This study presents results from a nonce-word elicited production task and a reading experiment using event-related brain potentials (ERPs) investigating finite forms of Spanish verbs which consist of marked stems and regular person and number agreement suffixes. The first experiment showed that unmarked stems are productively extended to nonce words, whereas marked stems generalize more restrictively to nonce words, based on lexical similarity to existing stem forms. The second experiment yielded a lexical ERP signature for stem violations and an ERP pattern signaling morpho-syntactic (rule-based) processing for suffix violations. We argue that stem allomorphy is lexically represented in the Spanish mental lexicon, with marked stems forming subnodes of structured lexical entries.