reglab/statecodes huggingface dataset:
2023 New Mexico Statutes › Chapter 55 - Uniform Commercial Code › Article 2A - Leases › Part 5 - DEFAULT › Section 55-2A-520 - Lessee's incidental and consequential damages.

(1) Incidental damages resulting from a lessor's default include expenses reasonably incurred in inspection, receipt, transportation and care and custody of goods rightfully rejected or goods the acceptance of which is justifiably revoked, any commercially reasonable charges, expenses or commissions in connection with effecting cover, and any other reasonable expense incident to the default.
(2) Consequential damages resulting from a lessor's default include:
(a) any loss resulting from general or particular requirements and needs of which the lessor at the time of contracting had reason to know and which could not reasonably be prevented by cover or otherwise; and
(b) injury to person or property proximately resulting from any breach of warranty.
History:
1978 Comp., § 55-2A-520, enacted by Laws 1992, ch. 114, § 75.
OFFICIAL COMMENTS
UCC Official Comments by ALI & the NCCUSL. Reproduced with permission of the PEB for the UCC. All rights reserved.
Uniform Statutory Source:
— Section 2-715 [55-2-715 NMSA 1978].
Changes:
— Revised to reflect leasing terminology and practices.
Purposes:
— Subsection (1), a revised version of the provisions of Section 2-715(1) [55-2-715 NMSA 1978], lists some examples of incidental damages resulting from a lessor's default; the list is not exhaustive. Subsection (1) makes clear that it applies not only to rightful rejection, but also to justifiable revocation.
Subsection (2), a revised version of the provisions of Section 2-715(2) [55-2-715 NMSA 1978], lists some examples of consequential damages resulting from a lessor's default; the list is not exhaustive.
Cross References:
— Section 2-715 [55-2-715 NMSA 1978].
"Goods". Section 2A-103(1)(h) [55-2A-103 NMSA 1978].
"Knows". Section 1-201(25) [55-1-201 NMSA 1978].
"Lessee". Section 2A-103(1)(n) [55-2A-103 NMSA 1978].
"Lessor". Section 2A-103(1)(p) [55-2A-103 NMSA 1978].
"Person". Section 1-201(30) [55-1-201 NMSA 1978].
"Receipt". Section 2-103(1)(c) [55-2-103 NMSA 1978].
ANNOTATIONS
Effective dates.
— Laws 1992, ch. 114, § 238 made Laws 1992, ch. 114, § 75 effective July 1, 1992.
2023 New Mexico Statutes › Chapter 55 - Uniform Commercial Code › Article 2A - Leases › Part 5 - DEFAULT › Section 55-2A-521 - Lessee's right to specific performance or replevin.

(1) Specific performance may be decreed if the goods are unique or in other proper circumstances.
(2) A decree for specific performance may include any terms and conditions as to payment of the rent, damages or other relief that the court deems just.
(3) A lessee has a right of replevin, detinue, sequestration, claim and delivery, or the like for goods identified to the lease contract if after reasonable effort the lessee is unable to effect cover for those goods or the circumstances reasonably indicate that the effort will be unavailing.
History:
1978 Comp., § 55-2A-521, enacted by Laws 1992, ch. 114, § 76.
OFFICIAL COMMENTS
UCC Official Comments by ALI & the NCCUSL. Reproduced with permission of the PEB for the UCC. All rights reserved.
Uniform Statutory Source:
— Section 2-716 [55-2-716 NMSA 1978].
Changes:
— Revised to reflect leasing practices and terminology, and to expand the reference to the right of replevin in Subsection (3) to include other similar rights of the lessee.
"Delivery". Section 1-201(14) [55-1-201 NMSA 1978].
"Goods". Section 2A-103(1)(h) [55-2A-103 NMSA 1978].
"Lease contract". Section 2A-103(1)(l) [55-2A-103 NMSA 1978].
"Lessee". Section 2A-103(1)(n) [55-2A-103 NMSA 1978].
"Rights". Section 1-201(36) [55-1-201 NMSA 1978].
"Term". Section 1-201(42) [55-1-201 NMSA 1978].
ANNOTATIONS
Effective dates.
— Laws 1992, ch. 114, § 238 made Laws 1992, ch. 114, § 76 effective July 1, 1992.
2023 New Mexico Statutes › Chapter 55 - Uniform Commercial Code › Article 2A - Leases › Part 5 - DEFAULT › Section 55-2A-522 - Lessee's right to goods on lessor's insolvency.

(1) Subject to Subsection (2) and even though the goods have not been shipped, a lessee who has paid a part or all of the rent and security for goods identified to a lease contract (Section 55-2A-217 NMSA 1978) on making and keeping good a tender of any unpaid portion of the rent and security due under the lease contract may recover the goods identified from the lessor if the lessor becomes insolvent within ten days after receipt of the first installment of rent and security.
(2) A lessee acquires the right to recover goods identified to a lease contract only if they conform to the lease contract.
History:
1978 Comp., § 55-2A-522, enacted by Laws 1992, ch. 114, § 77.
OFFICIAL COMMENTS
UCC Official Comments by ALI & the NCCUSL. Reproduced with permission of the PEB for the UCC. All rights reserved.
Uniform Statutory Source:
— Section 2-502 [55-2-502 NMSA 1978].
Changes:
— Revised to reflect leasing practices and terminology.
"Conforming". Section 2A-103(1)(d) [55-2A-103 NMSA 1978].
"Goods". Section 2A-103(1)(h) [55-2A-103 NMSA 1978].
"Insolvent". Section 1-201(23) [55-1-201 NMSA 1978].
"Lease contract". Section 2A-103(1)(l) [55-2A-103 NMSA 1978].
"Lessee". Section 2A-103(1)(n) [55-2A-103 NMSA 1978].
"Lessor". Section 2A-103(1)(p) [55-2A-103 NMSA 1978].
"Receipt". Section 2-103(1)(c) [55-2-103 NMSA 1978].
"Rights". Section 1-201(36) [55-1-201 NMSA 1978].
ANNOTATIONS
Effective dates.
— Laws 1992, ch. 114, § 238 made Laws 1992, ch. 114, § 77 effective July 1, 1992.
2023 New Mexico Statutes › Chapter 55 - Uniform Commercial Code › Article 2A - Leases › Part 5 - DEFAULT › Section 55-2A-524 - Lessor's right to identify goods to lease contract.

