New Mexico § 56-1-2 - Retail installment contracts; consolidation; first bought, first paid

§ 56-1-2. Retail installment contracts; consolidation; first bought, first paid

A. Each retail installment contract shall be in writing, dated, signed by the retail

buyer, and completed as to all essential provisions, except as otherwise provided

in Subsections G and H of this section. B. The printed or typed portion of the contract, other than instructions for completion,

shall be in a size equal to at least eight point type. The contract shall be designated “retail installment contract” and shall contain

substantially the following notice printed or typed in a size equal to at least ten

point bold type: “NOTICE TO THE BUYER. DO NOT SIGN THIS CONTRACT BEFORE YOU READ IT OR IF IT CONTAINS

BLANK SPACES. YOU ARE ENTITLED TO A COPY OF THE CONTRACT YOU SIGN.” C. The retail seller shall deliver to the retail buyer, or mail to him at his address

shown on the retail installment contract, a copy of the contract as accepted by the

seller. Until the seller does so, a buyer, who has not received delivery of the goods or

been furnished or rendered the services, shall have the right to rescind his contract

and to receive a refund of all payments made and return of all goods traded in to

the seller on account of or in contemplation of the contract, or if such goods cannot

be returned, the value thereof. Any acknowledgment by the buyer of delivery of a copy of the contract shall be in

a size equal to at least ten point bold type and, if contained in the contract, shall

appear directly above the buyer's signature. D. The retail installment contract shall contain the names of the seller and the buyer,

the place of business of the seller, the residence or other address of the buyer as

specified by the buyer and a description or identification of the goods sold or to

be sold, or services furnished or rendered or to be furnished or rendered. E. The retail installment contract shall contain the following items: (1) the cash sale price of the goods or services; (2) the amount of the buyer's down payment, identifying the amounts paid in money

and allowed for goods traded in; (3) the difference between items (1) and (2); (4) the aggregate amount, if any, included for insurance, if a separate identified

charge is made therefor, specifying the type or types of insurance and the term or

terms of coverage; (5) the aggregate amount of official fees; (6) the principal balance, which is the sum of items (3), (4) and (5); (7) the amount or rate of the time price differential; (8) the amount of the time balance owed by the buyer to the seller, which is the sum

of items (6) and the amount set out under item (7); (9) except as otherwise provided in the next two sentences, the maximum number of

installment payments required and the amount of each installment and the due date

of each payment necessary to pay the time balance set forth in item (8). If installment payments other than the final payment are stated as a series of equal

scheduled amounts and if the amount of the final installment payment does not substantially

exceed the scheduled amount of each preceding installment payment, the maximum number

of payments and the amount and due date of each payment need not be separately stated

and the amount of the scheduled final installment payment may be stated as the remaining

unpaid balance. The due date of the first installment payment may be fixed by a day or date or may

be fixed by reference to the date of the contract or to the time of delivery or installation; (10) the time sale price; and (11) if any installment (except the down payment) is more than double the average

of all other installments (except the down payment), the following legend printed

in at least ten point bold type or typewritten: THIS CONTRACT IS NOT PAYABLE IN INSTALLMENTS OF EQUAL AMOUNTS followed, if there be but one such larger installment, by: AN INSTALLMENT OF $ WILL BE DUE ON or, if there be more than one such larger installment, by: LARGER INSTALLMENTS WILL BE DUE AS FOLLOWS: , in such latter case, inserting the amount of every such larger installment and of

its due date. The above items need not be stated in the sequence or order set forth; additional

items may be included to explain the computations made in determining the amount to

be paid by the buyer. F. A retail installment contract need not be contained in a single document. If the contract is contained in more than one document, one such document may be

an original document signed by the retail buyer, stated to be applicable to purchases

of goods or services to be made by the retail buyer from time to time. In such case, such document, together with the sales slip, account book or other

written statement relating to each purchase, shall set forth all of the information

required by this section and shall constitute the retail installment contract for

each purchase. On each succeeding purchase pursuant to such original document, the sales slip,

account book or other written statement may at the option of the seller constitute

the memorandum required by Subsection M of this section. G. Retail installment contracts negotiated and entered into by mail without personal

solicitations by salesmen or other representatives of the seller and based upon a

catalog of the seller, or other printed solicitation which clearly sets forth the

cash sale prices and other terms of sales to be made through such medium, may be made

as provided in this subsection. The provisions of this act with respect to retail installment contracts shall be

applicable to such sales, except that: (1) the designation and notice provisions of Subsection B of this section shall not

be applicable to such contract; and (2) the retail installment contract, when completed by the buyer, need not contain

the items required by Subsection E of this section. When the contract is received from the retail buyer, the seller shall prepare a written

memorandum containing all of the information required by Subsection E of this section

to be included in a retail installment contract. In lieu of delivering a copy of the contract to the retail buyer as provided in

