reglab/statecodes huggingface dataset:
2023 New Mexico Statutes › Chapter 55 - Uniform Commercial Code › Article 4A - Funds Transfers › Part 3 - EXECUTION OF SENDER'S PAYMENT ORDER › Section 55-4A-305 - Liability for late or improper execution or failure to execute payment order. (Effective January 1, 2024.)

(a) If a funds transfer is completed but the execution of a payment order by the receiving bank in breach of Section 55-4A-302 NMSA 1978 results in delay in payment to the beneficiary, the bank is obliged to pay interest to either the originator or the beneficiary of the funds transfer for the period of delay caused by the improper execution. Except as provided in Subsection (c) of this section, additional damages are not recoverable.
(b) If execution of a payment order by a receiving bank in breach of Section 55-4A-302 NMSA 1978 results in (i) noncompletion of the funds transfer, (ii) failure to use an intermediary bank designated by the originator or (iii) issuance of a payment order that does not comply with the terms of the payment order of the originator, the bank is liable to the originator for its expenses in the funds transfer and for incidental expenses and interest losses, to the extent not covered by Subsection (a) of this section, resulting from the improper execution. Except as provided in Subsection (c) of this section, additional damages are not recoverable.
(c) In addition to the amounts payable under Subsections (a) and (b) of this section, damages, including consequential damages, are recoverable to the extent provided in an express agreement of the receiving bank, evidenced by a record.
(d) If a receiving bank fails to execute a payment order it was obliged by express agreement to execute, the receiving bank is liable to the sender for its expenses in the transaction and for incidental expenses and interest losses resulting from the failure to execute. Additional damages, including consequential damages, are recoverable to the extent provided in an express agreement of the receiving bank, evidenced by a record, but are not otherwise recoverable.
(e) Reasonable attorney fees are recoverable if demand for compensation under Subsection (a) or (b) of this section is made and refused before an action is brought on the claim. If a claim is made for breach of an agreement under Subsection (d) of this section and the agreement does not provide for damages, reasonable attorney fees are recoverable if demand for compensation under Subsection (d) of this section is made and refused before an action is brought on the claim.
(f) Except as stated in this section, the liability of a receiving bank under Subsections (a) and (b) of this section may not be varied by agreement.
History:
1978 Comp., § 55-4A-305, enacted by Laws 1992, ch. 114, § 221; 2023, ch. 142, § 33.
ANNOTATIONS
The 2023 amendment,
effective January 1, 2024, added "of this section" throughout; and in Subsections (c) and (d), deleted "written", and after "receiving bank", added "evidenced by a record".
2023 New Mexico Statutes › Chapter 55 - Uniform Commercial Code › Article 4A - Funds Transfers › Part 4 - PAYMENT › Section 55-4A-401 - Payment date.

"Payment date" of a payment order means the day on which the amount of the order is payable to the beneficiary by the beneficiary's bank. The payment date may be determined by instruction of the sender but cannot be earlier than the day the order is received by the beneficiary's bank and, unless otherwise determined, is the day the order is received by the beneficiary's bank.
History:
1978 Comp., § 55-4A-401, enacted by Laws 1992, ch. 114, § 222.
OFFICIAL COMMENTS
UCC Official Comments by ALI & the NCCUSL. Reproduced with permission of the PEB for the UCC. All rights reserved.
"Payment date" refers to the day the beneficiary's bank is to pay the beneficiary. The payment date may be expressed in various ways so long as it indicates the day the beneficiary is to receive payment. For example, in ACH transfers the payment date is the equivalent of "settlement date" or "effective date." Payment date applies to the payment order issued to the beneficiary's bank, but a payment order issued to a receiving bank other than the beneficiary's bank may also state a date for payment to the beneficiary. In the latter case, the statement of a payment date is to instruct the receiving bank concerning time of execution of the sender's order. Section 4A-301(b) [55-4A-301 NMSA 1978].
ANNOTATIONS
Effective dates.
— Laws 1992, ch. 114, § 238 made the act effective July 1, 1992.
2023 New Mexico Statutes › Chapter 55 - Uniform Commercial Code › Article 4A - Funds Transfers › Part 5 - MISCELLANEOUS PROVISIONS › Section 55-4A-503 - Injunction or restraining order with respect to funds transfer.

For proper cause and in compliance with applicable law, a court may restrain (i) a person from issuing a payment order to initiate a funds transfer, (ii) an originator's bank from executing the payment order of the originator, or (iii) the beneficiary's bank from releasing funds to the beneficiary or the beneficiary from withdrawing the funds. A court may not otherwise restrain a person from issuing a payment order, paying or receiving payment of a payment order or otherwise acting with respect to a funds transfer.
History:
1978 Comp., § 55-4A-503, enacted by Laws 1992, ch. 114, § 230.
OFFICIAL COMMENTS
UCC Official Comments by ALI & the NCCUSL. Reproduced with permission of the PEB for the UCC. All rights reserved.
This section is related to Section 4A-502(d) [55-4A-502 NMSA 1978] and to Comment 4 to Section 4A-502. It is designed to prevent interruption of a funds transfer after it has been set in motion. The initiation of a funds transfer can be prevented by enjoining the originator or the originator's bank from issuing a payment order. After the funds transfer is completed by acceptance of a payment order by the beneficiary's bank, that bank can be enjoined from releasing funds to the beneficiary or the beneficiary can be enjoined from withdrawing the funds. No other injunction is permitted. In particular, intermediary banks are protected, and injunctions against the originator and the originator's bank are limited to issuance of a payment order. Except for the beneficiary's bank, nobody can be enjoined from paying a payment order, and no receiving bank can be enjoined from receiving payment from the sender of the order that it accepted.
ANNOTATIONS
Effective dates.
— Laws 1992, ch. 114, § 238 made the act effective July 1, 1992.
2023 New Mexico Statutes › Chapter 55 - Uniform Commercial Code › Article 4A - Funds Transfers › Part 5 - MISCELLANEOUS PROVISIONS › Section 55-4A-504 - Order in which items and payment orders may be charged to account; order of withdrawals from account.