(1) After default by the lessee under the lease contract of the type described in Section 55-2A-523(1) NMSA 1978 or 55-2A-523(3)(a) NMSA 1978 or, if agreed, after other default by the lessee, the lessor may:
(a) identify to the lease contract conforming goods not already identified if at the time the lessor learned of the default they were in the lessor's or the supplier's possession or control; and
(b) dispose of goods (Section 55-2A-527(1) NMSA 1978) that demonstrably have been intended for the particular lease contract even though those goods are unfinished.
(2) If the goods are unfinished, in the exercise of reasonable commercial judgment for the purposes of avoiding loss and of effective realization, an aggrieved lessor or the supplier may either complete manufacture and wholly identify the goods to the lease contract or cease manufacture and lease, sell or otherwise dispose of the goods for scrap or salvage value or proceed in any other reasonable manner.
History:
1978 Comp., § 55-2A-524, enacted by Laws 1992, ch. 114, § 79.
OFFICIAL COMMENTS
UCC Official Comments by ALI & the NCCUSL. Reproduced with permission of the PEB for the UCC. All rights reserved.
Uniform Statutory Source:
— Section 2-704 [55-2-704 NMSA 1978].
Changes:
— Revised to reflect leasing practices and terminology.
"Aggrieved party". Section 1-201(2) [55-1-201 NMSA 1978].
"Conforming". Section 2A-103(1)(d) [55-2A-103 NMSA 1978].
"Goods". Section 2A-103(1)(h) [55-2A-103 NMSA 1978].
"Learn". Section 1-201(25) [55-1-201 NMSA 1978].
"Lease". Section 2A-103(1)(j) [55-2A-103 NMSA 1978].
"Lease contract". Section 2A-103(1)(l) [55-2A-103 NMSA 1978].
"Lessor". Section 2A-103(1)(p) [55-2A-103 NMSA 1978].
"Rights". Section 1-201(36) [55-1-201 NMSA 1978].
"Supplier". Section 2A-103(1)(x) [55-2A-103 NMSA 1978].
"Value". Section 1-201(44) [55-1-201 NMSA 1978].
ANNOTATIONS
Effective dates.
— Laws 1992, ch. 114, § 238 made Laws 1992, ch. 114, § 79 effective July 1, 1992.
2023 New Mexico Statutes › Chapter 55 - Uniform Commercial Code › Article 2A - Leases › Part 5 - DEFAULT › Section 55-2A-526 - Lessor's stoppage of delivery in transit or otherwise.

(1) A lessor may stop delivery of goods in the possession of a carrier or other bailee if the lessor discovers the lessee to be insolvent and may stop delivery of carload, truckload, planeload or larger shipments of express or freight if the lessee repudiates or fails to make a payment due before delivery, whether for rent, security or otherwise under the lease contract, or for any other reason the lessor has a right to withhold or take possession of the goods.
(2) In pursuing its remedies under Subsection (1) of this section, the lessor may stop delivery until:
(a) receipt of the goods by the lessee;
(b) acknowledgment to the lessee by any bailee of the goods, except a carrier, that the bailee holds the goods for the lessee; or
(c) such an acknowledgment to the lessee by a carrier via reshipment or as a warehouse.
(3) To stop delivery, a lessor shall so notify as to enable the bailee by reasonable diligence to prevent delivery of the goods.
(4) After notification, the bailee shall hold and deliver the goods according to the directions of the lessor, but the lessor is liable to the bailee for any ensuing charges or damages.
(5) A carrier who has issued a nonnegotiable bill of lading is not obliged to obey a notification to stop received from a person other than the consignor.
History:
1978 Comp., § 55-2A-526, enacted by Laws 1992, ch. 114, § 81; 2005, ch. 144, § 42.
OFFICIAL COMMENTS
UCC Official Comments by ALI & the NCCUSL. Reproduced with permission of the PEB for the UCC. All rights reserved.
Uniform Statutory Source:
— Section 2-705 [55-2-705 NMSA 1978].
Changes:
— Revised to reflect leasing practices and terminology.
"Bill of lading". Section 1-201(6) [55-1-201 NMSA 1978].
"Delivery". Section 1-201(14) [55-1-201 NMSA 1978].
"Discover". Section 1-201(25) [55-1-201 NMSA 1978].
"Goods". Section 2A-103(1)(h) [55-2A-103 NMSA 1978].
"Insolvent". Section 1-201(23) [55-1-201 NMSA 1978].
"Lease contract". Section 2A-103(1)(l) [55-2A-103 NMSA 1978].
"Lessee". Section 2A-103(1)(n) [55-2A-103 NMSA 1978].
"Lessor". Section 2A-103(1)(p) [55-2A-103 NMSA 1978].
"Notifies" and "Notification". Section 1-201(26) [55-1-201 NMSA 1978].
"Person". Section 1-201(30) [55-1-201 NMSA 1978].
"Receipt". Section 2-103(1)(c) [55-2-103 NMSA 1978].
"Remedy". Section 1-201(34) [55-1-201 NMSA 1978].
"Rights". Section 1-201(36) [55-1-201 NMSA 1978].
ANNOTATIONS
The 2005 amendment,
effective January 1, 2006, changed "warehouseman" to "warehouse" in Subsection (2)(c).
2023 New Mexico Statutes › Chapter 55 - Uniform Commercial Code › Article 2A - Leases › Part 5 - DEFAULT › Section 55-2A-530 - Lessor's incidental damages.

