reglab/statecodes huggingface dataset:
2023 New Mexico Statutes › Chapter 56 - Commercial Instruments and Transactions › Article 9 - Transfers to Prefer Creditors - Voluntary Assignments › Section 56-9-41 - [Time for payment of claims; notice; refusal to pay; penalty; dismissal.]

As soon as practicable and not exceeding thirty days after a time for allowance of demands had under this chapter, provided sufficient money shall have then come into his hands, the assignee or assignees shall pay upon the demands allowed, according to their right, as much as the means on hand will permit after reserving enough for proper fees, costs, expenses and demands, including expenses of litigation then pending, and as often thereafter as a dividend of five per centum can be paid upon the demands allowed as aforesaid, the assignee or assignees shall give notice thereof for publication for one week in the same newspaper in which was published the notice for allowance of demands, or in such other newspaper as the court or judge thereof may direct; and if such assignee or assignees shall neglect or refuse to make payment out of such trust fund, as in this section required, for more than three days after the same have become due and have been demanded by the person entitled thereto, his agent or attorney, or if he or they shall in any way neglect or refuse to comply with the provisions of this section, he or they shall for every such neglect or refusal, forfeit and pay to the person or persons aggrieved, five per centum per month interest on such sum as such person or persons were entitled to at the time of such demand, to be recovered by motion in the court having jurisdiction of said assignment; and any judgment rendered by said court on the hearing of said motion shall be against said assignee or assignees and his or their securities on their trust provided for in this chapter, and such assignee or assignees shall in addition to such forfeiture, be subject to be dismissed from his or their trust by said court for such neglect and refusal and on motion and citation for that purpose.
History:
Laws 1889, ch. 71, § 32; C.L. 1897, § 2858; Code 1915, § 314; C.S. 1929, § 7-141; 1941 Comp., § 23-141; 1953 Comp., § 27-1-41.
ANNOTATIONS
Bracketed material.
— The bracketed material was inserted by the compiler and is not part of the law.
Compiler's notes.
— Laws 1889, ch. 67, § 9, presently compiled as 56-9-9 NMSA 1978, provides the procedure should an assignee not settle within 12 months.
See
the compiler's notes to 56-9-8 NMSA 1978.
The words "in this chapter," the first time they appear, were inserted by the 1915 Code compilers; the words "this chapter," the second time they appear, were substituted for "this act." Presumably, "this chapter" refers to 56-9-1 to 56-9-55 NMSA 1978, whereas "this act" refers only to Laws 1889, ch. 67, §§ 1 to 9, presently compiled as 56-9-1 to 56-9-9 NMSA 1978.
Cross references.
— For publication of notice,
see
Chaper 14, Article 11 NMSA 1978.
Am. Jur. 2d, A.L.R. and C.J.S. references. —
Lessor's right to compensation out of estate for use of premises by assignee for creditors not adopting lease, 43 A.L.R. 740.
6A C.J.S. Assignments for Benefit of Creditors §§ 74, 98, 145.
2023 New Mexico Statutes › Chapter 56 - Commercial Instruments and Transactions › Article 9 - Transfers to Prefer Creditors - Voluntary Assignments › Section 56-9-42 - [Assignee to give information as to condition of estate.]

Every assignee, upon the reasonable request of any person entitled to any demand allowed, or of his agent, shall exhibit to such person or agent the condition of the assets of the assignment and give him all reasonable information concerning the same.
History:
Laws 1889, ch. 71, § 33; C.L. 1897, § 2859; Code 1915, § 315; C.S. 1929, § 7-142; 1941 Comp., § 23-142; 1953 Comp., § 27-1-42.
ANNOTATIONS
Bracketed material.
— The bracketed material was inserted by the compiler and is not part of the law.
2023 New Mexico Statutes › Chapter 56 - Commercial Instruments and Transactions › Article 9 - Transfers to Prefer Creditors - Voluntary Assignments › Section 56-9-43 - [Petition for relief against assignee; citation; procedure.]

Upon petition in behalf of any such person to the district court, or judge thereof in vacation, showing good cause therefor, verified by affidavit, such court or judge shall cause any assignee to be cited to appear before the court or judge at such time as may be designated, to answer the allegation of such petition and to do and abide such order as shall be made by such court or judge in the premises, and for the purpose of preventing multiplicity of petitions or other proceedings, two or more may join in seeking the relief demanded by each, verifying their respective causes of complaint: provided, the relief sought by each are not antagonistic to each other, and upon the hearing the court or judge shall make such order as shall be deemed fit and lawful in the premises for enforcing the provisions of this chapter.
History:
Laws 1889, ch. 71, § 34; C.L. 1897, § 2860; Code 1915, § 316; C.S. 1929, § 7-143; 1941 Comp., § 23-143; 1953 Comp., § 27-1-43.
ANNOTATIONS
Bracketed material.
— The bracketed material was inserted by the compiler and is not part of the law.
Compiler's notes.
— The words "in this chapter," the first time they appear, were inserted by the 1915 Code compilers; the words "this chapter," the second time they appear, were substituted for "this act." Presumably, "this chapter" refers to 56-9-1 to 56-9-55 NMSA 1978, whereas "this act" refers only to Laws 1889, ch. 67, §§ 1 to 9, presently compiled as 56-9-1 to 56-9-9 NMSA 1978.
Cross references.
— For joinder of parties,
see
Rule 1-020 NMRA.
Am. Jur. 2d, A.L.R. and C.J.S. references. —
6 Am. Jur. 2d Assignments for Benefit of Creditors § 104.
6A C.J.S. Assignments for Benefit of Creditors § 83.
2023 New Mexico Statutes › Chapter 56 - Commercial Instruments and Transactions › Article 9 - Transfers to Prefer Creditors - Voluntary Assignments › Section 56-9-44 - [Exempt property not included in assignment.]

