reglab/statecodes huggingface dataset:
2023 New Mexico Statutes › Chapter 55 - Uniform Commercial Code › Article 9 - Secured Transactions › Part 1 - GENERAL PROVISIONS › Subpart 1 - SHORT TITLE, DEFINITIONS, ANDGENERAL CONCEPTS › Section 55-9-107B - No requirement to acknowledge or confirm; no duties. (Effective January 1, 2024.)

(a) A person that has control under Section 55-9-104, 55-9-105 or 55-9-105A NMSA 1978 is not required to acknowledge that it has control on behalf of another person.
(b) If a person acknowledges that it has or will obtain control on behalf of another person, unless the person otherwise agrees or law other than this article otherwise provides, the person does not owe any duty to the other person and is not required to confirm the acknowledgment to any other person.
History:
1978 Comp., § 55-9-107B, enacted by Laws 2023, ch. 142, § 48.
OFFICIAL COMMENTS
UCC Official Comments by ALI & the NCCUSL. Reproduced with permission of the PEB for the UCC. All rights reserved.
1.
Source.
Section 9-107B derives from Sections 8-106(g) and 9-313(f) and (g).
2.
Purpose.
Subsection (a) makes clear that a person that has control under the specified sections has no duty to acknowledge that it has or will obtain control on behalf of another person. Arrangements for a person to acknowledge that it has control on behalf of another person are not standardized. Accordingly, Subsection (b) leaves to the agreement of the parties and to any other applicable law any duties of a person that does acknowledge that it has or will obtain control on behalf of any other person.
ANNOTATIONS
Effective dates.
— Laws 2023, ch. 142, § 112 made Laws 2023, ch. 142, § 48 effective January 1, 2024.
2023 New Mexico Statutes › Chapter 55 - Uniform Commercial Code › Article 9 - Secured Transactions › Part 1 - GENERAL PROVISIONS › Subpart 2 - APPLICABILITY OF ARTICLE › Section 55-9-111 - Repealed.

ANNOTATIONS
Repeals.
— Laws 1992, ch. 114, § 237C repeals 55-9-111 NMSA 1978, as enacted by Laws 1961, ch. 96, § 9-111, relating to consignment, effective July 1, 1992. For provisions of former section,
see
the 1991 NMSA 1978 on
NMOneSource.com
.
2023 New Mexico Statutes › Chapter 55 - Uniform Commercial Code › Article 9 - Secured Transactions › Part 1 - GENERAL PROVISIONS › Subpart 2 - APPLICABILITY OF ARTICLE › Section 55-9-112 - Superseded.

ANNOTATIONS
Compiler's notes.
— Several sections of former Article 9 were not repealed, however, it appears that this may have been an oversight as these sections appear to have been superseded. The Official Comments to Section 9-102 (55-9-102 NMSA 1978) states that the definition of "debtor" found in 9-102(a)(28) renders unnecessary former Section 9-112 (55-9-112 NMSA 1978).
2023 New Mexico Statutes › Chapter 55 - Uniform Commercial Code › Article 9 - Secured Transactions › Part 1 - GENERAL PROVISIONS › Subpart 2 - APPLICABILITY OF ARTICLE › Section 55-9-113 - Superseded.

ANNOTATIONS
Compiler's notes.
— Several sections of former Article 9 were not repealed, however, it appears that this may have been an oversight as these sections appear to have been superseded. The Official Comments to Section 9-110 (55-9-110 NMSA 1978) states that the source of Section 9-110 (55-9-110 NMSA 1978) is "former Section 9-113 (55-9-113)".
2023 New Mexico Statutes › Chapter 55 - Uniform Commercial Code › Article 9 - Secured Transactions › Part 1 - GENERAL PROVISIONS › Subpart 2 - APPLICABILITY OF ARTICLE › Section 55-9-114 - Superseded.

ANNOTATIONS
Compiler's notes.
— Several sections of former Article 9 were not repealed, however, it appears that this may have been an oversight as these sections appear to have been superseded. The Official Comments to Section 9-110 (55-9-110 NMSA 1978) states that the source of Section 9-110 (55-9-110 NMSA 1978) is "former Section 9-113 (55-9-113)".
2023 New Mexico Statutes › Chapter 55 - Uniform Commercial Code › Article 9 - Secured Transactions › Part 1 - GENERAL PROVISIONS › Subpart 2 - APPLICABILITY OF ARTICLE › Section 55-9-115 - Superseded.