Incidental damages to an aggrieved lessor include any commercially reasonable charges, expenses or commissions incurred in stopping delivery, in the transportation, care and custody of goods after the lessee's default, in connection with return or disposition of the goods, or otherwise resulting from the default.
History:
1978 Comp., § 55-2A-530, enacted by Laws 1992, ch. 114, § 85.
OFFICIAL COMMENTS
UCC Official Comments by ALI & the NCCUSL. Reproduced with permission of the PEB for the UCC. All rights reserved.
Uniform Statutory Source:
— Section 2-710 [55-2-710 NMSA 1978].
Changes:
— Revised to reflect leasing practices and terminology.
"Aggrieved party". Section 1-201(2) [55-1-201 NMSA 1978].
"Delivery". Section 1-201(14) [55-1-201 NMSA 1978].
"Goods". Section 2A-103(1)(h) [55-2A-103 NMSA 1978].
"Lessee". Section 2A-103(1)(n) [55-2A-103 NMSA 1978].
"Lessor". Section 2A-103(1)(p) [55-2A-103 NMSA 1978].
ANNOTATIONS
Effective dates.
— Laws 1992, ch. 114, § 238 made Laws 1992, ch. 114, § 85 effective July 1, 1992.
2023 New Mexico Statutes › Chapter 55 - Uniform Commercial Code › Article 2A - Leases › Part 5 - DEFAULT › Section 55-2A-531 - Standing to sue third parties for injury to goods.

(1) If a third party so deals with goods that have been identified to a lease contract as to cause actionable injury to a party to the lease contract (a) the lessor has a right of action against the third party, and (b) the lessee also has a right of action against the third party if the lessee:
(i) has a security interest in the goods;
(ii) has an insurable interest in the goods; or
(iii) bears the risk of loss under the lease contract or has since the injury assumed that risk as against the lessor and the goods have been converted or destroyed.
(2) If at the time of the injury the party plaintiff did not bear the risk of loss as against the other party to the lease contract and there is no arrangement between them for disposition of the recovery, his suit or settlement, subject to his own interest, is as a fiduciary for the other party to the lease contract.
(3) Either party with the consent of the other may sue for the benefit of whom it may concern.
History:
1978 Comp., § 55-2A-531, enacted by Laws 1992, ch. 114, § 86.
OFFICIAL COMMENTS
UCC Official Comments by ALI & the NCCUSL. Reproduced with permission of the PEB for the UCC. All rights reserved.
Uniform Statutory Source:
— Section 2-722 [55-2-722 NMSA 1978].
Changes:
— Revised to reflect leasing practices and terminology.
"Action". Section 1-201(1) [55-1-201 NMSA 1978].
"Goods". Section 2A-103(1)(h) [55-2A-103 NMSA 1978].
"Lease contract". Section 2A-103(1)(l) [55-2A-103 NMSA 1978].
"Lessee". Section 2A-103(1)(n) [55-2A-103 NMSA 1978].
"Lessor". Section 2A-103(1)(p) [55-2A-103 NMSA 1978].
"Party". Section 1-201(29) [55-1-201 NMSA 1978].
"Rights". Section 1-201(36) [55-1-201 NMSA 1978].
"Security interest". Section 1-201(37) [55-1-201 NMSA 1978].
ANNOTATIONS
Effective dates.
— Laws 1992, ch. 114, § 238 made Laws 1992, ch. 114, § 86 effective July 1, 1992.
2023 New Mexico Statutes › Chapter 55 - Uniform Commercial Code › Article 2A - Leases › Part 5 - DEFAULT › Section 55-2A-532 - Lessor's rights to residual interest.

In addition to any other recovery permitted by this article or other law, the lessor may recover from the lessee an amount that will fully compensate the lessor for any loss of or damage to the lessor's residual interest in the goods caused by the default of the lessee.
History:
1978 Comp., § 55-2A-532, enacted by Laws 1992, ch. 114, § 87.
OFFICIAL COMMENTS
UCC Official Comments by ALI & the NCCUSL. Reproduced with permission of the PEB for the UCC. All rights reserved.
Uniform Statutory Source:
— None.
This section recognizes the right of the lessor to recover under this Article (as well as under other law) from the lessee for failure to comply with the lease obligations as to the condition of leased goods when returned to the lessor, for failure to return the goods at the end of the lease, or for any other default which causes loss or injury to the lessor's residual interest in the goods.
ANNOTATIONS
Effective dates.
— Laws 1992, ch. 114, § 238 made Laws 1992, ch. 114, § 87 effective July 1, 1992.
2023 New Mexico Statutes › Chapter 55 - Uniform Commercial Code › Article 3 - Negotiable Instruments › Part 1 - GENERAL PROVISIONS AND DEFINITIONS › Section 55-3-101 - Short title.

This article may be cited as Uniform Commercial Code - Negotiable Instruments.
History:
1978 Comp., § 55-3-101, enacted by Laws 1992, ch. 114, § 88.
ANNOTATIONS
Repeals.
— Laws 1992, ch. 114, § 237 repealed former 55-3-101 NMSA 1978, as enacted by Laws 1961, ch. 96, § 3-101, relating to short title, effective July 1, 1992. Laws 1992, ch. 114, § 88, enacted a new section, effective July 1, 1992.
Effective dates.
— Laws 1992, ch. 114, § 238 made Laws 1992, ch. 114, § 88 the act effective July 1, 1992.
Law reviews.
— For article, "Lender Recourse in Indian Country: A Navajo Case Study," see 21 N.M.L. Rev. 275 (1991).
Am. Jur. 2d, A.L.R. and C.J.S. references. —
11 Am. Jur. 2d Bills and Notes § 42.
2023 New Mexico Statutes › Chapter 55 - Uniform Commercial Code › Article 3 - Negotiable Instruments › Part 1 - GENERAL PROVISIONS AND DEFINITIONS › Section 55-3-105 - Issue of instrument. (Effective January 1, 2024.)