All property, both real and personal, exempt from execution under the laws of this state shall not be conveyed by the deed of assignment, and if enumerated therein shall not pass to the assignee, but shall be reserved for the benefit of the assignor, or his family, to be set off and appraised by the appraiser mentioned in the first part of this chapter.
History:
Laws 1889, ch. 71, § 35; C.L. 1897, § 2861; Code 1915, § 317; C.S. 1929, § 7-144; 1941 Comp., § 23-144; 1953 Comp., § 27-1-44.
ANNOTATIONS
Bracketed material.
— The bracketed material was inserted by the compiler and is not part of the law.
Compiler's notes.
— The words "in this chapter," the first time they appear, were inserted by the 1915 Code compilers; the words "this chapter," the second time they appear, were substituted for "this act." Presumably, "this chapter" refers to 56-9-1 to 56-9-55 NMSA 1978, whereas "this act" refers only to Laws 1889, ch. 67, §§ 1 to 9, presently compiled as 56-9-1 to 56-9-9 NMSA 1978.
Cross references.
— For appraisal,
see
56-9-13 to 56-9-17 NMSA 1978.
For exemptions from execution,
see
42-10-1 to 42-10-13 NMSA 1978.
Individual exemptions unavailable to members of insolvent partnership.
— Individual partners of an insolvent partnership are not entitled to exemption as head of a family out of the assets.
In re Spitz Bros.
, 1896-NMSC-025, 8 N.M. 622, 45 P. 1122.
Am. Jur. 2d, A.L.R. and C.J.S. references. —
6 Am. Jur. 2d Assignments for Benefit of Creditors §§ 58, 129.
Individual partner's right on assignment by firm for benefit of creditors to claim exemption in partnership property, 4 A.L.R. 308.
6A C.J.S. Assignments for Benefit of Creditors § 167.
2023 New Mexico Statutes › Chapter 56 - Commercial Instruments and Transactions › Article 9 - Transfers to Prefer Creditors - Voluntary Assignments › Section 56-9-45 - [Prior liens not affected.]

That nothing herein contained shall be so construed as to deprive any person of the benefit of any lien that may have attached to any of the assignor's property, either at law or in equity, prior to assignment.
History:
Laws 1889, ch. 71, § 36; C.L. 1897, § 2862; Code 1915, § 318; C.S. 1929, § 7-145; 1941 Comp., § 23-145; 1953 Comp., § 27-1-45.
ANNOTATIONS
Bracketed material.
— The bracketed material was inserted by the compiler and is not part of the law.
Compiler's notes.
— The words "herein contained" possibly refer only to this section, but they may refer to Laws 1889, ch. 71, §§ 1 to 44, presently compiled as 56-9-10 to 56-9-53 NMSA 1978.
Am. Jur. 2d, A.L.R. and C.J.S. references. —
6 Am. Jur. 2d Assignments for Benefit of Creditors §§ 49 to 85, 115, 119, 127, 131.
Landlord's lien on goods in hands of assignee for creditors of tenant, 9 A.L.R. 322, 96 A.L.R. 249.
Waiver of or estoppel to assert lien by filing claim with or receiving dividend from assignee for creditors, 55 A.L.R. 993.
Right of assignee for benefit of creditors of lien claimant to file mechanic's lien, 83 A.L.R. 20.
6A C.J.S. Assignments for Benefit of Creditors §§ 149 to 156.
2023 New Mexico Statutes › Chapter 56 - Commercial Instruments and Transactions › Article 9 - Transfers to Prefer Creditors - Voluntary Assignments › Section 56-9-47 - [Preferences inure to benefit of all creditors alike.]

Should any preference be made in favor of any creditor, other than in this chapter provided, such preference shall inure to the benefit of all creditors alike.
History:
Laws 1889, ch. 71, § 38; C.L. 1897, § 2864; Code 1915, § 320; C.S. 1929, § 7-147; 1941 Comp., § 23-147; 1953 Comp., § 27-1-47.
ANNOTATIONS
Bracketed material.
— The bracketed material was inserted by the compiler and is not part of the law.
Compiler's notes.
— The words "in this chapter," the first time they appear, were inserted by the 1915 Code compilers; the words "this chapter," the second time they appear, were substituted for "this act." Presumably, "this chapter" refers to 56-9-1 to 56-9-55 NMSA 1978, whereas "this act" refers only to Laws 1889, ch. 67, §§ 1 to 9, presently compiled as 56-9-1 to 56-9-9 NMSA 1978.
Am. Jur. 2d, A.L.R. and C.J.S. references. —
6 Am. Jur. 2d Assignments for Benefit of Creditors §§ 69 to 74, 115 to 119.
6A C.J.S. Assignments for Benefit of Creditors §§ 9, 44, 45, 128.
2023 New Mexico Statutes › Chapter 56 - Commercial Instruments and Transactions › Article 9 - Transfers to Prefer Creditors - Voluntary Assignments › Section 56-9-48 - [Discharge; application by assignee; notice; contents of petition.]