(a) If a receiving bank has received more than one payment order of the sender or one or more payment orders and other items that are payable from the sender's account, the bank may charge the sender's account with respect to the various orders and items in any sequence.
(b) In determining whether a credit to an account has been withdrawn by the holder of the account or applied to a debt of the holder of the account, credits first made to the account are first withdrawn or applied.
History:
1978 Comp., § 55-4A-504, enacted by Laws 1992, ch. 114, § 231.
OFFICIAL COMMENTS
UCC Official Comments by ALI & the NCCUSL. Reproduced with permission of the PEB for the UCC. All rights reserved.
1. Subsection (a) concerns priority among various obligations that are to be paid from the same account. A customer may have written checks on its account with the receiving bank and may have issued one or more payment orders payable from the same account. If the account balance is not sufficient to cover all of the checks and payment orders, some checks may be dishonored and some payment orders may not be accepted. Although there is no concept of wrongful dishonor of a payment order in Article 4A in the absence of an agreement to honor by the receiving bank, some rights and obligations may depend on the amount in the customer's account. Section 4A-209(b)(3) and Section 4A-210(b) [55-4A-209 and 55-4A-210 NMSA 1978, respectively]. Whether dishonor of a check is wrongful also may depend upon the balance in the customer's account. Under subsection (a), the bank is not required to consider the competing items and payment orders in any particular order. Rather it may charge the customer's account for the various items and orders in any order. Suppose there is $12,000 in the customer's account. If a check for $5,000 is presented for payment and the bank receives a $10,000 payment order from the customer, the bank could dishonor the check and accept the payment order. Dishonor of the check is not wrongful because the account balance was less than the amount of the check after the bank charged the account $10,000 on account of the payment order. Or, the bank could pay the check and not execute the payment order because the amount of the order is not covered by the balance in the account.
2. Subsection (b) follows Section 4-208(b) [55-4-208 NMSA 1978] in using the first-in-first-out rule for determining the order in which credits to an account are withdrawn.
ANNOTATIONS
Effective dates.
— Laws 1992, ch. 114, § 238 made the act effective July 1, 1992.
2023 New Mexico Statutes › Chapter 55 - Uniform Commercial Code › Article 4A - Funds Transfers › Part 5 - MISCELLANEOUS PROVISIONS › Section 55-4A-505 - Preclusion of objection to debit of customer's account.

If a receiving bank has received payment from its customer with respect to a payment order issued in the name of the customer as sender and accepted by the bank, and the customer received notification reasonably identifying the order, the customer is precluded from asserting that the bank is not entitled to retain the payment unless the customer notifies the bank of the customer's objection to the payment within one year after the notification was received by the customer.
History:
1978 Comp., § 55-4A-505, enacted by Laws 1992, ch. 114, § 232.
OFFICIAL COMMENTS
UCC Official Comments by ALI & the NCCUSL. Reproduced with permission of the PEB for the UCC. All rights reserved.
This section is in the nature of a statute of repose for objecting to debits made to the customer's account. A receiving bank that executes payment orders of a customer may have received payment from the customer by debiting the customer's account with respect to a payment order that the customer was not required to pay. For example, the payment order may not have been authorized or verified pursuant to Section 4A-202 [55-4A-202 NMSA 1978] or the funds transfer may not have been completed. In either case the receiving bank is obliged to refund the payment to the customer and this obligation to refund payment cannot be varied by agreement. Section 4A-204 and Section 4A-402 [55-4A-204 and 55-4A-402 NMSA 1978, respectively]. Refund may also be required if the receiving bank is not entitled to payment from the customer because the bank erroneously executed a payment order. Section 4A-303 [55-4A-303 NMSA 1978]. A similar analysis applies to that case. Section 4A-402(d) and (f) [55-4A-202 NMSA 1978] require refund and the obligation to refund may not be varied by agreement. Under 4A-505 [55-4A-505 NMSA 1978], however, the obligation to refund may not be asserted by the customer if the customer has not objected to the debiting of the account within one year after the customer received notification of the debit.
ANNOTATIONS
Effective dates.
— Laws 1992, ch. 114, § 238 made the act effective July 1, 1992.
2023 New Mexico Statutes › Chapter 55 - Uniform Commercial Code › Article 5 - Letters of Credit › Section 55-5-104 - Formal requirements. (Effective January 1, 2024.)