(a) "Issue" means:
(1) the first delivery of an instrument by the maker or drawer, whether to a holder or nonholder, for the purpose of giving rights on the instrument to any person; or
(2) if agreed by the payee, the first transmission by the drawer to the payee of an image of an item and information derived from the item that enables the depositary bank to collect the item by transferring or presenting under federal law an electronic check.
(b) An unissued instrument, or an unissued incomplete instrument that is completed, is binding on the maker or drawer, but nonissuance is a defense. An instrument that is conditionally issued or is issued for a special purpose is binding on the maker or drawer, but failure of the condition or special purpose to be fulfilled is a defense.
(c) "Issuer" applies to issued and unissued instruments and means a maker or drawer of an instrument.
History:
1978 Comp., § 55-3-105, enacted by Laws 1992, ch. 114, § 92; 2023, ch. 142, § 21.
ANNOTATIONS
The 2023 amendment,
effective January 1, 2024, added Paragraph (a)(2).
2023 New Mexico Statutes › Chapter 55 - Uniform Commercial Code › Article 3 - Negotiable Instruments › Part 1 - GENERAL PROVISIONS AND DEFINITIONS › Section 55-3-107 - Instrument payable in foreign money.

Unless the instrument otherwise provides, an instrument that states the amount payable in foreign money may be paid in the foreign money or in an equivalent amount in dollars calculated by using the current bank-offered spot rate at the place of payment for the purchase of dollars on the day on which the instrument is paid.
History:
1978 Comp., § 55-3-107, enacted by Laws 1992, ch. 114, § 94.
OFFICIAL COMMENTS
UCC Official Comments by ALI & the NCCUSL. Reproduced with permission of the PEB for the UCC. All rights reserved.
The definition of instrument in Section 3-104 [55-3-104 NMSA 1978] requires that the promise or order be payable in "money." That term is defined in Section 1-201(24) [55-1-201 NMSA 1978] and is not limited to United States dollars. Section 3-107 [55-3-107 NMSA 1978] states that an instrument payable in foreign money may be paid in dollars if the instrument does not prohibit it. It also states a conversion rate which applies in the absence of a different conversion rate stated in the instrument. The reference in former Section 3-107(1) [55-3-107 NMSA 1978] to instruments payable in "currency" or "current funds" has been dropped as superfluous.
ANNOTATIONS
Repeals.
— Laws 1992, ch. 114, § 237 repealed former 55-3-107 NMSA 1978, as enacted by Laws 1961, ch. 96, § 3-107, relating to money, effective July 1, 1992. Laws 1992, ch. 114, § 94, enacted a new section, effective July 1, 1992. For provisions of former section,
see
the 1991 NMSA 1978 on
NMOneSource.com
.
2023 New Mexico Statutes › Chapter 55 - Uniform Commercial Code › Article 3 - Negotiable Instruments › Part 1 - GENERAL PROVISIONS AND DEFINITIONS › Section 55-3-111 - Place of payment.

Except as otherwise provided for items in Article 4, an instrument is payable at the place of payment stated in the instrument. If no place of payment is stated, an instrument is payable at the address of the drawee or maker stated in the instrument. If no address is stated, the place of payment is the place of business of the drawee or maker. If a drawee or maker has more than one place of business, the place of payment is any place of business of the drawee or maker chosen by the person entitled to enforce the instrument. If the drawee or maker has no place of business, the place of payment is the residence of the drawee or maker.
History:
1978 Comp., § 55-3-111, enacted by Laws 1992, ch. 114, § 98.
OFFICIAL COMMENTS
UCC Official Comments by ALI & the NCCUSL. Reproduced with permission of the PEB for the UCC. All rights reserved.
If an instrument is payable at a bank in the United States, Section 3-501(b)(1) [55-3-501 NMSA 1978] states that presentment must be made at the place of payment,
i.e.
, the bank. The place of presentment of a check is governed by Regulation CC § 229.36.
ANNOTATIONS
Repeals.
— Laws 1992, ch. 114, § 237 repealed former 55-3-111 NMSA 1978, as enacted by Laws 1961, ch. 96, § 3-111, relating to payable to bearer, effective July 1, 1992. Laws 1992, ch. 114, § 98, enacted a new section, effective July 1, 1992. For provisions of former section,
see
the 1991 NMSA 1978 on
NMOneSource.com
. For present comparable provisions,
see
55-3-109 NMSA 1978.
2023 New Mexico Statutes › Chapter 55 - Uniform Commercial Code › Article 3 - Negotiable Instruments › Part 1 - GENERAL PROVISIONS AND DEFINITIONS › Section 55-3-112 - Interest.

(a) Unless otherwise provided in the instrument, (i) an instrument is not payable with interest, and (ii) interest on an interest-bearing instrument is payable from the date of the instrument.
(b) Interest may be stated in an instrument as a fixed or variable amount of money or it may be expressed as a fixed or variable rate or rates. The amount or rate of interest may be stated or described in the instrument in any manner and may require reference to information not contained in the instrument. If an instrument provides for interest, but the amount of interest payable cannot be ascertained from the description, interest is payable at the judgment rate in effect at the place of payment of the instrument and at the time interest first accrues.
History:
1978 Comp., § 55-3-112, enacted by Laws 1992, ch. 114, § 99.
OFFICIAL COMMENTS
UCC Official Comments by ALI & the NCCUSL. Reproduced with permission of the PEB for the UCC. All rights reserved.
1. Under Section 3-104(a) [55-3-104 NMSA 1978] the requirement of a "fixed amount" applies only to principal. The amount of interest payable is that described in the instrument. If the description of interest in the instrument does not allow for the amount of interest to be ascertained, interest is payable at the judgement rate. Hence, if an instrument calls for interest, the amount of interest will always be determinable. If a variable rate of interest is prescribed, the amount of interest is ascertainable by reference to the formula or index described or referred to in the instrument. The last sentence of Subsection (b) replaces Subsection (d) of the former Section 3-118.
2. The purpose of Subsection (b) is to clarify the meaning of "interest" in the introductory clause of Section 3-104(a) [55-3-104 NMSA 1978]. It is not intended to validate a provision for interest in an instrument if that provision violates other law.
ANNOTATIONS
Repeals.
— Laws 1992, ch. 114, § 237 repealed former 55-3-112 NMSA 1978, as enacted by Laws 1961, ch. 96, § 3-112, relating to terms and omissions not affecting negotiability, effective July 1, 1992. Laws 1992, ch. 114, § 99, enacted a new section, effective July 1, 1992. For provisions of former section,
see
the 1991 NMSA 1978 on
NMOneSource.com
.
2023 New Mexico Statutes › Chapter 55 - Uniform Commercial Code › Article 3 - Negotiable Instruments › Part 1 - GENERAL PROVISIONS AND DEFINITIONS › Section 55-3-113 - Date of instrument.