Subsection C of this section, the seller shall deliver to the buyer a copy of such

memorandum prior to the due date of the first installment payable under the contract. H. A retail installment contract shall not be signed by any party thereto when it

contains blank spaces of items which are essential provisions of the transaction;

provided, however, if delivery of the goods is not made at the time of the execution

of the contract, the identifying numbers of marks of the goods or similar information

and the due date of the first installment may be inserted by the seller in the seller's

counterpart of the contract after it has been signed by the buyer. The buyer's acknowledgment, conforming to the requirements of this section, of delivery

of a copy of the contract shall be presumptive proof, or, in the case of a holder

of the contract without knowledge to the contrary when he purchases it, conclusive

proof of such delivery and of compliance with this subsection and any other requirement

relating to completion of the contract prior to execution thereof by the buyer, in

any action or proceeding. I. Notwithstanding the provisions of any other law, a retail installment contract

may provide for, and the seller or holder may then charge, collect and receive a time

price differential. The time price differential on a retail installment contract shall be computed on

the principal balance of each transaction, as determined under Subsection E on contracts

payable in successive monthly payments substantially equal in amount from the date

of the contract to the maturity of the final payment, notwithstanding that the total

time balance thereof is required to be paid in one or more deferred payments. When a retail installment contract provides for payment other than in substantially

equal successive monthly payments, the time price differential shall not exceed the

amount which will provide the same return as is permitted on substantially equal successive

monthly payment contracts, having due regard for the schedule of payments. The time price differential may be computed on the basis of a full month for any

fractional portion of a month in excess of ten days. J. Notwithstanding the provisions of any retail installment contract to the contrary,

any buyer may prepay in full the unpaid time balance thereof at any time before its

final due date and, if he does so, shall receive a refund credit thereon for such

prepayment. The amount of such refund credit shall represent at least as great a proportion

of the original time price differential, after deducting therefrom a maximum of ten

dollars ($10.00) as: (1) the sum of the monthly balances under the schedule of payments in the contract

beginning as of the date after such prepayment which is the next succeeding monthly

anniversary date of the due date of the first installment under the contract, or,

if the prepayment is prior to the due date of the first installment under the contract,

then as of the date after such prepayment which is the next succeeding monthly anniversary

date of the date of the contract, bears to; (2) the sum of all the monthly balances under the schedule of installment payments

in the contract. Where the amount of refund credit is less than one dollar ($1.00), no refund credit

need be made. K. The holder of any retail installment contract, if it so provides, may collect a

delinquency and collection charge on each installment in default for a period of more

than ten days in the amount not to exceed five percent of each installment or five

dollars ($5.00), whichever is less, or in lieu thereof, interest after maturity of

each such installment not to exceed the highest lawful contract rate. In addition, such contract may provide for the payment of an attorney's reasonable

fee where it is referred for collection to an attorney not a salaried employee of

the holder of the contract, and for court costs and disbursements. L. Upon written request of the buyer, the holder of a retail installment contract

shall give or forward to the buyer a written statement of the dates and amounts of

payments and the total amount unpaid under the contract. A buyer shall be given a written receipt for any payment when made in cash. Such a statement or receipt shall be given the buyer once without charge; if any

additional statement is requested by the buyer, it shall be supplied by the holder

at a charge not in excess of one dollar ($1.00) for each additional statement or receipt

so supplied. M. (1) If, in a retail installment transaction, a retail buyer makes any subsequent

purchases of goods or services from a retail seller from whom he has previously purchased

goods or services under one or more retail installment contracts, and the amounts

under such previous contract or contracts have not been fully paid, the subsequent

purchases may, at the seller's option, be included in and consolidated with one or

more of the previous contract or contracts. Each subsequent purchase shall be a separate retail installment contract under this

act, notwithstanding that the same may be included in and consolidated with one or

more of such previous contract or contracts. All the provisions of this act with respect to retail installment contracts shall

be applicable to such subsequent purchases except as hereinafter stated in this subsection. (2) In the event of such consolidation, in lieu of the buyer's executing a retail

installment contract respecting each subsequent purchase, as provided in this section,

it shall be sufficient if the seller shall prepare a written memorandum of each subsequent

purchase, in which case the provisions of Subsections A, B, C and E of this section

shall not be applicable. Unless previously furnished in writing to the buyer by the seller, by sales slip,

memorandum or otherwise, such memorandum shall contain with respect to each subsequent

purchase items (1) through (8) of Subsection E of this section and, in addition, the

outstanding balance of the previous contract or contracts, the consolidated time balance,

and the revised installments applicable to the consolidated time balance, if any. The seller shall deliver to the buyer a copy of such memorandum prior to the due date

of the first installment of such consolidated contract. (3) When such subsequent purchases are made, if the seller has retained title or taken

a lien or other security interest in any of the goods purchased under any one of the

contracts included in the consolidation, the entire amount of all payments made prior

to such subsequent purchases shall be deemed to have been applied on the previous

purchases; and each payment after such subsequent purchase made on the consolidated

contract shall be deemed to have been allocated to the purchases earliest in time. The payments shall be credited first to the current carrying charges and then in

reduction of the purchase price of merchandise in the order in which it was purchased. Articles of merchandise for which the sales price and carrying charges have been

paid for under this section shall not thereafter be repossessed or considered security

for payment of any charge arising out of any subsequent purchases made by the buyer. However, the amount of any down payment on the subsequent purchase shall be allocated

in its entirety to such subsequent purchase. The provisions of this paragraph shall not apply to cases where such previous and

subsequent purchases involve equipment, parts, or other goods attached or affixed

to goods previously purchased and not fully paid, or to services in connection therewith

rendered by the seller at the buyer's request.