A letter of credit, confirmation, advice, transfer, amendment or cancellation may be issued in any form that is a signed record.
History:
1978 Comp., § 55-5-104, enacted by Laws 1997, ch. 75, § 6; 2023, ch. 142, § 34.
ANNOTATIONS
The 2023 amendment,
effective January 1, 2024, provided that a letter of credit, confirmation, advice, transfer, amendment or cancellation may be issued in any form that is a signed record, and removed a provisions related to authenticating certain instruments; and added "signed" preceding "record", and deleted "and is authenticated (i) by a signature or (ii) in accordance with the agreement of the parties or the standard practice referred to in Section 55-5-108(e) NMSA 1978".
2023 New Mexico Statutes › Chapter 55 - Uniform Commercial Code › Article 5 - Letters of Credit › Section 55-5-105 - Consideration.

Consideration is not required to issue, amend, transfer or cancel a letter of credit, advice or confirmation.
History:
1978 Comp., § 55-5-105, enacted by Laws 1997, ch. 75, § 7.
OFFICIAL COMMENTS
UCC Official Comments by ALI & the NCCUSL. Reproduced with permission of the PEB for the UCC. All rights reserved.
It is not to be expected that any issuer will issue its letter of credit without some form of remuneration. But it is not expected that the beneficiary will know what the issuer's remuneration was or whether in fact there was any identifiable remuneration in a given case. And it might be difficult for the beneficiary to prove the issuer's remuneration. This section dispenses with this proof and is consistent with the position of Lord Mansfield in
Pillans v. Van Mierop
, 97 Eng.Rep. 1035 (K.B. 1765) in making consideration irrelevant.
ANNOTATIONS
Repeals and reenactments.
— Laws 1997, ch. 75, § 7 repealed former 55-5-105 NMSA 1978, as enacted by Laws 1961, ch. 96, § 5-105, and enacted a new section, effective July 1, 1997. For provisions of former section,
see
the 1996 NMSA 1978 on
NMOneSource.com
.
Am. Jur. 2d, A.L.R. and C.J.S. references. —
50 Am. Jur. 2d Letters of Credit and Credit Cards § 16.
2023 New Mexico Statutes › Chapter 55 - Uniform Commercial Code › Article 5 - Letters of Credit › Section 55-5-115 - Statute of limitations.

An action to enforce a right or obligation arising under this article must be commenced within one year after the expiration date of the relevant letter of credit or one year after the cause of action accrues, whichever occurs later. A cause of action accrues when the breach occurs, regardless of the aggrieved party's lack of knowledge of the breach.
History:
1978 Comp., § 55-5-115, enacted by Laws 1997, ch. 75, § 17.
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 based upon Sections 4-111 and 2-725(2).
2. This section applies to all claims for which there are remedies under Section 5-111 and to other claims made under this article, such as claims for breach of warranty under Section 5-110. Because it covers all claims under Section 5-111, the statute of limitations applies not only to wrongful dishonor claims against the issuer but also to claims between the issuer and the applicant arising from the reimbursement agreement. These might be for reimbursement (issuer v. applicant) or for breach of the reimbursement contract by wrongful honor (applicant v. issuer).
3. The statute of limitations, like the rest of the statute, applies only to a letter of credit issued on or after the effective date and only to transactions, events, obligations, or duties arising out of or associated with such a letter. If a letter of credit was issued before the effective date and an obligation on that letter of credit was breached after the effective date, the complaining party could bring its suit within the time that would have been permitted prior to the adoption of Section 5-115 and would not be limited by the terms of Section 5-115.
ANNOTATIONS
Repeals and reenactments.
— Laws 1997, ch. 75, § 17 repealed former 55-5-115 NMSA 1978, as enacted by Laws 1961, ch. 96, § 5-115, relating to remedy for improper dishonor or anticipatory repudiation, and enacted a new section, effective July 1, 1997. For provisions of former section,
see
the 1996 NMSA 1978 on
NMOneSource.com
.
2023 New Mexico Statutes › Chapter 55 - Uniform Commercial Code › Article 5 - Letters of Credit › Section 55-5-118 - Security interest of issuer or nominated person.

(a) An issuer or nominated person has a security interest in a document presented under a letter of credit to the extent that the issuer or nominated person honors or gives value for the presentation.
(b) So long as and to the extent that an issuer or nominated person has not been reimbursed or has not otherwise recovered the value given with respect to a security interest in a document under Subsection (a) of this section, the security interest continues and is subject to Chapter 55, Article 9 NMSA 1978, but:
(1) a security agreement is not necessary to make the security interest enforceable under Paragraph (3) of Subsection (b) of Section 55-9-203 NMSA 1978;
(2) if the document is presented in a medium other than a written or other tangible medium, the security interest is perfected; and
(3) if the document is presented in a written or other tangible medium and is not a certificated security, chattel paper, a document of title, an instrument or a letter of credit, the security interest is perfected and has priority over a conflicting security interest in the document so long as the debtor does not have possession of the document.
History:
1978 Comp., § 55-5-118, enacted by Laws 2001, ch. 139, § 138.
ANNOTATIONS
Effective dates.
— Laws 2001, ch. 139, § 155 made Laws 2001, ch. 139, § 138 effective July 1, 2001.
2023 New Mexico Statutes › Chapter 55 - Uniform Commercial Code › Article 6 - Bulk Transfers (Repealed.) › Section 55-6-101 to 55-6-110 - Repealed.