(a) An instrument may be antedated or postdated. The date stated determines the time of payment if the instrument is payable at a fixed period after date. Except as provided in Subsection (c) of Section 55-4-401 NMSA 1978, an instrument payable on demand is not payable before the date of the instrument.
(b) If an instrument is undated, its date is the date of its issue or, in the case of an unissued instrument, the date it first comes into possession of a holder.
History:
1978 Comp., § 55-3-113, enacted by Laws 1992, ch. 114, § 100.
OFFICIAL COMMENTS
UCC Official Comments by ALI & the NCCUSL. Reproduced with permission of the PEB for the UCC. All rights reserved.
This section replaces former Section 3-114. Subsections (1) and (3) of former Section 3-114 are deleted as unnecessary. Section 3-113 (a) [55-3-113 NMSA 1978] is based in part on subsection (2) of former Section 3-114. The rule that a demand instrument is not payable before the date of the instrument is subject to Section 4-401(c) [55-4-401 NMSA 1978] which allows the payor bank to pay a postdated check unless the drawer has notified the bank of the postdating pursuant to a procedure prescribed in that subsection. With respect to an undated instrument, the date is the date of issue.
ANNOTATIONS
Repeals.
— Laws 1992, ch. 114, § 237 repealed former 55-3-113 NMSA 1978, as enacted by Laws 1961, ch. 96, § 3-113, relating to seal, effective July 1, 1992. Laws 1992, ch. 114, § 100, enacted a new section, effective July 1, 1992. For provisions of former section,
see
the 1991 NMSA 1978 on
NMOneSource.com
.
Am. Jur. 2d, A.L.R. and C.J.S. references. —
10 Am. Jur. 2d Banks § 553; 11 Am. Jur. 2d Bills and Notes §§ 88, 208, 285 to 287; 12 Am. Jur. 2d Bills and Notes § 1165.
Right of transferee of postdated check, 21 A.L.R. 234.
Extent of bank's liability for paying postdated check, 31 A.L.R.4th 329.
10 C.J.S. Bills and Notes § 86 et seq.
2023 New Mexico Statutes › Chapter 55 - Uniform Commercial Code › Article 3 - Negotiable Instruments › Part 1 - GENERAL PROVISIONS AND DEFINITIONS › Section 55-3-114 - Contradictory terms of instrument.

If an instrument contains contradictory terms, typewritten terms prevail over printed terms, handwritten terms prevail over both, and words prevail over numbers.
History:
1978 Comp., § 55-3-114, enacted by Laws 1992, ch. 114, § 101.
OFFICIAL COMMENTS
UCC Official Comments by ALI & the NCCUSL. Reproduced with permission of the PEB for the UCC. All rights reserved.
Section 3-114 [55-3-114 NMSA 1978] replaces Subsections (b) and (c) of former Section 3-118.
ANNOTATIONS
Repeals.
— Laws 1992, ch. 114, § 237 repealed former 55-3-114 NMSA 1978, as enacted by Laws 1961, ch. 96, § 3-114, relating to date, effective July 1, 1992. Laws 1992, ch. 114, § 101, enacted a new section, effective July 1, 1992. For provisions of former section,
see
the 1991 NMSA 1978 on
NMOneSource.com
. For present comparable provisions,
see
55-3-113 NMSA 1978.
2023 New Mexico Statutes › Chapter 55 - Uniform Commercial Code › Article 3 - Negotiable Instruments › Part 1 - GENERAL PROVISIONS AND DEFINITIONS › Section 55-3-119 - Notice of right to defend action.

In an action for breach of an obligation for which a third person is answerable over pursuant to Chapter 55, Article 3 or 4 NMSA 1978, the defendant may give the third person notice of the litigation in a record, and the person notified may then give similar notice to any other person who is answerable over. If the notice states: (i) that the person notified may come in and defend; and (ii) that failure to do so will bind the person notified in an action later brought by the person giving the notice as to any determination of fact common to the two litigations, the person notified is so bound unless after seasonable receipt of the notice the person notified does come in and defend.
History:
1978 Comp., § 55-3-119, enacted by Laws 1992, ch. 114, § 106; 2009, ch. 234, § 5.
OFFICIAL COMMENTS
UCC Official Comments by ALI & the NCCUSL. Reproduced with permission of the PEB for the UCC. All rights reserved.
This section is a restatement of former Section 3-803 [repealed].
ANNOTATIONS
Repeals.
— Laws 1992, ch. 114, § 237 repealed former 55-3-119 NMSA 1978, as enacted by Laws 1961, ch. 96, § 3-119, relating to other writings affecting instrument, effective July 1, 1992. Laws 1992, ch. 114, § 106 enacted a new section, effective July 1, 1992. For provisions of former section,
see
the 1991 NMSA 1978 on
NMOneSource.com
. For present comparable provisions,
see
55-3-117 NMSA 1978.
The 2009 amendment,
effective January 1, 2010, added the reference to Chapter 55, Article 3 NMSA 1978 and changed "may give the third person written notice of the litigation" to "may give the third person notice of the litigation in a record".
2023 New Mexico Statutes › Chapter 55 - Uniform Commercial Code › Article 3 - Negotiable Instruments › Part 1 - GENERAL PROVISIONS AND DEFINITIONS › Section 55-3-120 to 55-3-122 - Repealed.

ANNOTATIONS
Repeals.
— Laws 1992, ch. 114, § 237A repealed 55-3-120 to 55-3-122 NMSA 1978, as enacted by Laws 1961, ch. 96, §§ 3-120, 3-121, and amended by Laws 1967, ch. 186, § 8, relating to instruments "payable through" bank, instruments payable at bank, and accrual of cause of action, effective July 1, 1992. For former provisions,
see
the 1991 NMSA 1978 on
NMOneSource.com
.
2023 New Mexico Statutes › Chapter 55 - Uniform Commercial Code › Article 3 - Negotiable Instruments › Part 2 - NEGOTIATION, TRANSFER AND INDORSEMENT › Section 55-3-208 - Repealed.