When any assignee becomes satisfied that it is no longer advantageous to the creditors of his assignor to keep the assignment open, he may apply to the district court for a discharge from his trust, upon a notice of his intention to make such application, stating the time thereof, which notice shall be published in the newspaper aforesaid, for at least four weeks next before such time, at which time he may file his petition in said court for such discharge; which petition, verified by his affidavit, shall set forth the disposition made of the assets of the assignment to him; what portion of them remains on hand, and their condition; the amount realized from the assets; the particular disposition of such amount; the demands allowed particularly, with their respective amounts, and owners' names, and the sums paid on each, with an offer to deliver into the charge of the court what remains of the assets, and the evidence thereof, and accompanied by all vouchers therewith connected.
History:
Laws 1889, ch. 71, § 39; C.L. 1897, § 2865; Code 1915, § 321; C.S. 1929, § 7-148; 1941 Comp., § 23-148; 1953 Comp., § 27-1-48.
ANNOTATIONS
Bracketed material.
— The bracketed material was inserted by the compiler and is not part of the law.
Cross references.
— For publication of notice,
see
14-11-1 to 14-11-3, 14-11-13 NMSA 1978.
Am. Jur. 2d, A.L.R. and C.J.S. references. —
6 Am. Jur. 2d Assignments for Benefit of Creditors §§ 50, 51, 53, 54, 66, 88.
Debtor's transfer of assets to representative of creditors as effectuating release of unsecured claims, in absence of express agreement to that effect, 8 A.L.R.3d 903.
6A C.J.S. Assignments for Benefit of Creditors §§ 112 to 126, 172.
2023 New Mexico Statutes › Chapter 56 - Commercial Instruments and Transactions › Article 9 - Transfers to Prefer Creditors - Voluntary Assignments › Section 56-9-49 - [Hearing and determination of application for discharge.]

If no person interested shall, within one week after filing such petition, file written objections to such discharge, accompanied by specific reasons, the court may refer the application to some competent and reliable person to examine the merits of the application and report to the court, with all convenient speed thereon; and, upon the filing of such report, the court shall make such further order in the premises as it shall adjudge right, or the court or judge thereof may hear and determine such application without reference, and may discharge said assignee from all further duty or obligation under the assignment; and thereupon, shall order such assignee to deliver into the charge and custody of the court such portion of the assets and evidences thereof as remain in his hands, where they shall be kept with all papers connected with such assignment, subject to the future control and disposition of the court.
History:
Laws 1889, ch. 71, § 40; C.L. 1897, § 2866; Code 1915, § 322; C.S. 1929, § 7-149; 1941 Comp., § 23-149; 1953 Comp., § 27-1-49.
ANNOTATIONS
Bracketed material.
— The bracketed material was inserted by the compiler and is not part of the law.
Cross references.
— For masters,
see
Rule 1-053 NMRA.
2023 New Mexico Statutes › Chapter 56 - Commercial Instruments and Transactions › Article 9 - Transfers to Prefer Creditors - Voluntary Assignments › Section 56-9-50 - [Appeals from final judgment.]

Appeals may be taken from the final judgment of the court, in the same manner as now provided by law, for appeals or writs of error in ordinary cases.
History:
Laws 1889, ch. 71, § 41; C.L. 1897, § 2867; Code 1915, § 323; C.S. 1929, § 7-150; 1941 Comp., § 23-150; 1953 Comp., § 27-1-50.
ANNOTATIONS
Bracketed material.
— The bracketed material was inserted by the compiler and is not part of the law.
Am. Jur. 2d, A.L.R. and C.J.S. references. —
6 Am. Jur. 2d Assignments for Benefit of Creditors § 112.
2023 New Mexico Statutes › Chapter 56 - Commercial Instruments and Transactions › Article 9 - Transfers to Prefer Creditors - Voluntary Assignments › Section 56-9-51 - [Bad or doubtful debts; sale or compromise; release of rights; report; notice; objections.]

Whenever it may appear to the best interest of the estate assigned, the court, or judge thereof in vacation may make an order directing the assignee to sell, compound or compromise all bad or doubtful debts upon such terms and conditions as appear proper and most beneficial to the estate; and in like manner the court, or judge thereof in vacation, may make an order directing the assignee to release and discharge any vested, contingent or possible right or interest in or to any estate or effects assigned, upon such terms and conditions as the court, or judge thereof in vacation, may deem proper and just for the best interest of the estate. The assignee shall report his proceedings under this section to the court, or judge in vacation; and if in vacation, he shall notify the creditors by publication in the newspaper aforesaid for at least two weeks, the last insertion to be not less than ten days prior to the time of the hearing on said report, which notice shall state the object of said report and when and where the same will be heard, and upon a hearing thereof, the court, or judge in vacation, may approve or disapprove the same as the facts and circumstances may warrant: and provided, that any creditor may file his objections to said report on or before the date fixed by the notice, and such objection shall be heard and determined without delay, and nothing in this section authorized to be done by the assignee shall be final until the approval of the court as provided in this chapter.
History:
Laws 1889, ch. 71, § 42; C.L. 1897, § 2868; Code 1915, § 324; C.S. 1929, § 7-151; 1941 Comp., § 23-151; 1953 Comp., § 27-1-51.
ANNOTATIONS
Bracketed material.
— The bracketed material was inserted by the compiler and is not part of the law.
Compiler's notes.
— The words "provided in this chapter" were substituted for "herein provided" by the compilers of the 1915 Code. The former would apply to 56-9-1 to 56-9-53 NMSA 1978 while the latter would seem to apply only to this section, although it may refer to Laws 1889, ch. 71 compiled as 56-9-10 to 56-9-53 NMSA 1978.
Cross references.
— For publication of notice,
see
14-11-1 to 14-11-3, 14-11-13 NMSA 1978.
Am. Jur. 2d, A.L.R. and C.J.S. references. —
6 Am. Jur. 2d Assignments for Benefit of Creditors §§ 51, 53, 54, 61, 66, 103.
6A C.J.S. Assignments for Benefit of Creditors §§ 51, 112 to 126, 172.
2023 New Mexico Statutes › Chapter 56 - Commercial Instruments and Transactions › Article 9 - Transfers to Prefer Creditors - Voluntary Assignments › Section 56-9-52 - [Compensation of assignee and counsel.]