ANNOTATIONS
Repeals.
— Laws 1992, ch. 114, § 237C repealed 55-6-101 to 55-6-110 NMSA 1978, as enacted by Laws 1961, ch. 96, §§ 6-101 to 6-110, relating to bulk transfers, effective July 1, 1992. For provisions of former sections,
see
the 1991 NMSA 1978 on
NMOneSource.com
.
2023 New Mexico Statutes › Chapter 55 - Uniform Commercial Code › Article 7 - Documents of Title › Part 1 - GENERAL › Section 55-7-101 - Short title.

This article shall be known and may be cited as Uniform Commercial Code - Documents of Title.
History:
1953 Comp., § 50A-7-101, enacted by Laws 1961, ch. 96, § 7-101.
OFFICIAL 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 7-101 [55-7-101 NMSA 1978].
Changes.
— Revised for style only.
This Article is a revision of the 1962 Official Text with Comments as amended since 1962. The 1962 Official Text was a consolidation and revision of the Uniform Warehouse Receipts Act and the Uniform Bills of Lading Act, and embraced the provisions of the Uniform Sales Act relating to negotiation of documents of title.
This Article does not contain the substantive criminal provisions found in the Uniform Warehouse Receipts and Bills of Lading Acts. These criminal provisions are inappropriate to a Commercial Code, and for the most part duplicate portions of the ordinary criminal law relating to frauds. This revision deletes the former Section 7-105 [55-7-105 NMSA 1978] that provided that courts could apply a rule from Parts 2 and 3 by analogy to a situation not explicitly covered in the provisions on warehouse receipts or bills of lading when it was appropriate. This is, of course, an unexceptional proposition and need not be stated explicitly in the statute. Thus former Section 7-105 has been deleted. Whether applying a rule by analogy to a situation is appropriate depends upon the facts of each case.
The Article does not attempt to define the tort liability of bailees, except to hold certain classes of bailees to a minimum standard of reasonable care. For important classes of bailees, liabilities in case of loss, damages or destruction, as well as other legal questions associated with particular documents of title, are governed by federal statutes, international treaties, and in some cases regulatory state laws, which supersede the provisions of this Article in case of inconsistency.
See
Section 7-103 [55-7-103 NMSA 1978].
ANNOTATIONS
Am. Jur. 2d, A.L.R. and C.J.S. references. —
15A Am. Jur. 2d Commercial Code § 1 et seq.; 78 Am. Jur. 2d Warehouses § 1 et seq.
Construction and effect of UCC, art. 7, dealing with warehouse receipts, bills of lading and other documents of title, 21 A.L.R.3d 1339.
13 C.J.S. Carriers §§ 446, 447; 80 C.J.S. Shipping §§ 111 to 114; 93 C.J.S. Warehousemen and Safe Depositaries § 1 et seq.
2023 New Mexico Statutes › Chapter 55 - Uniform Commercial Code › Article 7 - Documents of Title › Part 1 - GENERAL › Section 55-7-102 - Definitions and index of definitions. (Effective January 1, 2024.)

(a) In Chapter 55, Article 7 NMSA 1978, unless the context otherwise requires:
(1) "bailee" means a person that by a warehouse receipt, bill of lading or other document of title acknowledges possession of goods and contracts to deliver them;
(2) "carrier" means a person that issues a bill of lading;
(3) "consignee" means a person named in a bill of lading to which or to whose order the bill promises delivery;
(4) "consignor" means a person named in a bill of lading as the person from which the goods have been received for shipment;
(5) "delivery order" means a record that contains an order to deliver goods directed to a warehouse, carrier or other person that in the ordinary course of business issues warehouse receipts or bills of lading;
(6) Reserved;
(7) "goods" means all things that are treated as movable for the purposes of a contract for storage or transportation;
(8) "issuer" means a bailee that issues a document of title or, in the case of an unaccepted delivery order, the person that orders the possessor of goods to deliver. The term includes a person for which an agent or employee purports to act in issuing a document if the agent or employee has real or apparent authority to issue documents, even if the issuer did not receive any goods, the goods were misdescribed or in any other respect the agent or employee violated the issuer's instructions;
(9) "person entitled under the document" means the holder, in the case of a negotiable document of title, or the person to which delivery of the goods is to be made by the terms of, or pursuant to instructions in a record under, a nonnegotiable document of title;
(10) Reserved;
(11) Reserved;
(12) "shipper" means a person that enters into a contract of transportation with a carrier; and
(13) "warehouse" means a person engaged in the business of storing goods for hire.
(b) Definitions in other articles applying to this article and the sections in which they appear are:
(1) "contract for sale", Section 55-2-106 NMSA 1978;
(2) "lessee in the ordinary course of business", Section 55-2A-103 NMSA 1978; and
(3) "receipt" of goods, Section 55-2-103 NMSA 1978.
(c) In addition, Chapter 55, Article 1 NMSA 1978 contains general definitions and principles of construction and interpretation applicable throughout this article.
History:
1953 Comp., § 50A-7-102, enacted by Laws 1961, ch. 96, § 7-102; 1978 Comp., § 55-7-102; repealed and reenacted by Laws 2005, ch. 144, § 52; 2023, ch. 142, § 36.
ANNOTATIONS
The 2023 amendment,
effective January 1, 2024, removed the definition of "sign"; and in Paragraph (a)(11), deleted "'sign' means, with present intent to authenticate or adopt a record", deleted former Subparagraphs (a)(11)(A) and (a)(11)(B) and added "Reserved".
2023 New Mexico Statutes › Chapter 55 - Uniform Commercial Code › Article 7 - Documents of Title › Part 2 - WAREHOUSE RECEIPTS; SPECIAL PROVISIONS › Section 55-7-201 - Person that may issue a warehouse receipt; storage under bond.