ANNOTATIONS
Repeals.
— Laws 1992, ch. 114, § 237A repealed 55-3-208 NMSA 1978, as enacted by Laws 1961, ch. 96, § 3-208, relating to reacquisition, effective July 1, 1992. For provisions of former section,
see
the 1991 NMSA 1978 on
NMOneSource.com
.
2023 New Mexico Statutes › Chapter 55 - Uniform Commercial Code › Article 3 - Negotiable Instruments › Part 3 - ENFORCEMENT OF INSTRUMENTS › Section 55-3-304 - Overdue instrument.

(a) An instrument payable on demand becomes overdue at the earliest of the following times:
(1) on the day after the day demand for payment is duly made;
(2) if the instrument is a check, ninety days after its date; or
(3) if the instrument is not a check, when the instrument has been outstanding for a period of time after its date which is unreasonably long under the circumstances of the particular case in light of the nature of the instrument and usage of the trade.
(b) With respect to an instrument payable at a definite time the following rules apply:
(1) If the principal is payable in installments and a due date has not been accelerated, the instrument becomes overdue upon default under the instrument for nonpayment of an installment, and the instrument remains overdue until the default is cured.
(2) If the principal is not payable in installments and the due date has not been accelerated, the instrument becomes overdue on the day after the due date.
(3) If a due date with respect to principal has been accelerated, the instrument becomes overdue on the day after the accelerated due date.
(c) Unless the due date of principal has been accelerated, an instrument does not become overdue if there is default in payment of interest but no default in payment of principal.
History:
1978 Comp., § 55-3-304, enacted by Laws 1992, ch. 114, § 117.
OFFICIAL COMMENTS
UCC Official Comments by ALI & the NCCUSL. Reproduced with permission of the PEB for the UCC. All rights reserved.
1. To be a holder in due course, one must take without notice that an instrument is overdue. Section 3-302(a)(2)(iii) [55-3-302 NMSA 1978]. Section 3-304 [55-3-304 NMSA 1978] replaces Subsection (3) of former Section 3-304. For the sake of clarity it treats demand and time instruments separately. Subsection (a) applies to demand instruments. A check becomes stale after 90 days.
Under former Section 3-304(3)(c), a holder that took a demand note had notice that it was overdue if it was taken "more than a reasonable length of time after its issue." In substitution for this test, Subsection (a)(3) requires the trier of fact to look at both the circumstances of the particular case and the nature of the instrument and trade usage. Whether a demand note is stale may vary a great deal depending upon the facts of the particular case.
2. Subsections (b) and (c) cover time instruments. They follow the distinction made under former Article 3 between defaults in payment of principal and interest. In Subsection (b) installment instruments and single payment instruments are treated separately. If an installment is late, the instrument is overdue until the default is cured.
ANNOTATIONS
Repeals.
— Laws 1992, ch. 114, § 237 repealed former 55-3-304 NMSA 1978, as enacted by Laws 1961, ch. 96, § 3-304, relating to notice to purchaser, effective July 1, 1992. Laws 1992, ch. 114, § 117, enacted a new section, effective July 1, 1992. For provisions of former section,
see
the 1991 NMSA 1978 on
NMOneSource.com
.
2023 New Mexico Statutes › Chapter 55 - Uniform Commercial Code › Article 3 - Negotiable Instruments › Part 3 - ENFORCEMENT OF INSTRUMENTS › Section 55-3-306 - Claims to an instrument.

A person taking an instrument, other than a person having rights of a holder in due course, is subject to a claim of a property or possessory right in the instrument or its proceeds, including a claim to rescind a negotiation and to recover the instrument or its proceeds. A person having rights of a holder in due course takes free of the claim to the instrument.
History:
1978 Comp., § 55-3-306, enacted by Laws 1992, ch. 114, § 119.
OFFICIAL COMMENTS
UCC Official Comments by ALI & the NCCUSL. Reproduced with permission of the PEB for the UCC. All rights reserved.
This section expands on the reference to "claims to" the instrument mentioned in former Sections 3-305 [55-3-305 NMSA 1978] and 3-306 [55-3-306 NMSA 1978]. Claims covered by the section include not only claims to ownership but also any other claim of a property or possessory right. It includes the claim to a lien or the claim of a person in rightful possession of an instrument who was wrongfully deprived of possession. Also included is a claim based on Section 3-202(b) [55-3-202 NMSA 1978] or rescission of a negotiation of the instrument by the claimant. Claims to an instrument under Section 3-306 are different from claims in recoupment referred to in Section 3-305(a)(3). The rule of this section is similar to the rule of Article 30(2) of the Convention on International Bills of Exchange and International Promissory Notes.
ANNOTATIONS
Repeals.
— Laws 1992, ch. 114, § 237 repealed former 55-3-306 NMSA 1978, as enacted by Laws 1961, ch. 96, § 3-306, relating to rights of one not holder in due course, effective July 1, 1992. Laws 1992, ch. 114, § 119, enacted a new section, effective July 1, 1992. For provisions of former section,
see
the 1991 NMSA 1978 on
NMOneSource.com
.
2023 New Mexico Statutes › Chapter 55 - Uniform Commercial Code › Article 3 - Negotiable Instruments › Part 3 - ENFORCEMENT OF INSTRUMENTS › Section 55-3-309 - Enforcement of lost, destroyed or stolen instrument. (Effective January 1, 2024.)

