New Mexico Convertible Promissory Note Overview
A convertible promissory note in New Mexico is a debt instrument commonly used in startup financing that converts into equity upon a triggering event. As a security, it must comply with both federal regulations (SEC Rule 506 under Regulation D) and New Mexico's state securities laws. The primary state exemption is: Section 58-13C-202 exemption.
New Mexico requires Form D filing required when issuing convertible notes. The state provides standard protections for note holders through its securities regulatory framework. The interest rate must comply with New Mexico's 15% usury limit, though most convertible note rates (2-8%) fall well below this threshold. Companies should work with an attorney familiar with New Mexico securities law to ensure full compliance.
Available
Securities exemption
Required
SOS filing
15%
Usury rate
Standard
Investor protections
New Mexico Requirements
New Mexico has specific requirements for convertible promissory notes that both parties should understand before entering into the agreement.
- Interest Rate: Must not exceed New Mexico's usury limit of 15%
- Written Agreement: Must be in writing and signed by the borrower (maker)
- Clear Terms: Principal amount, interest rate, payment schedule, and maturity date must be clearly stated
- Default Terms: Late fees, grace periods, and acceleration clause must comply with New Mexico law
- Governing Law: The note should specify New Mexico as the governing jurisdiction
How to Create a New Mexico Convertible Promissory Note
Follow these steps to create a New Mexico-compliant convertible promissory note using our template.
Enter Party Information
Provide the full legal names and New Mexico addresses of both the lender (payee) and borrower (maker). Include the date the note is being executed.
Define Loan Terms
Specify the principal amount, interest rate (within New Mexico's 15% usury limit), payment schedule, and maturity date. Our template calculates the payment breakdown automatically.
Set Default and Late Payment Terms
Define the grace period, late fee amount, acceleration clause triggers, and notice requirements. Our New Mexico template includes compliant default language.
Sign and Execute
The borrower must sign and date the note. Consider notarization for added legal protection. Both parties should retain a copy. If secured by collateral, file the appropriate security instrument with New Mexico's recording office.
Securities Compliance in New Mexico
When issuing convertible promissory notes in New Mexico, you must comply with the state securities exemption (Section 58-13C-202 exemption), file the required Form D filing required, ensure the interest rate stays within the 15% usury limit, and follow New Mexico's investor protection requirements (standard protections). Federal Form D must be filed with the SEC within 15 days of the first sale. Our New Mexico-specific template ensures compliance with both state and federal securities regulations.
New Mexico Usury Warning
New Mexico's usury limit is 15%. Charging interest above this rate can render your promissory note unenforceable and may subject the lender to penalties under New Mexico law. Our template automatically validates your interest rate against New Mexico's current limits.
New Mexico Convertible Promissory Note FAQ
Answers to common questions about convertible promissory notes in New Mexico.
Official New Mexico Resources
Use these official resources to verify New Mexico requirements for your convertible promissory note.
Other New Mexico Promissory Note Types
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Create your New Mexico Convertible Promissory Note in under 5 minutes.
Answer a few questions and download a New Mexico-compliant document, ready for the state agency.