The fees and commissions to which the assignee may be entitled for services performed by him in the execution of his trust shall be fixed and allowed by the court, or judge thereof in vacation, for such amount, at such times and in such manner as the court or judge may direct, to be applied out of the trust funds in the hands of the assignee. In like manner the court shall allow counsel for the assignee reasonable compensation for professional services necessarily performed for and on behalf of the assignee in the execution of his trust.
History:
Laws 1889, ch. 71, § 43; C.L. 1897, § 2869; Code 1915, § 325; C.S. 1929, § 7-152; 1941 Comp., § 23-152; 1953 Comp., § 27-1-52.
ANNOTATIONS
Bracketed material.
— The bracketed material was inserted by the compiler and is not part of the law.
Am. Jur. 2d, A.L.R. and C.J.S. references. —
6 Am. Jur. 2d Assignments for Benefit of Creditors § 91.
Trust receipt, right of assignee for creditors of one giving, to commission and counsel fees in defense of action by holder of receipt, out of proceeds of goods, 49 A.L.R. 307, 87 A.L.R. 302, 101 A.L.R. 453, 168 A.L.R. 359.
Allowance of attorney's fees against property or fund for services rendered in action by assignee for creditors, 107 A.L.R. 758.
6A C.J.S. Assignments for Benefit of Creditors §§ 122, 124, 125.
2023 New Mexico Statutes › Chapter 56 - Commercial Instruments and Transactions › Article 9 - Transfers to Prefer Creditors - Voluntary Assignments › Section 56-9-53 - [Compensation of assignee as counsel.]

In case the assignee should be an attorney-at-law, in active practice, and performs the duties of assignee and counsel in the protection and execution of the trust, he shall be allowed by the court such compensation, in his capacity as such counsel, together with a reasonable allowance as assignee, at such times, in such manner and in such amounts as the court under all the circumstances may deem just and reasonable.
History:
Laws 1889, ch. 71, § 44; C.L. 1897, § 2870; Code 1915, § 326; C.S. 1929, § 7-153; 1941 Comp., § 23-153; 1953 Comp., § 27-1-53.
ANNOTATIONS
Bracketed material.
— The bracketed material was inserted by the compiler and is not part of the law.
Am. Jur. 2d, A.L.R. and C.J.S. references. —
6 Am. Jur. 2d Assignments for Benefit of Creditors §§ 37, 55, 91, 119, 131, 132.
6A C.J.S. Assignments for Benefit of Creditors §§ 46, 53, 124, 125, 141.
2023 New Mexico Statutes › Chapter 56 - Commercial Instruments and Transactions › Article 9 - Transfers to Prefer Creditors - Voluntary Assignments › Section 56-9-54 - [Permission to assign moneys due from state or subdivision; procedure and limitations.]

Assignments of moneys due or to become due from the state of New Mexico or from any municipal corporation, county or political subdivision or agency thereof under the terms of any construction, improvement, maintenance or repair contract or contracts for equipment or supplies shall be permitted subject to the following limitations and restrictions:
A. the assignment must, subject to Subparagraph D hereof, be to a bank, trust company or other financing institution;
B. the contract under which such moneys shall be due or become due must provide for payments to the assignor aggregating $500.00 or more;
C. the contract must not contain a provision prohibiting such assignment;
D. unless otherwise expressly permitted by the contract, such assignment shall cover all amounts payable under such contract and not already paid, shall not be made to more than one party, and shall not be subject to further assignment except that any such assignment may be made to one party as agent or trustee for two or more parties participating in such financing;
E. notice shall be given as required by Section 2 [56-9-55 NMSA 1978] of this act.
History:
1941 Comp., § 23-154, enacted by Laws 1947, ch. 22, § 1; 1953 Comp., § 27-1-54.
ANNOTATIONS
Bracketed material.
— The bracketed material was inserted by the compiler and is not part of the law.
"Acceptance companies" fall within the definition of a "financing institution,"
as such term is used in this section. 1958 Op. Att'y Gen. No. 58-232.
Lease-purchase agreements assignable to "acceptance companies".
— Suppliers may assign lease-purchase agreements entered into with a county and the rentals due thereon to financing organizations of a class generally known as "acceptance companies." 1958 Op. Att'y Gen. No. 58-232.
2023 New Mexico Statutes › Chapter 56 - Commercial Instruments and Transactions › Article 9 - Transfers to Prefer Creditors - Voluntary Assignments › Section 56-9-55 - [Written notices of assignment required.]

In the event of such assignment, the assignee thereof shall file written notice of the assignment, together with a true copy of the instrument of assignment:
A. with the officer of the state, municipal corporation, county, political subdivision or agency who will make the payment under the contract assigned; and
B. with the officer who executed the contract on behalf of the state or such municipal corporation, county, political subdivision or agency; and
C. with the surety or sureties upon the bond or bonds, if any, given to secure the performance of such contract.
History:
1941 Comp., § 23-155, enacted by Laws 1947, ch. 22, § 2; 1953 Comp., § 27-1-55.
ANNOTATIONS
Bracketed material.
— The bracketed material was inserted by the compiler and is not part of the law.
2023 New Mexico Statutes › Chapter 56 - Commercial Instruments and Transactions › Article 10 - Uniform Voidable Transactions › Section 56-10-1 to 56-10-13 - Repealed.

ANNOTATIONS
Repeals.
— Laws 1989, ch. 382, § 13 repealed 56-10-1 to 56-10-13 NMSA 1978, as enacted by Laws 1959, ch. 116, §§ 1-13, relating to fraudulent conveyances, effective June 16, 1989. For present comparable provisions,
see
56-10-14 NMSA 1978 et seq.
2023 New Mexico Statutes › Chapter 56 - Commercial Instruments and Transactions › Article 10 - Uniform Voidable Transactions › Section 56-10-14 - Short title.