(a) A person not in possession of an instrument is entitled to enforce the instrument if:
(1) the person seeking to enforce the instrument:
(A) was entitled to enforce the instrument when loss of possession occurred; or
(B) has directly or indirectly acquired ownership of the instrument from a person who was entitled to enforce the instrument when loss of possession occurred;
(2) the loss of possession was not the result of a transfer by the person or a lawful seizure; and
(3) the person cannot reasonably obtain possession of the instrument because the instrument was destroyed, its whereabouts cannot be determined or it is in the wrongful possession of an unknown person or a person that cannot be found or is not amenable to service of process.
(b) A person seeking enforcement of an instrument under Subsection (a) of this section must prove the terms of the instrument and the person's right to enforce the instrument. If that proof is made, Section 55-3-308 NMSA 1978 applies to the case as if the person seeking enforcement had produced the instrument. The court may not enter judgment in favor of the person seeking enforcement unless it finds that the person required to pay the instrument is adequately protected against loss that might occur by reason of a claim by another person to enforce the instrument. Adequate protection may be provided by any reasonable means.
History:
1978 Comp., § 55-3-309, enacted by Laws 1992, ch. 114, § 122; 2023, ch. 142, § 22.
ANNOTATIONS
The 2023 amendment,
effective January 1, 2024, revised provisions related to the entitlement of enforcing an instrument when a person is not in possession of the instrument; in Subsection (a), deleted "(i) the person was in possession of the instrument and entitled to enforce it when loss of possession occurred, (ii) the loss of possession was not the result of a transfer by the person or a lawful seizure and (iii)"; added Paragraphs (a)(1), (a)(2) and paragraph designation "(3)"; and in Subsection (b), after "Subsection (a), added "of this section".
2023 New Mexico Statutes › Chapter 55 - Uniform Commercial Code › Article 3 - Negotiable Instruments › Part 4 - LIABILITY OF PARTIES › Section 55-3-401 - Signature. (Effective January 1, 2024.)

A person is not liable on an instrument unless (i) the person signed the instrument or (ii) the person is represented by an agent or representative who signed the instrument and the signature is binding on the represented person under Section 55-3-402 NMSA 1978.
History:
1978 Comp., § 55-3-401, enacted by Laws 1992, ch. 114, § 126; 2023, ch. 142, § 23.
ANNOTATIONS
The 2023 amendment,
effective January 1, 2024, removed a provision related to how a signature may be accomplished; and deleted former Subsection (b), which provided "A signature may be made (i) manually or by means of a device or machine and (ii) by the use of any name, including a trade or assumed name, or by a word, mark or symbol executed or adopted by a person with present intention to authenticate a writing.".
2023 New Mexico Statutes › Chapter 55 - Uniform Commercial Code › Article 3 - Negotiable Instruments › Part 4 - LIABILITY OF PARTIES › Section 55-3-408 - Drawee not liable on unaccepted draft.

A check or other draft does not of itself operate as an assignment of funds in the hands of the drawee available for its payment, and the drawee is not liable on the instrument until the drawee accepts it.
History:
1978 Comp., § 55-3-408, enacted by Laws 1992, ch. 114, § 133.
OFFICIAL COMMENTS
UCC Official Comments by ALI & the NCCUSL. Reproduced with permission of the PEB for the UCC. All rights reserved.
1. This section is a restatement of former section 3-409(1). Subsection (2) of former Section 3-409 is deleted as misleading and superfluous. Comment 3 says of Subsection (2): "It is intended to make it clear that this section does not in any way affect any liability which may arise apart from the instrument." In reality Subsection (2) did not make anything clear and was a source of confusion. If all it meant was that a bank that has not certified a check may engage in other conduct that might make it liable to a holder, it stated the obvious and was superfluous. Section 1-103 [55-1-103 NMSA 1978] is adequate to cover those cases.
2. Liability with respect to drafts may arise under other law. For example, Section 4-302 [55-4-302 NMSA 1978] imposes liability on a payor bank for late return of an item.
ANNOTATIONS
Repeals.
— Laws 1992, ch. 114, § 237 repealed former 55-3-408 NMSA 1978, as enacted by Laws 1961, ch. 96, § 3-408, relating to consideration, effective July 1, 1992. Laws 1992, ch. 114, § 133, enacted a new section, effective July 1, 1992. For provisions of former section,
see
the 1991 NMSA 1978 on
NMOneSource.com
.
2023 New Mexico Statutes › Chapter 55 - Uniform Commercial Code › Article 3 - Negotiable Instruments › Part 4 - LIABILITY OF PARTIES › Section 55-3-410 - Acceptance varying draft.

(a) If the terms of a drawee's acceptance vary from the terms of the draft as presented, the holder may refuse the acceptance and treat the draft as dishonored. In that case, the drawee may cancel the acceptance.
(b) The terms of a draft are not varied by an acceptance to pay at a particular bank or place in the United States, unless the acceptance states that the draft is to be paid only at that bank or place.
(c) If the holder assents to an acceptance varying the terms of a draft, the obligation of each drawer and indorser that does not expressly assent to the acceptance is discharged.
History:
1978 Comp., § 55-3-410, enacted by Laws 1992, ch. 114, § 135.
OFFICIAL COMMENTS
UCC Official Comments by ALI & the NCCUSL. Reproduced with permission of the PEB for the UCC. All rights reserved.
1. This section is a restatement of former Section 3-412. It applies to conditional acceptances, acceptances for part of the amount, acceptances to pay at a different time from that required by the draft, or to the acceptance of less than all of the drawees. It applies to any other engagement changing the essential terms of the draft. If the drawee makes a varied acceptance the holder may either reject it or assent to it. The holder may reject by insisting on acceptance of the draft as presented. Refusal by the drawee to accept the draft as presented is dishonor. In that event the drawee is not bound by the varied acceptance and is entitled to have it canceled.
If the holder assents to the varied acceptance, the drawee's obligation as acceptor is according to the terms of the varied acceptance. Under subsection (c) the effect of the holder's assent is to discharge any drawer or indorser who does not also assent. The assent of the drawer or indorser must be affirmatively expressed. Mere failure to object within a reasonable time is not assent which will prevent the discharge.
2. Under subsection (b) an acceptance does not vary from the terms of the draft if it provides for payment at any particular bank or place in the United States unless the acceptance states that the draft is to be paid only at such bank or place. Section 3-501(b)(1) [55-3-501 NMSA 1978] states that if an instrument is payable at a bank in the United States presentment must be made at the place of payment (Section 3-111) [55-3-111 NMSA 1978] which in this case is at the designated bank.
ANNOTATIONS
Repeals.
— Laws 1992, ch. 114, § 237 repealed former 55-3-410 NMSA 1978, as enacted by Laws 1961, ch. 96, § 3-410, relating to definition and operation of acceptance, effective July 1, 1992. Laws 1992, ch. 114, § 135, enacted a new section, effective July 1, 1992. For provisions of former section,
see
the 1991 NMSA 1978 on
NMOneSource.com
. For present comparable provisions,
see
55-3-409 NMSA 1978.
Am. Jur. 2d, A.L.R. and C.J.S. references. —
11 Am. Jur. 2d Bills and Notes §§ 515, 517, 518, 520.
10 C.J.S. Bills and Notes §§ 38, 160.
2023 New Mexico Statutes › Chapter 55 - Uniform Commercial Code › Article 3 - Negotiable Instruments › Part 4 - LIABILITY OF PARTIES › Section 55-3-412 - Obligation of issuer of note or cashier's check.