ANNOTATIONS
Compiler's notes.
— Several sections of former Article 9 were not repealed, however, it appears that this may have been an oversight as these sections appear to have been superseded. Subsection (1) of this section has been superseded by Section 9-102 (55-9-102 NMSA 1978) and 9-106 (55-9-106 NMSA 1978). Subsection (2) of this section has been superseded by Section 9-203 (55-9-203 NMSA 1978) and 55-9-308 (55-9-308 NMSA 1978). Subsection (3) of this section has been superseded by Section 9-108 (55-9-108 NMSA 1978). Subsection (4) has been superseded by Section 9-309 (55-9-309 NMSA 1978) and 9-314 (55-9-314 NMSA 1978). Subsection (5) has been superseded by Section 9-327 (55-9-327 NMSA 1978), 9-328 (55-9-328 NMSA 1978) and 9-329 (55-9-329 NMSA 1978). Subsection (6) of this section has been superseded by Section 9-203 (55-9-203 NMSA 1978) and 9-313 (55-9-313 NMSA 1978). See the Official Comments following each of those sections.
2023 New Mexico Statutes › Chapter 55 - Uniform Commercial Code › Article 9 - Secured Transactions › Part 1 - GENERAL PROVISIONS › Subpart 2 - APPLICABILITY OF ARTICLE › Section 55-9-116 - Superseded.

ANNOTATIONS
Compiler's notes.
— Several sections of former Article 9 were not repealed, however, it appears that this may have been an oversight as these sections appear to have been superseded. This section has been superseded by Section 9-206 (55-9-206 NMSA 1978) and 9-309 (55-9-309 NMSA 1978). The Official Comments state that the source of Section 9-206 (55-9-206 NMSA 1978) is "former Section 9-206 (55-9-206)" and "former Section 9-309 (55-9-309)".
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 1 - EFFECTIVENESS AND ATTACHMENT › Section 55-9-204 - After-acquired property; future advances. (Effective January 1, 2024.)

(a) Except as otherwise provided in Subsection (b) of this section, a security agreement may create or provide for a security interest in after-acquired collateral.
(b) Subject to Subsection (b.1) of this section, security interest does not attach under a term constituting an after-acquired property clause to:
(1) consumer goods, other than an accession when given as additional security, unless the debtor acquires rights in them within ten days after the secured party gives value; or
(2) a commercial tort claim.
(b.1) Subsection (b) of this section does not prevent a security interest from attaching:
(1) to consumer goods as proceeds under Subsection (a) of Section 55-9-315 NMSA 1978 or commingled goods under Subsection (c) of Section 55-9-336 NMSA 1978;
(2) to a commercial tort claim as proceeds under Subsection (a) of Section 55-9-315 NMSA 1978; or
(3) under an after-acquired property clause to property that is proceeds of consumer goods or a commercial tort claim.
(c) A security agreement may provide that collateral secures, or that accounts, chattel paper, payment intangibles or promissory notes are sold in connection with, future advances or other value, whether or not the advances or value are given pursuant to commitment.
History:
1978 Comp., § 55-9-204, enacted by Laws 2001, ch. 139, § 14; 2023, ch. 142, § 51.
ANNOTATIONS
The 2023 amendment,
effective January 1, 2024, added a provision related creating or providing a security interest in after-acquired collateral; in Subsection (b), added "Subject to Subsection (b.1) of this section"; and added Subsection (b.1).
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 55-9-207 - Rights and duties of secured party having possession or control of collateral. (Effective January 1, 2024.)

