2023 New Mexico Statutes › Chapter 55 - Uniform Commercial Code › Article 9 - Secured Transactions › Part 2 - EFFECTIVENESS OF SECURITY AGREEMENT; ATTACHMENT OF SECURITY INTEREST; RIGHTS OF PARTIES TO SECURITY AGREEMENT › Subpart 2 - RIGHTS AND DUTIES › Section 55-9-208 - Additional duties of secured party having control of collateral. (Effective January 1, 2024.)

(a) This section applies to cases in which there is no outstanding secured obligation and the secured party is not committed to make advances, incur obligations or otherwise give value.
(b) Within ten days after receiving a signed demand by the debtor:
(1) a secured party having control of a deposit account under Paragraph (2) of Subsection (a) of Section 55-9-104 NMSA 1978 shall send to the bank with which the deposit account is maintained a signed document that releases the bank from any further obligation to comply with instructions originated by the secured party;
(2) a secured party having control of a deposit account under Paragraph (3) of Subsection (a) of Section 55-9-104 NMSA 1978 shall:
(A) pay the debtor the balance on deposit in the deposit account; or
(B) transfer the balance on deposit into a deposit account in the debtor's name;
(3) a secured party, other than a buyer, having control under Section 55-9-105 NMSA 1978 of an authoritative electronic copy of a record evidencing chattel paper shall transfer control of the electronic copy to the debtor or a person designated by the debtor;
(4) a secured party having control of investment property under Paragraph (2) of Subsection (d) of Section 55-8-106 NMSA 1978 or Subsection (b) of Section 55-9-106 NMSA 1978 shall send to the securities intermediary or commodity intermediary with which the security entitlement or commodity contract is maintained a signed record that releases the securities intermediary or commodity intermediary from any further obligation to comply with entitlement orders or directions originated by the secured party;
(5) a secured party having control of a letter-of-credit right under Section 55-9-107 NMSA 1978 shall send to each person having an unfulfilled obligation to pay or deliver proceeds of the letter of credit to the secured party a signed release from any further obligation to pay or deliver proceeds of the letter of credit to the secured party;
(6) a secured party having control under Section 55-7-106 NMSA 1978 of an authoritative electronic copy of an electronic document of title shall transfer control of the electronic copy to the debtor or a person designated by the debtor;
(7) a secured party having control under Section 55-9-105A NMSA 1978 of electronic money shall transfer control of the electronic money to the debtor or a person designated by the debtor; and
(8) a secured party having control under Section 55-12-105 NMSA 1978 of a controllable electronic record, other than a buyer of a controllable account or controllable payment intangible evidenced by the controllable electronic record, shall transfer control of the controllable electronic record to the debtor or a person designated by the debtor.
History:
1978 Comp., § 55-9-208, enacted by Laws 2001, ch. 139, § 18; 2005, ch. 144, § 97; 2023, ch. 142, § 53.
ANNOTATIONS
The 2023 amendment,
effective January 1, 2024, revised certain provisions related to the duties of secured parties having control of collateral, and clarified certain language in the section; in Subsection (b), in the introductory clause, after "receiving", deleted "an authenticated" and added "a signed"; in Paragraph (b)(1), after "maintained", deleted "an authenticated statement" and added "a signed document"; deleted former Paragraph (b)(3) and added a new Paragraph (b)(3); in Paragraph (b)(4), after "maintained", deleted "an authenticated" and added "a signed"; in Paragraph (b)(5), after "secured party", deleted "an authenticated" and added "a signed"; and deleted former Paragraph (b)(6) and added new Paragraphs (b)(6) through (b)8).