The issuer of a note or cashier's check or other draft drawn on the drawer is obliged to pay the instrument (i) according to its terms at the time it was issued or, if not issued, at the time it first came into possession of a holder, or (ii) if the issuer signed an incomplete instrument, according to its terms when completed, to the extent stated in Sections 55-3-115 and 55-3-407 NMSA 1978. The obligation is owed to a person entitled to enforce the instrument or to an indorser who paid the instrument under Section 55-3-415 NMSA 1978.
History:
1978 Comp., § 55-3-412, enacted by Laws 1992, ch. 114, § 137.
OFFICIAL COMMENTS
UCC Official Comments by ALI & the NCCUSL. Reproduced with permission of the PEB for the UCC. All rights reserved.
1. The obligations of the maker, acceptor, drawer, and indorser are stated in four separate sections. Section 3-412 [55-3-412 NMSA 1978] states the obligation of the maker of a note and is consistent with former Section 3-413(1). Section 3-412 [55-3-412 NMSA 1978] also applies to the issuer of a cashier's check or other draft drawn on the drawer. Under former Section 3-118(a), since a cashier's check or other draft drawn on the drawer was "effective as a note," the drawer was liable under former Section 3-413(1) as a maker. Under Sections 3-103(a)(6) and 3-104(f) [55-3-103 and 55-3-104 NMSA 1978, respectively] a cashier's check or other draft drawn on the drawer is treated as a draft to reflect common commercial usage, but the liability of the drawer is stated by Section 3-412 [55-3-412 NMSA 1978] as being the same as that of the maker of a note rather than that of the drawer of a draft. Thus, Section 3-412 [55-3-412 NMSA 1978] does not in substance change former law.
2. Under Section 3-105(b) [55-3-105 NMSA 1978] nonissuance of either a complete or incomplete instrument is a defense by a maker or drawer against a person that is not a holder in due course.
3. The obligation of the maker may be modified in the case of alteration if, under Section 3-406 [55-3-406 NMSA 1978], the maker is precluded from asserting the alteration.
4. The rule of this section is similar to the rule of Article 39 of the Convention on International Bills of Exchange and International Promissory Notes.
ANNOTATIONS
Repeals.
— Laws 1992, ch. 114, § 237 repealed former 55-3-412 NMSA 1978, as enacted by Laws 1967, ch. 186, § 10, relating to acceptance varying draft, effective July 1, 1992. Laws 1992, ch. 114, § 137, enacted a new section, effective July 1, 1992. For provisions of former section,
see
the 1991 NMSA on
NMOneSource.com
. For present comparable provisions, see 55-3-410 NMSA 1978.
Compiler's notes.
— Laws 1967, ch. 186, § 11, is compiled as 55-3-504 NMSA 1978.
2023 New Mexico Statutes › Chapter 55 - Uniform Commercial Code › Article 3 - Negotiable Instruments › Part 5 - DISHONOR › Section 55-3-504 - Excused presentment and notice of dishonor.

(a) Presentment for payment or acceptance of an instrument is excused if (i) the person entitled to present the instrument cannot with reasonable diligence make presentment, (ii) the maker or acceptor has repudiated an obligation to pay the instrument or is dead or in insolvency proceedings, (iii) by the terms of the instrument presentment is not necessary to enforce the obligation of indorsers or the drawer, (iv) the drawer or indorser whose obligation is being enforced has waived presentment or otherwise has no reason to expect or right to require that the instrument be paid or accepted, or (v) the drawer instructed the drawee not to pay or accept the draft or the drawee was not obligated to the drawer to pay the draft.
(b) Notice of dishonor is excused if (i) by the terms of the instrument notice of dishonor is not necessary to enforce the obligation of a party to pay the instrument, or (ii) the party whose obligation is being enforced waived notice of dishonor. A waiver of presentment is also a waiver of notice of dishonor.
(c) Delay in giving notice of dishonor is excused if the delay was caused by circumstances beyond the control of the person giving the notice and the person giving the notice exercised reasonable diligence after the cause of the delay ceased to operate.
History:
1978 Comp., § 55-3-504, enacted by Laws 1992, ch. 114, § 149.
OFFICIAL COMMENTS
UCC Official Comments by ALI & the NCCUSL. Reproduced with permission of the PEB for the UCC. All rights reserved.
Section 3-504 [55-3-504 NMSA 1978] is largely a restatement of former Section 3-511 [repealed]. Subsection (4) of former Section 3-511 is replaced by Section 3-502(f) [55-3-502 NMSA 1978].
ANNOTATIONS
Repeals.
— Laws 1992, ch. 114, § 237 repealed former 55-3-504 NMSA 1978, as enacted by Laws 1961, ch. 96, § 3-504, relating to how presentment made, effective July 1, 1992. Laws 1992, ch. 114, § 149, enacted a new section, effective July 1, 1992. For provisions of former section,
see
the 1991 NMSA 1978 on
NMOneSource.com
.