Sections 56-10-14 through 56-10-29 NMSA 1978 may be cited as the "Uniform Voidable Transactions Act".
History:
Laws 1989, ch. 382, § 1; 2015, ch. 54, § 9.
ANNOTATIONS
The 2015 amendment,
effective January 1, 2016, changed the name of the Uniform Fraudulent Transfer Act to the Uniform Voidable Transactions Act; changed "This act" to "Sections 56-10-14 through 56-10-29 NMSA 1978", and after "Uniform", deleted "Fraudulent Transfer" and added "Voidable Transactions".
Federal preemption.
— A motion for the appointment of a receiver for a development corporation due to an allegedly fraudulent transfer which the corporation had made in violation of this article was denied, since the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, 12 U.S.C. § 1821, preempts the plaintiffs' count for fraudulent conveyance and does not allow for non-monetary relief.
Glenborough N.M. Assocs. v. Resolution Trust Corp.
, 802 F. Supp. 387 (D.N.M. 1992).
Law reviews.
— For note, "Matching the Historical Legal Principles on New Mexico's Exemption Laws to the Modern Identity of Annuities: Dona Ana Savings & Loan Ass'n v. Dofflemeyer,"
see
24 N.M.L. Rev. 365 (1994).
2023 New Mexico Statutes › Chapter 56 - Commercial Instruments and Transactions › Article 10 - Uniform Voidable Transactions › Section 56-10-17 - Value.

A. Value is given for a transfer or an obligation if, in exchange for the transfer or obligation, property is transferred or an antecedent debt is secured or satisfied, but value does not include an unperformed promise made otherwise than in the ordinary course of the promisor's business to furnish support to the debtor or another person.
B. For the purposes of Paragraph (2) of Subsection A of Section 56-10-18 and Section 56-10-19 NMSA 1978, a person gives a reasonably equivalent value if the person acquires an interest of the debtor in an asset pursuant to a regularly conducted, noncollusive foreclosure sale or execution of a power of sale for the acquisition or disposition of the interest of the debtor upon default under a mortgage, deed of trust or security agreement.
C. A transfer is made for present value if the exchange between the debtor and the transferee is intended by them to be contemporaneous and is in fact substantially contemporaneous.
History:
Laws 1989, ch. 382, § 4; 2015, ch. 54, § 12.
ANNOTATIONS
The 2015 amendment,
effective January 1, 2016, in Subsection B, after "Section", deleted "5 and Section 6 of the Uniform Fraudulent Transfer Act" and added "56-10-18 and Section 56-10-19 NMSA 1978".
Value not given.
— The children did not give value since they exchanged no property as consideration for the transfers and, absent any accounting, there was no showing of the existence of an antecedent debt.
Mazer v. Jones
, 184 Bankr. 377 (Bankr. D.N.M. 1995).
2023 New Mexico Statutes › Chapter 56 - Commercial Instruments and Transactions › Article 10 - Uniform Voidable Transactions › Section 56-10-19 - Transfer or obligation voidable as to present creditor.

A. A transfer made or obligation incurred by a debtor is voidable as to a creditor whose claim arose before the transfer was made or the obligation was incurred if the debtor made the transfer or incurred the obligation without receiving a reasonably equivalent value in exchange for the transfer or obligation and the debtor was insolvent at that time or the debtor became insolvent as a result of the transfer or obligation.
B. A transfer made by a debtor is voidable as to a creditor whose claim arose before the transfer was made if the transfer was made to an insider for an antecedent debt, the debtor was insolvent at that time and the insider had reasonable cause to believe that the debtor was insolvent.
C. Subject to Subsection B of Section 56-10-16 NMSA 1978, a creditor making a claim for relief under Subsection A or B of this section has the burden of proving the elements of the claim for relief by a preponderance of the evidence.
History:
Laws 1989, ch. 382, § 6; 2015, ch. 54, § 14.
ANNOTATIONS
The 2015 amendment,
effective January 1, 2016, changed "fraudulent" transfers to "voidable" transfers, as used in the Voidable Transactions Act; in the catchline, changed "Transfers fraudulent as to present creditors" to "Transfer or obligation voidable as to present creditor"; in Subsection A, after "debtor is", deleted "fraudulent" and added "voidable"; in Subsection B, after "debtor is", deleted "fraudulent" and added "voidable"; and added Subsection C.
Factors in determining voidable transfers.
— The noninclusive enumeration of factors contained in 56-10-18 NMSA 1978 and this section are to be considered when determining whether the funds that ordinarily would be exempt from attachment under 42-10-2 and 42-10-3 NMSA 1978 should be set aside as the result of a voidable transfer.
Dona Ana Sav. & Loan Ass'n v. Dofflemeyer
, 1993-NMSC-031, 115 N.M. 590, 855 P.2d 1054.
Trustee failed to meet burden of proving debtor's insolvency.
— Where debtor, a corporation wholly owned by defendants, filed a Chapter 11 bankruptcy petition, which was later converted to a Chapter 7 bankruptcy petition, and where the Chapter 7 trustee filed a fraudulent transfer claim, seeking to recover approximately $1,200,000 in transfers that debtor made to third parties as shareholder distributions, the bankruptcy court held that the trustee failed to satisfy its burden of showing that debtor was insolvent at the time of the alleged constructive fraudulent transfers and thus could not prevail on avoidance claims.
In re Quick Cash
, 620 B.R. 358 (Bankr. D. N.M. 2020).
2023 New Mexico Statutes › Chapter 56 - Commercial Instruments and Transactions › Article 10 - Uniform Voidable Transactions › Section 56-10-20 - When transfer is made or obligation is incurred.