(a) A warehouse receipt may be issued by any warehouse.
(b) If goods, including distilled spirits and agricultural commodities, are stored under a statute requiring a bond against withdrawal or a license for the issuance of receipts in the nature of warehouse receipts, a receipt issued for the goods is deemed to be a warehouse receipt even if issued by a person that is the owner of the goods and is not a warehouse.
History:
1953 Comp., § 50A-7-201, enacted by Laws 1961, ch. 96, § 7-201; 2005, ch. 144, § 57.
OFFICIAL 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 7-201 [55-7-201 NMSA 1978].
Changes.
— Update for style only.
It is not intended by re-enactment of subsection (a) to repeal any provisions of special licensing or other statutes regulating who may become a warehouse. Limitations on the transfer of the receipts and criminal sanctions for violation of such limitations are not impaired. Section 7-103 [55-7-103 NMSA 1978].
Compare
Section 7-401(4) [55-7-401 NMSA 1978] on the liability of the issuer in such cases. Subsection (b) covers receipts issued by the owner for whiskey or other goods stored in bonded warehouses under such statutes as 26 U.S.C. Chapter 51.
Cross References.
— Sections 7-103 [55-7-103 NMSA 1978], 7-401 [55-7-401 NMSA 1978].
"Warehouse receipt". Section 1-201 [55-1-201 NMSA 1978].
"Warehouse". Section 7-102 [55-7-102 NMSA 1978].
ANNOTATIONS
Repeals and reenactments.
— Laws 2005, ch. 144, § 57 repealed former 55-7-201 NMSA 1978 as enacted by Laws 1961, ch. 96, § 7-201, and enacted a new section, effective January 1, 2006.
Am. Jur. 2d, A.L.R. and C.J.S. references. —
15A Am. Jur. 2d Commercial Code § 48; 68A Am. Jur. 2d Secured Transactions § 109; 78 Am. Jur. 2d Warehouses §§ 42, 44.
Uniform Warehouse Receipts Act as affecting liens on the property represented by the receipts, 61 A.L.R. 949.
Relationship of bailor and bailee as between owner of goods in bonded warehouse and proprietor of warehouse, 77 A.L.R. 1502.
Legal effect of transaction by which grain or other commodity is received for storage by one who has not complied with statutory conditions necessary to become public warehouseman, 108 A.L.R. 928.
Statutory warehousing as determined by character of property stored, 132 A.L.R. 532.
Validity of field warehousing, 133 A.L.R. 209.
Estoppel of owner who permits another to have possession of certificates or other evidences of title, of personal property endorsed in blank or otherwise showing ownership in possessor, to deny latter's authority to deal with, the property, 151 A.L.R. 690.
Warehouseman's liability for loss occasioned by failure to issue a proper receipt to depositor, 168 A.L.R. 945.
93 C.J.S. Warehousemen and Safe Depositaries § 17.
2023 New Mexico Statutes › Chapter 55 - Uniform Commercial Code › Article 7 - Documents of Title › Part 2 - WAREHOUSE RECEIPTS; SPECIAL PROVISIONS › Section 55-7-203 - Liability for nonreceipt or misdescription.

A party to or purchaser for value in good faith of a document of title, other than a bill of lading, that relies upon the description of the goods in the document may recover from the issuer damages caused by the nonreceipt or misdescription of the goods, except to the extent that:
(1) the document conspicuously indicates that the issuer does not know whether all or part of the goods in fact were received or conform to the description, such as a case in which the description is in terms of marks or labels or kind, quantity or condition or the receipt or description is qualified by "contents, condition, and quality unknown", "said to contain" or words of similar import, if the indication is true; or
(2) the party or purchaser otherwise has notice of the nonreceipt or misdescription.
History:
1953 Comp., § 50A-7-203, enacted by Laws 1961, ch. 96, § 7-203; 2005, ch. 144, § 59.
OFFICIAL 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 7-203 [55-7-203 NMSA 1978].
Changes.
— Changes to this section are for style only.
This section is a simplified restatement of existing law as to the method by which a bailee may avoid responsibility for the accuracy of descriptions which are made by or in reliance upon information furnished by the depositor. The issuer is liable on documents issued by an agent, contrary to instructions of its principal, without receiving goods. No disclaimer of the latter liability is permitted.
Cross Reference.
— Section 7-301 [55-7-301 NMSA 1978].
"Conspicuous". Section 1-201 [55-1-201 NMSA 1978].
"Document of title". Section 1-201.
"Goods". Section 7-102 [55-7-102 NMSA 1978].
"Good Faith". Section 1-201.
"Issuer". Section 7-102.
"Notice". Section 1-202 [55-1-202 NMSA 1978].
"Party". Section 1-201.
"Purchaser". Section 1-201.
"Receipt of goods". Section 2-103 [55-2-103 NMSA 1978].
"Value". Section 1-204 [55-1-204 NMSA 1978].
ANNOTATIONS
Repeals and reenactments.
— Laws 2005, ch. 144, § 59, effective January 1, 2006, repealed former 55-7-203 NMSA 1978 as enacted by Laws 1961, ch. 96, § 7-203, and enacted a new section. Except for style changes, there is no difference between the former law and the new law. 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, 52; 78 Am. Jur. 2d Warehouses § 48.
Right of purchaser of warehouse receipt against warehouseman, 38 A.L.R. 1205.
Provision in warehouseman's receipt limiting liability as applicable where warehouseman converts property, 99 A.L.R. 266.
2023 New Mexico Statutes › Chapter 55 - Uniform Commercial Code › Article 7 - Documents of Title › Part 2 - WAREHOUSE RECEIPTS; SPECIAL PROVISIONS › Section 55-7-207 - Goods must be kept separate; fungible goods.