(a) Except as otherwise provided in Subsection (d) of this section, a secured party shall use reasonable care in the custody and preservation of collateral in the secured party's possession. In the case of chattel paper or an instrument, reasonable care includes taking necessary steps to preserve rights against prior parties unless otherwise agreed.
(b) Except as otherwise provided in Subsection (d) of this section, if a secured party has possession of collateral:
(1) reasonable expenses, including the cost of insurance and payment of taxes or other charges, incurred in the custody, preservation, use or operation of the collateral are chargeable to the debtor and are secured by the collateral;
(2) the risk of accidental loss or damage is on the debtor to the extent of a deficiency in any effective insurance coverage;
(3) the secured party shall keep the collateral identifiable, but fungible collateral may be commingled; and
(4) the secured party may use or operate the collateral:
(A) for the purpose of preserving the collateral or its value;
(B) as permitted by an order of a court having competent jurisdiction; or
(C) except in the case of consumer goods, in the manner and to the extent agreed by the debtor.
(c) Except as otherwise provided in Subsection (d) of this section, a secured party having possession of collateral or control of collateral under Section 55-7-106, 55-9-104, 55-9-105, 55-9-105A, 55-9-106, 55-9-107 or 55-9-107A NMSA 1978:
(1) may hold as additional security any proceeds, except money or funds, received from the collateral;
(2) shall apply money or funds received from the collateral to reduce the secured obligation, unless remitted to the debtor; and
(3) may create a security interest in the collateral.
(d) If the secured party is a buyer of accounts, chattel paper, payment intangibles or promissory notes or is a consignor:
(1) Subsection (a) of this section does not apply unless the secured party is entitled under an agreement:
(A) to charge back uncollected collateral; or
(B) otherwise to full or limited recourse against the debtor or a secondary obligor based on the nonpayment or other default of an account debtor or other obligor on the collateral; and
(2) Subsections (b) and (c) of this section do not apply.
History:
1978 Comp., § 55-9-207, enacted by Laws 2001, ch. 139, § 17; 2005, ch. 144, § 96; 2023, ch. 142, § 52.
ANNOTATIONS
The 2023 amendment,
effective January 1, 2024, added certain statutory references to a provision related to the rights and duties of a secured party having possession of collateral or control of collateral; and in Subsection (c), added "55-9-105A", and "or 55-9-107A".
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 55-9-209 - Duties of secured party if account debtor has been notified of assignment.

(a) Except as otherwise provided in Subsection (c) of this section, this section applies if:
(1) there is no outstanding secured obligation; and
(2) the secured party is not committed to make advances, incur obligations or otherwise give value.
(b) Within ten days after receiving an authenticated demand by the debtor, a secured party shall send to an account debtor that has received notification of an assignment to the secured party as assignee under Subsection (a) of Section 55-9-406 NMSA 1978 an authenticated record that releases the account debtor from any further obligation to the secured party.
(c) This section does not apply to an assignment constituting the sale of an account, chattel paper or payment intangible.
History:
1978 Comp., § 55-9-209, enacted by Laws 2001, ch. 139, § 19.
OFFICIAL COMMENTS
UCC Official Comments by ALI & the NCCUSL. Reproduced with permission of the PEB for the UCC. All rights reserved.
1.
Source.
New.
2.
Scope and Purpose.
Like Sections 9-208 [55-9-208 NMSA 1978] and 9-513 [55-9-513 NMSA 1978], which require a secured party to relinquish control of collateral and to file or provide a termination statement for a financing statement, this section requires a secured party to free up collateral when there no longer is any outstanding secured obligation or any commitment to give value in the future. This section addresses the case in which account debtors have been notified to pay a secured party to whom the receivables have been assigned. It requires the secured party (assignee) to inform the account debtors that they no longer are obligated to make payment to the secured party.
See
Subsection (b). It does not apply to account debtors whose obligations on an account, chattel paper, or payment intangible have been sold.
See
Subsection (c).
3.
"Signed" Replaces "Authenticated."
Consistent with the revised definition of "sign" in Section 1-201 [55-1-201 NMSA 1978], the cognate term "signed" replaces references to "authenticated" in the pre-2022 text of this section.
ANNOTATIONS
Effective dates.
— Laws 2001, ch. 139, § 155 makes the act effective July 1, 2001.
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 55-9-209 - Duties of secured party if account debtor has been notified of assignment. (Effective January 1, 2024.)