For the purposes of the Uniform Voidable Transactions Act:
A. a transfer is made:
(1) with respect to an asset that is real property other than a fixture, but including the interest of a seller or purchaser under a contract for the sale of the asset, when the transfer is so far perfected that a good-faith purchaser of the asset from the debtor against which applicable law permits the transfer to be perfected cannot acquire an interest in the asset that is superior to the interest of the transferee; and
(2) with respect to an asset that is not real property or that is a fixture, when the transfer is so far perfected that a creditor on a simple contract cannot acquire a judicial lien otherwise than under the Uniform Voidable Transactions Act that is superior to the interests of the transferee;
B. if applicable law permits the transfer to be perfected as provided in Subsection A of this section and the transfer is not so perfected before the commencement of an action for relief under the Uniform Voidable Transactions Act, the transfer is deemed made immediately before the commencement of the action;
C. if applicable law does not permit the transfer to be perfected as provided in Subsection A of this section, the transfer is made when it becomes effective between the debtor and the transferee;
D. a transfer is not made until the debtor has acquired rights in the asset transferred; and
E. an obligation is incurred:
(1) if oral, when it becomes effective between the parties; or
(2) if evidenced by a record, when the record signed by the obligor is delivered to or for the benefit of the obligee.
History:
Laws 1989, ch. 382, § 7; 2015, ch. 54, § 15.
ANNOTATIONS
The 2015 amendment,
effective January 1, 2016, substituted "Uniform Voidable Transactions Act" for references to the former Uniform Fraudulent Transfer Act; after "Uniform", deleted "Fraudulent Transfer" and added "Voidable Transactions" throughout the section; in Subsection A, Paragraph (1), after "against", deleted "whom" and added "which"; and in Subsection E, Paragraph (2), after "evidenced by a", deleted "writing" and added "record", and after "when the", deleted "writing executed" and added "record signed".
Ownership of asset.
— Given the debtors' failure to segregate the trailer park from their assets at any material time or to trace the money that allegedly funded a trust for their children, there was no factual basis on which the court could conclude that a trust should be imposed; the debtors acquired equitable title to the trailer park at the time of purchase and it was their "asset" at the time of any purported transfer.
Mazer v. Jones
, 184 Bankr. 377 (Bankr. D.N.M. 1995).
Despite a prior unrecorded assignment to which the sellers orally consented, the debtors owned the trailer park when the quitclaim deed was recorded, and its recording was the first "transfer" of the debtors' interest for purposes of this article.
Mazer v. Jones
, 184 Bankr. 377 (Bankr. D.N.M. 1995).
2023 New Mexico Statutes › Chapter 56 - Commercial Instruments and Transactions › Article 10 - Uniform Voidable Transactions › Section 56-10-21 - Remedies of creditor.

A. In an action for relief against a transfer or obligation under the Uniform Voidable Transactions Act, a creditor, subject to the limitations in Section 56-10-22 NMSA 1978, may obtain:
(1) avoidance of the transfer or obligation to the extent necessary to satisfy the creditor's claim;
(2) an attachment or other provisional remedy against the asset transferred or other property of the transferee if available under applicable law; and
(3) subject to applicable principles of equity and in accordance with applicable rules of civil procedure:
(a) an injunction against further disposition by the debtor or a transferee, or both, of the asset transferred or of other property;
(b) appointment of a receiver to take charge of the asset transferred or of other property of the transferee; or
(c) any other relief the circumstances may require.
B. If a creditor has obtained a judgment on a claim against the debtor, the creditor, if the court so orders, may levy execution on the asset transferred or its proceeds.
History:
Laws 1989, ch. 382, § 8; 2015, ch. 54, § 16.
ANNOTATIONS
The 2015 amendment,
effective January 1, 2016, substituted "Uniform Voidable Transactions Act" for references to the former Uniform Fraudulent Transfer Act; in the catchline, changed "creditors" to "creditor"; in Subsection A, after "Uniform", deleted "Fraudulent Transfer" and added "Voidable Transactions", after "Section", deleted "9 of that act" and added "56-10-22 NMSA 1978"; and in Subsection A, Paragraph (2), after "transferee", deleted "in accordance with procedures prescribed b law; or" and added "if available under applicable law; and".
Bankruptcy trustee entitled to avoid transfers.
— Because the bankruptcy debtors made transfers with the actual intent to hinder, delay or defraud the judgment creditors, the trustee was entitled to avoid the transfers effected by the 1991 quitclaim deed and the 1992 recording of the assignment.
Mazer v. Jones
, 184 Bankr. 377 (Bankr. D.N.M. 1995).
2023 New Mexico Statutes › Chapter 56 - Commercial Instruments and Transactions › Article 10 - Uniform Voidable Transactions › Section 56-10-23 - Extinguishment of cause of action.

A cause of action with respect to a transfer or obligation under the Uniform Voidable Transactions Act is extinguished unless action is brought:
A. under Paragraph (1) of Subsection A of Section 56-10-18 NMSA 1978 not later than four years after the transfer was made or the obligation was incurred or, if later, not later than one year after the transfer or obligation was or could reasonably have been discovered by the claimant;
B. under Paragraph (2) of Subsection A of Section 56-10-18 NMSA 1978 or Subsection A of Section 56-10-19 NMSA 1978 not later than four years after the transfer was made or the obligation was incurred; or
C. under Subsection B of Section 56-10-19 NMSA 1978 not later than one year after the transfer was made.
History:
Laws 1989, ch. 382, § 10; 2015, ch. 54, § 18.
ANNOTATIONS
The 2015 amendment,
effective January 1, 2016, substituted "Uniform Voidable Transactions Act" for references to the former Uniform Fraudulent Transfer Act; in the introductory sentence, after "respect to a", deleted "fraudulent", and after "Uniform", deleted "Fraudulent Transfer" and added "Voidable Transactions"; in Subsection A, after "Section", deleted "5 of the Uniform Fraudulent Transfer Act within" and added "56-10-18 NMSA 1978 not later than", and after "if later", deleted "within" and added "not later than"; and in Subsection B, after the first occurrence of "Section", deleted "5" and added "56-10-18 NMSA 1978", and after the second occurrence of "Section", deleted "6 of that act within" and added "56-10-19 NMSA 1978 not later than"; and in Subsection C, after "Section", deleted "6 of that act within" and added "56-10-19 NMSA 1978 not later than", and after "made", deleted "or the obligation was incurred".
Applicability.
— Since the court found for the bankruptcy trustee on his claim of actual fraud, the one-year statute of limitations contained in this section was inapplicable.
Mazer v. Jones
, 184 Bankr. 377 (Bankr. D.N.M. 1995).
When the claimant bank purchased a judgment against the debtor from the Federal Deposit Insurance Corporation (FDIC), an action against the debtor to set aside an allegedly fraudulent transfer of property by the debtor had to be brought within four years from the date of transfer, not from the date of entry of the judgment in favor of the FDIC.
First Sw. Fin. Servs. v. Pulliam
, 1996-NMCA-032, 121 N.M. 436, 912 P.2d 828.
2023 New Mexico Statutes › Chapter 56 - Commercial Instruments and Transactions › Article 10 - Uniform Voidable Transactions › Section 56-10-24 - Governing law.