(a) Unless the warehouse receipt provides otherwise, a warehouse shall keep separate the goods covered by each receipt so as to permit at all times identification and delivery of those goods. However, different lots of fungible goods may be commingled.
(b) If different lots of fungible goods are commingled, the goods are owned in common by the persons entitled thereto and the warehouse is severally liable to each owner for that owner's share. If, because of overissue, a mass of fungible goods is insufficient to meet all the receipts the warehouse has issued against it, the persons entitled include all holders to which overissued receipts have been duly negotiated.
History:
1953 Comp., § 50A-7-207, enacted by Laws 1961, ch. 96, § 7-207; 2005, ch. 144, § 63.
OFFICIAL 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 7-207 [55-7-207 NMSA 1978].
Changes.
— Changes for style only.
No change of substance is made from former Section 7-207 [55-7-207 NMSA 1978]. Holders to whom overissued receipts have been duly negotiated shall share in a mass of fungible goods. Where individual ownership interests are merged into claims on a common fund, as is necessarily the case with fungible goods, there is no policy reason for discriminating between successive purchasers of similar claims.
"Delivery". Section 1-201 [55-1-201 NMSA 1978].
"Duly negotiate". Section 7-501 [55-7-501 NMSA 1978].
"Fungible goods". Section 1-201.
"Goods". Section 7-102 [55-7-102 NMSA 1978].
"Holder". Section 1-201.
"Person". Section 1-201.
"Warehouse receipt". Section 1-201.
"Warehouse". Section 7-102.
ANNOTATIONS
Repeals and reenactments.
— Laws 2005, ch. 144, § 63, effective January 1, 2006, repealed former 55-7-207 NMSA 1978 as enacted by Laws 1961, ch. 96, § 7-207, 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 § 44; 78 Am. Jur. 2d Warehouses §§ 39, 45, 179, 181, 228.
Deposit of grain without obligation to return identical grain as a bailment or a sale, 54 A.L.R. 1166.
"Warehouse purchase receipt" as bailment or contract of sale, 91 A.L.R. 906.
Statutory warehousing as determined by character of property stored, 132 A.L.R. 532.
93 C.J.S. Warehousemen and Safe Depositaries §§ 13, 14.
2023 New Mexico Statutes › Chapter 55 - Uniform Commercial Code › Article 7 - Documents of Title › Part 2 - WAREHOUSE RECEIPTS; SPECIAL PROVISIONS › Section 55-7-208 - Altered warehouse receipts.

If a blank in a negotiable tangible warehouse receipt has been filled in without authority, a good-faith purchaser for value and without notice of the lack of authority may treat the insertion as authorized. Any other unauthorized alteration leaves any tangible or electronic warehouse receipt enforceable against the issuer according to its original tenor.
History:
1953 Comp., § 50A-7-208, enacted by Laws 1961, ch. 96, § 7-208; 2005, ch. 144, § 64.
OFFICIAL 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 7-208 [55-7-208 NMSA 1978].
Changes.
— To accommodate electronic documents of title.
1. The execution of tangible warehouse receipts in blank is a dangerous practice. As between the issuer and an innocent purchaser the risks should clearly fall on the former. The purchaser must have purchased the tangible negotiable warehouse receipt in good faith and for value to be protected under the rule of the first sentence which is a limited exception to the general rule in the second sentence. Electronic document of title systems should have protection against unauthorized access and unauthorized changes.
See
7-106 [55-7-106 NMSA 1978]. Thus the protection for good faith purchasers found in the first sentence is not necessary in the context of electronic documents.
2. Under the second sentence of this section, an unauthorized alteration whether made with or without fraudulent intent does not relieve the issuer of its liability on the warehouse receipt as originally executed. The unauthorized alteration itself is of course ineffective against the warehouse. The rule stated in the second sentence applies to both tangible and electronic warehouse receipts.
"Good faith". Section 1-201 [55-1-201 NMSA 1978].
"Issuer". Section 7-102 [55-7-102 NMSA 1978].
"Notice". Section 1-202 [55-1-202 NMSA 1978].
"Purchaser". Section 1-201.
"Value". Section 1-204 [55-1-204 NMSA 1978].
"Warehouse receipt". Section 1-201.
ANNOTATIONS
Repeals and reenactments.
— Laws 2005, ch. 144, § 64, effective January 1, 2006, repealed former 55-7-208 NMSA 1978 as enacted by Laws 1961, ch. 96, § 7-208, 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 §§ 45, 62; 78 Am. Jur. 2d Warehouses § 50.
Rights of purchaser of forged or altered receipt as against warehouseman, 38 A.L.R. 1206.
3A C.J.S. Alteration of Instruments § 1; 93 C.J.S. Warehousemen and Safe Depositaries § 27.
2023 New Mexico Statutes › Chapter 55 - Uniform Commercial Code › Article 7 - Documents of Title › Part 3 - BILLS OF LADING; SPECIAL PROVISIONS › Section 55-7-306 - Altered bills of lading.

