount may be paid by the borrower in installments;
D. “director” means the director of the financial institutions division of the regulation and licensing department;
E. “domestic bank” means a bank having its principal place of business in this state and chartered under the laws of this state or the United States;
F. except as used in Subsection H of this section, “foreign bank” means a bank chartered under the laws of the United States, any state other than New Mexico or the District of Columbia that has its principal place of business outside of New Mexico;
G. “holding company” means a corporation that controls a domestic, foreign or international bank; and
H. “international bank” means any company organized under the laws of a foreign country, a territory of the United States, Puerto Rico, Guam, American Samoa or the Virgin Islands, which engages in the business of banking, or any subsidiary or affiliate of any company which engages in the business of banking organized under those laws. “International bank” includes foreign commercial banks, foreign merchant banks and other foreign institutions that engage in banking activities usual in connection with the business of banking in the countries where such foreign institutions are organized or operating.