2023 New Mexico Statutes › Chapter 55 - Uniform Commercial Code › Article 9 - Secured Transactions › Part 6 - DEFAULT › Subpart 1 - DEFAULT AND ENFORCEMENT OFSECURITY INTEREST › Section 55-9-623 - Right to redeem collateral.

(a) A debtor, any secondary obligor or any other secured party or lienholder may redeem collateral.
(b) To redeem collateral, a person shall tender:
(1) fulfillment of all obligations secured by the collateral; and
(2) the reasonable expenses and attorney fees described in Paragraph (1) of Subsection (a) of Section 55-9-615 NMSA 1978.
(c) A redemption may occur at any time before a secured party:
(1) has collected collateral under Section 55-9-607 NMSA 1978;
(2) has disposed of collateral or entered into a contract for its disposition under Section 55-9-610 NMSA 1978; or
(3) has accepted collateral in full or partial satisfaction of the obligation it secures under Section 55-9-622 NMSA 1978.
History:
1978 Comp., § 55-9-623, enacted by Laws 2001, ch. 139, § 120.
OFFICIAL COMMENTS
UCC Official Comments by ALI & the NCCUSL. Reproduced with permission of the PEB for the UCC. All rights reserved.
1. Source. Former section 9-506.
2. Redemption Right. Under this section, as under former section 9-506, the debtor or another secured party may redeem collateral as long as the secured party has not collected (section 9-607), disposed of or contracted for the disposition of (section 9-610), or accepted (section 9-620) the collateral. Although this section generally follows former section 9-506, it extends the right of redemption to holders of nonconsensual liens. To redeem the collateral a person must tender fulfillment of all obligations secured, plus certain expenses. If the entire balance of a secured obligation has been accelerated, it would be necessary to tender the entire balance. A tender of fulfillment obviously means more than a new promise to perform an existing promise. It requires payment in full of all monetary obligations then due and performance in full of all other obligations then matured. If unmatured secured obligations remain, the security interest continues to secure them (i.e., as if there had been no default).
3. Redemption of Remaining Collateral Following Partial Enforcement. Under section 9-610 a secured party may make successive dispositions of portions of its collateral. These dispositions would not affect the debtor's, another secured party's, or a lienholder's right to redeem the remaining collateral.
4. Effect of "Repledging." Section 9-207 generally permits a secured party having possession or control of collateral to create a security interest in the collateral. As explained in the comments to that section, the debtor's right (as opposed to its practical ability) to redeem collateral is not affected by, and does not affect, the priority of a security interest created by the debtor's secured party.
ANNOTATIONS
Effective dates.
— Laws 2001, ch. 139, § 155 makes the act effective July 1, 2001.
Decisions under former Section 55-9-506 NMSA 1978.
— In light of the similarity of this section and former Section 55-9-506 NMSA 1978, annotations decided under former Section 55-9-506 NMSA 1978 have been included in the annotations in this section.
Debtor has no conversion claim if did not redeem.
— A debtor who could have regained his right to possession by redemption, but did not redeem, has no claim in conversion, as conversion only protects the rights of one entitled to lawful possession.
Cordova v. Lee Galles Oldsmobile, Inc.
, 1983-NMCA-088, 100 N.M. 204, 668 P.2d 320 (decided under former law).
Law reviews.
— For article, "Breach of the Peace and New Mexico's Uniform Commercial Code," see 4 Nat. Resources J. 85 (1964).
Am. Jur. 2d, A.L.R. and C.J.S. references. —
68A Am. Jur. 2d Secured Transactions § 564 et seq.
Buyer's right of redemption on repossession of property by seller, 99 A.L.R. 1296.
79 C.J.S. Secured Transactions § 184.