An unauthorized alteration or filling in of a blank in a bill of lading leaves the bill enforceable according to its original tenor.
History:
1953 Comp., § 50A-7-306, enacted by Laws 1961, ch. 96, § 7-306; 2005, ch. 144, § 72.
OFFICIAL 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 7-306 [55-7-306 NMSA 1978].
Changes.
— None
An unauthorized alteration or filling in of a blank, whether made with or without fraudulent intent, does not relieve the issuer of its liability on the document as originally executed. This section applies to both tangible and electronic bills of lading, applying the same rule to both types of bills of lading. The control concept of Section 7-106 [55-7-106 NMSA 1978] requires that any changes to the electronic document of title be readily identifiable as authorized or unauthorized. Section 7-306 [55-7-306 NMSA 1978] should be compared to Section 7-208 [55-7-208 NMSA 1978] where a different rule applies to the unauthorized filling in of a blank for tangible warehouse receipts.
Cross References.
— Sections 7-106 [55-7-106 NMSA 1978] and 7-208 [55-7-208 NMSA 1978].
"Bill of lading". Section 1-201 [55-1-201 NMSA 1978].
"Issuer". Section 7-102 [55-7-102 NMSA 1978].
ANNOTATIONS
Repeals and reenactments.
— Laws 2005, ch. 144, § 72, effective January 1, 2006, repealed former 55-7-306 NMSA 1978 as enacted by Laws 1961, ch. 96, § 7-306, 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. —
13 Am. Jur. 2d Carriers § 329; 15A Am. Jur. 2d Commercial Code §§ 45, 62.
3A C.J.S. Alteration of Instruments § 6.
2023 New Mexico Statutes › Chapter 55 - Uniform Commercial Code › Article 7 - Documents of Title › Part 4 - WAREHOUSE RECEIPTS AND BILLS OF LADING; GENERAL OBLIGATIONS › Section 55-7-404 - No liability for good-faith delivery pursuant to document of title.

A bailee that in good faith has received goods and delivered or otherwise disposed of the goods according to the terms of a document of title or pursuant to Chapter 55, Article 7 NMSA 1978 is not liable for the goods even if:
(1) the person from which the bailee received the goods did not have authority to procure the document or to dispose of the goods; or
(2) the person to which the bailee delivered the goods did not have authority to receive the goods.
History:
1953 Comp., § 50A-7-404, enacted by Laws 1961, ch. 96, § 7-404; 2005, ch. 144, § 79.
OFFICIAL 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 7-404 [55-7-404 NMSA 1978].
Changes.
— Changes reflect the definition of good faith in Section 1-201 [55-1-201 NMSA 1978] and for style.
This section uses the test of good faith, as defined in Section 1-201 [55-1-201 NMSA 1978], to continue the policy of former Section 7-404 [55-7-404 NMSA 1978]. Good faith now means "honesty in fact and the observance of reasonable commercial standards of fair dealing." The section states explicitly that the common law rule of "innocent conversion" by unauthorized "intermeddling" with another's property is inapplicable to the operations of commercial carriers and warehousemen that in good faith perform obligations that they have assumed and that generally they are under a legal compulsion to assume. The section applies to delivery to a fraudulent holder of a valid document as well as to delivery to the holder of an invalid document. Of course, in appropriate circumstances, a bailee may use interpleader or other dispute resolution process. See Section 7-603 [55-7-603 NMSA 1978].
Cross References.
— Section 7-603 [55-7-603 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.
"Good faith". Section 1-201.
"Goods". Section 7-102.
"Person". Section 1-201.
"Receipt of goods". Section 2-103 [55-2-103 NMSA 1978].
"Term". Section 1-201.
ANNOTATIONS
Repeals and reenactments.
— Laws 2005, ch. 144, § 79, effective January 1, 2006, repealed former 55-7-404 NMSA 1978 as enacted by Laws 1961, ch. 96, § 7-404, 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.
— 13 Am. Jur. 2d Carriers § 474; 78 Am. Jur. 2d Warehouses §§ 201, 204.
Lack of endorsement or irregular endorsement of warehouse receipt or bill of lading as affecting privilege of goods, 18 A.L.R. 588.
Effectiveness, as pledge, of transfer of nonnegotiable instruments which represent obligations, 53 A.L.R.2d 1396.
93 C.J.S. Warehousemen and Safe Depositaries § 27.
2023 New Mexico Statutes › Chapter 55 - Uniform Commercial Code › Article 7 - Documents of Title › Part 5 - WAREHOUSE RECEIPTS AND BILLS OF LADING; NEGOTIATION AND TRANSFER › Section 55-7-505 - Indorser not guarantor for other parties.

