NM Stat § 55-7-602 (2021)
2021 New Mexico Statutes|Chapter 55 - Uniform Commercial Code|Article 7 - Documents of Title|Part 6 - WAREHOUSE RECEIPTS AND BILLS OF LADING; MISCELLANEOUS PROVISIONS|Section 55-7-602 - Judicial process against goods covered by negotiable document of title.

Unless a document of title was originally issued upon delivery of the goods by a person that did not have power to dispose of them, a lien does not attach by virtue of any judicial process to goods in the possession of a bailee for which a negotiable document of title is outstanding unless possession or control of the document is first surrendered to the bailee or the document's negotiation is enjoined. The bailee may not be compelled to deliver the goods pursuant to process until possession or control of the document is surrendered to the bailee or to the court. A purchaser of the document for value without notice of the process or injunction takes free of the lien imposed by judicial process. History: 1953 Comp., § 50A-7-602, enacted by Laws 1961, ch. 96, § 7-602; 2005, ch. 144, § 90. ANNOTATIONSOFFICIAL COMMENTS UCC Official Comments by ALI & the NCCUSL. Reproduced with permission of the PEB for the UCC. All rights reserved. Prior Uniform Statutory Provisions. — Former Section 7-602 [55-7-602 NMSA 1978]. Changes. — Changes to accommodate electronic documents of title and for style. 1. The purpose of the section is to protect the bailee from conflicting claims of the document of title holder and the judgment creditors of the person who deposited the goods. The rights of the former prevail unless, in effect, the judgment creditors immobilize the negotiable document of title through the surrender of possession of a tangible document or control of an electronic document. However, if the document of title was issued upon deposit of the goods by a person who had no power to dispose of the goods so that the document is ineffective to pass title, judgment liens are valid to the extent of the debtor's interest in the goods. 2. The last sentence covers the possibility that the holder of a document who has been enjoined from negotiating it will violate the injunction by negotiating to an innocent purchaser for value. In such case the lien will be defeated. Cross References. — Sections 7-106 [55-7-106 NMSA 1978] and 7-501 [55-7-501 NMSA 1978] through 7-503 [55-7-503 NMSA 1978]. "Bailee". Section 7-102 [55-7-102 NMSA 1978]. "Delivery". Section 1-201 [55-1-201 NMSA 1978]. "Document of title". Section 1-201. "Goods". Section 7-102. "Notice". Section 1-202 [55-1-202 NMSA 1978]. "Person". Section 1-201. "Purchase". Section 1-201. "Value". Section 1-204 [55-1-204 NMSA 1978]. Repeals and reenactments. — Laws 2005, ch. 144, § 90, effective January 1, 2006, repealed former 55-7-602 NMSA 1978 as enacted by Laws 1961, ch. 96, § 7-602, and enacted a new section. Pursuant to 12-2A-14 NMSA 1978, the 2005 revision is considered an amendment rather than a new enactment. Law reviews. — For article, "Attachment in New Mexico - Part II," see 2 Nat. Resources J. 75 (1962). Am. Jur. 2d, A.L.R. and C.J.S. references. — 6 Am. Jur. 2d Attachment and Garnishment § 144 et seq.; 68A Am. Jur. 2d Secured Transactions § 572; 78 Am. Jur. 2d Warehouses §§ 107, 224. Attachment or garnishment of goods covered by negotiable warehouse receipt, 40 A.L.R. 969. Garnishment of carrier in respect of goods shipped, 46 A.L.R. 933. Uniform warehouse receipts as affecting liens on the property represented by the receipts, 61 A.L.R. 949. Allowance of attorneys' fees to party interpleading claimants to funds or property, 48 A.L.R.2d 190. 7 C.J.S. Attachment § 273; 33 C.J.S. Execution § 142 et seq.