(a) Except as otherwise provided in Subsection (c) of this section, this section applies if:
(1) there is no outstanding secured obligation; and
(2) 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, a secured party shall send to an account debtor that has received notification under Subsection (a) of Section 55-9-406 NMSA 1978 or Subsection (b) of Section 55-12-106 NMSA 1978 of an assignment to the secured party as assignee a signed record that releases the account debtor from any further obligation to the secured party.
(c) This section does not apply to an assignment constituting the sale of an account, chattel paper or payment intangible.
History:
1978 Comp., § 55-9-209, enacted by Laws 2001, ch. 139, § 19; 2023, ch. 142, § 54.
ANNOTATIONS
The 2023 amendment,
effective January 1, 2024, revised certain provisions related to the duties of secured parties; and in Subsection (b), after "receiving", deleted "an authenticated" and added "a signed", after "notification", added "under Subsection (a) of Section 55-9-406 NMSA 1978 or Subsection (b) of Section 55-12-106 NMSA 1978", and after "assignee", deleted "under Subsection (a) of Section 55-9-406 NMSA 1978 an authenticated" and added "a signed".
2023 New Mexico Statutes › Chapter 55 - Uniform Commercial Code › Article 9 - Secured Transactions › Part 3 - PERFECTION AND PRIORITY › Subpart 1 - LAW GOVERNING PERFECTION ANDPRIORITY › Section 55-9-301 - Law governing perfection and priority of security interests. (Effective January 1, 2024.)

Except as otherwise provided in Sections 55-9-303 through 55-9-306B NMSA 1978, the following rules determine the law governing perfection, the effect of perfection or nonperfection and the priority of a security interest in collateral:
(1) except as otherwise provided in this section, while a debtor is located in a jurisdiction, the local law of that jurisdiction governs perfection, the effect of perfection or nonperfection and the priority of a security interest in collateral;
(2) while collateral is located in a jurisdiction, the local law of that jurisdiction governs perfection, the effect of perfection or nonperfection and the priority of a possessory security interest in that collateral;
(3) except as otherwise provided in Subsection (4) of this section, while tangible negotiable tangible documents, goods, instruments or tangible money is located in a jurisdiction, the local law of that jurisdiction governs:
(A) perfection of a security interest in the goods by filing a fixture filing;
(B) perfection of a security interest in timber to be cut; and
(C) the effect of perfection or nonperfection and the priority of a nonpossessory security interest in the collateral; and
(4) the local law of the jurisdiction in which the wellhead or minehead is located governs perfection, the effect of perfection or nonperfection and the priority of a security interest in as-extracted collateral.
History:
1978 Comp., § 55-9-301, enacted by Laws 2001, ch. 139, § 21; 2005, ch. 144, § 98; 2023, ch. 142, § 56.
ANNOTATIONS
The 2023 amendment,
effective January 1, 2024, in the introductory clause, after "through", deleted "55-9-306" and added "55-9-306B"; and in Subsection (3), in the introductory clause, after "negotiable", added "tangible", after "instruments", added "or tangible", and after "money", deleted "or tangible chattel paper".
2023 New Mexico Statutes › Chapter 55 - Uniform Commercial Code › Article 9 - Secured Transactions › Part 3 - PERFECTION AND PRIORITY › Subpart 1 - LAW GOVERNING PERFECTION ANDPRIORITY › Section 55-9-302 - Law governing perfection and priority of agricultural liens.

While farm products are located in a jurisdiction, the local law of that jurisdiction governs perfection, the effect of perfection or nonperfection and the priority of an agricultural lien on the farm products.
History:
1978 Comp., § 55-9-302, enacted by Laws 2001, ch. 139, § 22.
OFFICIAL COMMENTS
UCC Official Comments by ALI & the NCCUSL. Reproduced with permission of the PEB for the UCC. All rights reserved.
1. Source. New.
2. Agricultural Liens. This section provides choice-of-law rules for agricultural liens on farm products. Perfection, the effect of perfection or nonperfection, and priority all are governed by the law of the jurisdiction in which the farm products are located. Other choice-of-law rules, including Section 1-301 [55-1-301 NMSA 1978], determine which jurisdiction's law governs other matters, such as the secured party's rights on default.
See
Section 9-301 [55-9-301 NMSA 1978], Comment 2. Inasmuch as no agricultural lien on proceeds arises under this Article, this section does not expressly apply to proceeds of agricultural liens. However, if another statute creates an agricultural lien on proceeds, it may be appropriate for courts to apply the choice-of-law rule in this section to determine priority in the proceeds.
ANNOTATIONS
Cross references.
— For Farm Products Secured Interest Act, see 56-13-1 NMSA 1958.
Repeals and reenactments.
— Laws 2001, ch. 139, § 22 repealed former 55-9-302 NMSA 1978, as amended by Laws 1996, ch. 47, § 63, and enacted a new section, effective July 1, 2001.
2023 New Mexico Statutes › Chapter 55 - Uniform Commercial Code › Article 9 - Secured Transactions › Part 3 - PERFECTION AND PRIORITY › Subpart 1 - LAW GOVERNING PERFECTION ANDPRIORITY › Section 55-9-304 - Law governing perfection and priority of security interests in deposit accounts. (Effective January 1, 2024.)

