NM Stat § 55-7-401 (2021)
2021 New Mexico Statutes|Chapter 55 - Uniform Commercial Code|Article 7 - Documents of Title|Part 4 - WAREHOUSE RECEIPTS AND BILLS OF LADING; GENERAL OBLIGATIONS|Section 55-7-401 - Irregularities in issue of receipt or bill or conduct of issuer.

The obligations imposed by Chapter 55, Article 7 NMSA 1978 on an issuer apply to a document of title even if: (1) the document does not comply with the requirements of Chapter 55, Article 7 NMSA 1978 or of any other statute, rule or regulation regarding its issuance, form or content; (2) the issuer violated laws regulating the conduct of its business; (3) the goods covered by the document were owned by the bailee when the document was issued; or (4) the person issuing the document is not a warehouse, but the document purports to be a warehouse receipt. History: 1953 Comp., § 50A-7-401, enacted by Laws 1961, ch. 96, § 7-401; 2005, ch. 144, § 76. ANNOTATIONSOFFICIAL COMMENTS UCC Official Comments by ALI & the NCCUSL. Reproduced with permission of the PEB for the UCC. All rights reserved. Prior Uniform Statutory Provision. — Former Section 7-401 [55-7-401 NMSA 1978]. Changes. — Changes for style only. The bailee's liability on its document despite non-receipt or misdescription of the goods is affirmed in Sections 7-203 [55-7-203 NMSA 1978] and 7-301 [55-7-301 NMSA 1978]. The purpose of this section is to make it clear that regardless of irregularities a document which falls within the definition of document of title imposes on the issuer the obligations stated in this Article. For example, a bailee will not be permitted to avoid its obligation to deliver the goods (Section 7-403 [55-7-403 NMSA 1978]) or its obligation of due care with respect to them (Sections 7-204 [55-7-204 NMSA 1978] and 7-309 [55-7-309 NMSA 1978]) by taking the position that no valid "document" was issued because it failed to file a statutory bond or did not pay stamp taxes or did not disclose the place of storage in the document. Tate v. Action Moving & Storage, Inc., 383 S.E.2d 229 (N.C. App. 1989), rev. denied 389 S.E.2d 104 (N.C. 1990). Sanctions against violations of statutory or administrative duties with respect to documents should be limited to revocation of license or other measures prescribed by the regulation imposing the duty. See Section 7-103 [55-7-103 NMSA 1978]. Cross References. — Sections 7-103 [55-7-103 NMSA 1978], 7-203 [55-7-203 NMSA 1978], 7-204 [55-7-204 NMSA 1978], 7-301 [55-7-301 NMSA 1978], 7-309 [55-7-309 NMSA 1978]. "Bailee". Section 7-102 [55-7-102 NMSA 1978]. "Document of title". Section 1-201 [55-1-201 NMSA 1978]. "Goods". Section 7-102. "Issuer". Section 7-102. "Person". Section 1-201. "Warehouse receipt". Section 1-201. "Warehouse". Section 7-102. Repeals and reenactments. — Laws 2005, ch. 144, § 76, effective January 1, 2006, repealed former 55-7-401 NMSA 1978 as enacted by Laws 1961, ch. 96, § 7-401, and enacted a new section. Pursuant to 12-2A-14 NMSA 1978, the 2005 revision is considered an amendment rather than a new enactment. Am. Jur. 2d, A.L.R. and C.J.S. references. — 15A Am. Jur. 2d Commercial Code § 47; 78 Am. Jur. 2d Warehouses §§ 40, 42. Provision in warehouseman's receipt limiting liability as applicable where warehouseman converts property, 99 A.L.R. 266. Legal effect of transaction by which commodity is received for storage by one who has not complied with statutory conditions necessary to become a public warehouseman, 108 A.L.R. 928. 13 C.J.S. Carriers § 392; 80 C.J.S. Shipping § 260 et seq.; 93 C.J.S. Warehousemen and Safe Depositaries § 20.