A. In this section, in determining a debtor's location, a debtor:
(1) who is an individual is located at the individual's principal residence;
(2) that is an organization and has only one place of business is located at its place of business; and
(3) that is an organization and has more than one place of business is located at its chief executive office.
B. A claim for relief in the nature of a claim for relief under the Uniform Voidable Transactions Act is governed by the local law of the jurisdiction in which the debtor is located when the transfer is made or the obligation is incurred.
History:
1978 Comp., § 56-10-24, enacted by Laws 2015, ch. 54, § 20.
ANNOTATIONS
Recompilations.
— Laws 2015, ch. 54, § 19 recompiled and amended former 56-10-24 NMSA 1978, relating to supplement provisions, as 56-10-26 NMSA 1978, effective January 1, 2016.
Compiler's notes.
— Laws 2015, ch. 54, § 20 enacted a new 56-10-24 NMSA 1978, effective January 1, 2016.
Effective dates.
— Laws 2015, ch. 54, §25 made Laws 2015, ch. 54, § 20 effective January 1, 2016.
2023 New Mexico Statutes › Chapter 56 - Commercial Instruments and Transactions › Article 10 - Uniform Voidable Transactions › Section 56-10-25 - Application to series organization.

A. As used in this section:
(1) "protected series" means an arrangement, however denominated, created by a series organization that, pursuant to the law under which the series organization is organized, has the characteristics set forth in Paragraph (2) of this subsection; and
(2) "series organization" means an organization that, pursuant to the law under which it is organized, has the following characteristics:
(a) the organic record of the organization provides for creation by the organization of one or more protected series, however denominated, with respect to specified property of the organization, and for records to be maintained for each protected series that identify the property of or associated with the protected series;
(b) debt incurred or existing with respect to the activities of, or property of or associated with, a particular protected series is enforceable against the property of or associated with the protected series only, and not against the property of or associated with the organization or other protected series of the organization; and
(c) debt incurred or existing with respect to the activities or property of the organization is enforceable against the property of the organization only, and not against the property of or associated with a protected series of the organization.
B. A series organization and each protected series of the organization is a separate person for purposes of the Uniform Voidable Transactions Act, even if for other purposes a protected series is not a person separate from the organization or other protected series of the organization.
C. The provisions of the Uniform Voidable Transactions Act do not authorize or prohibit the creation of a protected series or series organization.
History:
1978 Comp., § 56-10-25, enacted by Laws 2015, ch. 54, § 22.
ANNOTATIONS
Recompilations.
— Laws 2015, ch. 54, § 21 recompiled and amended former 56-10-25 NMSA 1978, relating to uniformity of application and construction, as 56-10-27 NMSA 1978, effective January 1, 2016. Laws 2015, ch. 54, § 22 enacted a new 56-10-25 NMSA 1978, effective January 1, 2016.
Effective dates.
— Laws 2015, ch. 54, § 25 made Laws 2015, ch. 54, § 22 effective January 1, 2016.
Am. Jur. 2d, A.L.R. and C.J.S. references. —
37 Am. Jur. 2d Fraudulent Conveyances § 4.
Maxim "he who comes into equity must come with clean hands," as basis for refusal of relief to party to fraudulent transfer, 4 A.L.R. 99.
Pari delicto, fact that the parties to a conveyance in fraud of creditors are not in, as affecting the right of the party guilty of fraud to relief, 7 A.L.R. 150.
Complainants' purpose to defraud creditors as defense to suit to recover property paid for by him but conveyed to defendant, 117 A.L.R. 1464.
37 C.J.S. Fraudulent Conveyances § 371.
2023 New Mexico Statutes › Chapter 56 - Commercial Instruments and Transactions › Article 10 - Uniform Voidable Transactions › Section 56-10-26 - Supplementary provisions.

A. Unless displaced by the provisions of the Uniform Voidable Transactions Act, the principles of law and equity, including the law merchant and the law relating to principal and agent, estoppel, laches, fraud, misrepresentation, duress, coercion, mistake, insolvency or other validating or invalidating cause, supplement its provisions.
B. The provisions of the Uniform Voidable Transactions Act are not the exclusive law on the subject of voidable transfers and obligations.
C. The provisions of the Uniform Voidable Transactions Act operate independently of rules in organic law that govern the internal affairs of business organizations that limit distributions by those organizations to their equity owners. Compliance with those rules does not insulate such distributions from being voidable pursuant to the provisions of that act.
History:
Laws 1989, ch. 382, § 11; 1978 Comp., § 56-10-24 recompiled and amended as § 56-10-26 by Laws 2015, ch. 54, § 19.
ANNOTATIONS
Recompilations.
— Laws 2015, ch. 54, § 19 recompiled and amended former 56-10-24 NMSA 1978 as 56-10-26 NMSA 1978, effective January 1, 2016.
The 2015 amendment,
effective January 1, 2016, substituted "Uniform Voidable Transactions Act" for references to the former Uniform Fraudulent Transfer Act; designated the previously undesignated language in the section as Subsection A; in Subsection A, after "Uniform", deleted "Fraudulent Transfer" and added "Voidable Transactions"; and added Subsections B and C.
2023 New Mexico Statutes › Chapter 56 - Commercial Instruments and Transactions › Article 10 - Uniform Voidable Transactions › Section 56-10-27 - Uniformity of application and construction.

