A New Mexico promissory note is a concise, legally binding agreement between lender and borrower, outlining repayment terms, interest rate, and loan maturity date without requiring government filing.
Simplified compared to formal loan agreements, it is typically used among individuals and entities, offering two specific versions for New Mexico. This document ensures enforceability and serves as court evidence if the borrower defaults.
By Type
Usury Laws and Interest Rates
The promissory note must adhere to New Mexico’s usury laws as outlined in Chapter 56, Article 8:
- With a Contract: No specified Limit.
- Without a Contract (§ 56-8-3): 15%
- For Loans to Corporations/Businesses (§ 56-8-9(B)): No cap, except on farm/agriculture mortgages (§ 56-8-10).
- For Judgments: 8.75% (§ 56-8-4); exceptions include:
- Different rates on written instruments.
- 15% for judgments from tortious acts or bad faith.
- 10% if the trial is delayed by the plaintiff.
- 10% if the defendant offered a reasonable settlement.
- For Open Account (§ 56-8-5): 15%, can be higher if agreed.
- For Child Support Cases: Max rate 8.75%.