The indorsement of a tangible document of title issued by a bailee does not make the indorser liable for any default by the bailee or previous indorsers.
History:
1953 Comp., § 50A-7-505, enacted by Laws 1961, ch. 96, § 7-505; 2005, ch. 144, § 84.
OFFICIAL 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 7-505 [55-7-505 NMSA 1978].
Changes.
— Limited to tangible documents of title.
This section is limited to tangible documents of title as the concept of indorsement is irrelevant to electronic documents of title. Electronic documents of title will be transferred by delivery of control. Section 7-106 [55-7-106 NMSA 1978]. The indorsement of a tangible document of title is generally understood to be directed towards perfecting the transferee's rights rather than towards assuming additional obligations. The language of the present section, however, does not preclude the one case in which an indorsement given for value guarantees future action, namely, that in which the bailee has not yet become liable upon the document at the time of the indorsement. Under such circumstances the indorser, of course, engages that appropriate honor of the document by the bailee will occur.
See
Section 7-502(a)(4) [55-7-502(a)(4) NMSA 1978] as to negotiable delivery orders. However, even in such a case, once the bailee attorns to the transferee, the indorser's obligation has been fulfilled and the policy of this section excludes any continuing obligation on the part of the indorser for the bailee's ultimate actual performance.
Cross References.
— Sections 7-106 [ 55-7-106 NMSA 1978] and 7-502 [55-7-502 NMSA 1978].
"Bailee". Section 7-102 [55-7-102 NMSA 1978].
"Document of title". Section 1-201 [55-1-201 NMSA 1978].
"Party". Section 1-201.
ANNOTATIONS
Repeals and reenactments.
— Laws 2005, ch. 144, § 84, effective January 1, 2006, repealed former 55-7-505 NMSA 1978 as enacted by Laws 1961, ch. 96, § 7-505, 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 § 66; 78 Am. Jur. 2d Warehouses § 71.
Lack of endorsement or irregular endorsement of warehouse receipt or bill of lading as affecting pledge of goods, 18 A.L.R. 588.
93 C.J.S. Warehousemen and Safe Depositaries § 26.
2023 New Mexico Statutes › Chapter 55 - Uniform Commercial Code › Article 7 - Documents of Title › Part 5 - WAREHOUSE RECEIPTS AND BILLS OF LADING; NEGOTIATION AND TRANSFER › Section 55-7-506 - Delivery without indorsement; right to compel indorsement.

The transferee of a negotiable tangible document of title has a specifically enforceable right to have its transferor supply any necessary indorsement, but the transfer becomes a negotiation only as of the time the indorsement is supplied.
History:
1953 Comp., § 50A-7-506, enacted by Laws 1961, ch. 96, § 7-506; 2005, ch. 144, § 85.
OFFICIAL 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 7-506 [55-7-506 NMSA 1978].
Changes.
— Limited to tangible documents of title.
1. This section is limited to tangible documents of title as the concept of indorsement is irrelevant to electronic documents of title. Electronic documents of title will be transferred by delivery of control. Section 7-106 [55-7-106 NMSA 1978]. From a commercial point of view the intention to transfer a tangible negotiable document of title which requires an indorsement for its transfer, is incompatible with an intention to withhold such indorsement and so defeat the effective use of the document. Further, the preceding section and the Comment thereto make it clear that an indorsement generally imposes no responsibility on the indorser.
2. Although this section provides that delivery of a tangible document of title without the necessary indorsement is effective as a transfer, the transferee, of course, has not regularized its position until such indorsement is supplied. Until this is done the transferee cannot claim rights under due negotiation within the requirements of this Article (Section 7-501(a)(5) [55-7-501(a)(5) NMSA 1978]) on "due negotiation". Similarly, despite the transfer to the transferee of the transferor's title, the transferee cannot demand the goods from the bailee until the negotiation has been completed and the document is in proper form for surrender.
See
Section 7-403(c) [55-7-403(c) NMSA 1978].
Point 1: Sections 7-106 [55-7-106 NMSA 1978] and 7-505 [55-7-505 NMSA 1978].
Point 2: Sections 7-501(a)(5) [55-7-501(a)(5) NMSA 1978] and 7-403(c) [55-7-403(c) NMSA 1978].
"Document of title". Section 1-201 [55-1-201 NMSA 1978].
"Rights". Section 1-201.
ANNOTATIONS
Repeals and reenactments.
— Laws 2005, ch. 144, § 85, effective January 1, 2006, repealed former 55-7-506 NMSA 1978 as enacted by Laws 1961, ch. 96, § 7-506, 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.
— 13 Am. Jur. 2d Carriers § 305; 15A Am. Jur. 2d Commercial Code § 61; 78 Am. Jur. 2d Warehouses § 65.
Lack of endorsement or irregular endorsement of warehouse receipt as affecting pledge of goods, 18 A.L.R. 588.
Rights of purchaser of warehouse receipt against warehouseman, 38 A.L.R. 1205.
6A C.J.S. Assignments § 53; 80 C.J.S. Shipping § 114; 93 C.J.S. Warehousemen and Safe Depositaries § 27.