The Uniform Voidable Transactions Act shall be applied and construed to effectuate its general purpose to make uniform the law with respect to the subject of the Uniform Voidable Transactions Act among states enacting it.
History:
Laws 1989, ch. 382, § 12; 1978 Comp., § 56-10-25, recompiled and amended as § 56-10-27 by Laws 2015, ch. 54, § 21.
ANNOTATIONS
Recompilations.
— Laws 2015, ch. 54, § 21 recompiled and amended former 56-10-25 NMSA 1978 as 56-10-27 NMSA 1978, effective January 1, 2016.
The 2015 amendment,
effective January 1, 2016, substituted "Uniform Voidable Transactions Act" for references to the former Uniform Fraudulent Transfer Act; and after each occurrence of "Uniform", deleted "Fraudulent Transfer" and added "Voidable Transactions".
2023 New Mexico Statutes › Chapter 56 - Commercial Instruments and Transactions › Article 10 - Uniform Voidable Transactions › Section 56-10-28 - Relation to Electronic Signatures in Global and National Commerce Act.

The Uniform Voidable Transactions Act modifies, limits or supersedes the Electronic Signatures in Global and National Commerce Act, 15 U.S.C. Section 7001 et seq., but does not modify, limit or supersede Section 101(c) of that act, 15 U.S.C. Section 7001(c), or authorize electronic delivery of any of the notices described in Section 103(b) of that act, 15 U.S.C. Section 7003(b).
History:
1978 Comp., § 56-10-28, enacted by Laws 2015, ch. 54, § 23.
ANNOTATIONS
Effective dates.
— Laws 2015, ch. 54, § 25 made Laws 2015, ch. 54, § 23 effective January 1, 2016.
2023 New Mexico Statutes › Chapter 56 - Commercial Instruments and Transactions › Article 10 - Uniform Voidable Transactions › Section 56-10-29 - Applicability.

A. The provisions of the Uniform Voidable Transactions Act:
(1) apply to a transfer made or obligation incurred on or after January 1, 2016; but
(2) do not apply to:
(a) a transfer made or an obligation incurred before January 1, 2016; or
(b) a right of action that has accrued before January 1, 2016.
B. A transfer made or an obligation incurred before January 1, 2016 and the rights, obligations and interests flowing from that transfer or obligation are governed by the Uniform Fraudulent Transfer Act as if the Uniform Voidable Transactions Act had not been enacted and may be terminated, completed, consummated or enforced pursuant to the Uniform Fraudulent Transfer Act.
C. For the purposes of this section, a transfer is made and an obligation is incurred at the time provided in Section 56-10-20 NMSA 1978.
History:
1978 Comp., § 56-10-29, enacted by Laws 2015, ch. 54, § 24.
ANNOTATIONS
Effective dates.
— Laws 2015, ch. 54, § 25 made Laws 2015, ch. 54, § 24 effective January 1, 2016.
2023 New Mexico Statutes › Chapter 56 - Commercial Instruments and Transactions › Article 11 - Artists' Consignment › Section 56-11-1 - Short title.

Sections 1 through 3 [56-11-1 to 56-11-3 NMSA 1978] of this act may be cited as the "Artists' Consignment Act."
History:
Laws 1979, ch. 196, § 1.
2023 New Mexico Statutes › Chapter 56 - Commercial Instruments and Transactions › Article 11 - Artists' Consignment › Section 56-11-2 - Definitions.

As used in the Artists' Consignment Act:
A. "art" means a painting, sculpture, drawing, work of graphic art, pottery, weaving, batik, macrame or quilt containing the artist's original handwritten signature on the work of art;
B. "artist" means the creator of a work of art, or, if he is deceased, the artist's heirs or personal representative;
C. "art dealer" means a person primarily engaged in the business of selling works of art;
D. "creditor" means a "creditor" as defined in Section 55-1-201 NMSA 1978; and
E. "person" means an individual, partnership, corporation or association.
History:
Laws 1979, ch. 196, § 2.
2023 New Mexico Statutes › Chapter 56 - Commercial Instruments and Transactions › Article 11 - Artists' Consignment › Section 56-11-3 - Art consignment; priority of claims, liens or security interests.

A work of art delivered to an art dealer by an artist for the purpose of exhibition or sale, and the artists' [artist's] share of the proceeds from the sale of the work by the dealer, whether to the dealer on his own account or to a third person, shall create a priority in favor of the artist over the claims, liens or security interests of the creditors of the art dealer, notwithstanding any provision of the Uniform Commercial Code [Chapter 55 NMSA 1978].
History:
Laws 1979, ch. 196, § 3.
ANNOTATIONS
Bracketed material.
— The bracketed material was inserted by the compiler and is not part of the law.
2023 New Mexico Statutes › Chapter 56 - Commercial Instruments and Transactions › Article 12 - Pawnbrokers › Section 56-12-1 - Short title.

This act [56-12-1 through 56-12-16] may be cited as the "Pawnbrokers Act."
History:
Laws 1985, ch. 228, § 1.
ANNOTATIONS
Applicability.
— The Pawnbrokers Act only applies to those pawns arising after the effective date of the act.
Wing Pawn Shop v. Taxation & Rev. Dep't
, 1991-NMCA-024, 111 N.M. 735, 809 P.2d 649).