(a) The local law of a bank's jurisdiction governs perfection, the effect of perfection or nonperfection and the priority of a security interest in a deposit account maintained with that bank even if the transaction does not bear any relation to the bank's jurisdiction.
(b) The following rules determine a bank's jurisdiction for purposes of Sections 55-9-301 through 55-9-342 NMSA 1978:
(1) if an agreement between the bank and its customer governing the deposit account expressly provides that a particular jurisdiction is the bank's jurisdiction for purposes of the Uniform Commercial Code, that jurisdiction is the bank's jurisdiction;
(2) if Paragraph (1) of this subsection does not apply and an agreement between the bank and its customer governing the deposit account expressly provides that the agreement is governed by the law of a particular jurisdiction, that jurisdiction is the bank's jurisdiction;
(3) if neither Paragraph (1) nor Paragraph (2) of this subsection applies and an agreement between the bank and its customer governing the deposit account expressly provides that the deposit account is maintained at an office in a particular jurisdiction, that jurisdiction is the bank's jurisdiction;
(4) if none of the preceding paragraphs applies, the bank's jurisdiction is the jurisdiction in which the office identified in an account statement as the office serving the customer's account is located; and
(5) if none of the preceding paragraphs applies, the bank's jurisdiction is the jurisdiction in which the chief executive office of the bank is located.
History:
1978 Comp., § 55-9-304, enacted by Laws 2001, ch. 139, § 24; 2005, ch. 144, § 99; 2023, ch. 142, § 57.
ANNOTATIONS
The 2023 amendment,
effective January 1, 2024, clarified a provision related to the law governing perfection, the effect of perfection or nonperfection and the priority of a security interest in a deposit account; and in Subsection (a), after "with that bank", added "even if the transaction does not bear any relation to the bank's jurisdiction".
2023 New Mexico Statutes › Chapter 55 - Uniform Commercial Code › Article 9 - Secured Transactions › Part 3 - PERFECTION AND PRIORITY › Subpart 1 - LAW GOVERNING PERFECTION ANDPRIORITY › Section 55-9-306B - Law governing perfection and priority of security interests in controllable accounts, controllable electronic records and controllable payment intangibles. (Effective January 1, 2024.)

(a) Except as provided in Subsection (b) of this section, the local law of the controllable electronic record's jurisdiction specified in Subsections (c) and (d) of Section 55-12-107 NMSA 1978 governs perfection, the effect of perfection or nonperfection and the priority of a security interest in a controllable electronic record and a security interest in a controllable account or controllable payment intangible evidenced by the controllable electronic record.
(b) The local law of the jurisdiction in which the debtor is located governs:
(1) perfection of a security interest in a controllable account, controllable electronic record or controllable payment intangible by filing; and
(2) automatic perfection of a security interest in a controllable payment intangible created by a sale of the controllable payment intangible.
History:
1978 Comp., § 55-9-306B, enacted by Laws 2023, ch. 142, § 60.
OFFICIAL COMMENTS
UCC Official Comments by ALI & the NCCUSL. Reproduced with permission of the PEB for the UCC. All rights reserved.
1.
Perfection by control and priority.
Subsection (a) deals with perfection of a security interest in a controllable account, controllable electronic record, or controllable payment intangible other than by filing—i.e., perfection by control under Section 12-105 [55-12-105 NMSA 1978]—and priority. For these purposes the governing law is that of the controllable electronic record's jurisdiction under Section 12-107(c) and (d) [55-12-107 NMSA 1978].
2.
Perfection by filing.
Under Subsection (b) the local law of the jurisdiction of the debtor's location governs perfection of a security interest in a controllable account, controllable electronic record, or controllable payment intangible by filing (but not priority, as to which Subsection (a) would apply). Because controllable electronic records are general intangibles and controllable accounts and controllable payment intangibles are subsets of accounts and payment intangibles, this provision does not change prior law.
ANNOTATIONS
Effective dates.
— Laws 2023, ch. 142, § 112 made Laws 2023, ch. 142, § 60 effective January 1, 2024.
2023 New Mexico Statutes › Chapter 55 - Uniform Commercial Code › Article 9 - Secured Transactions › Part 3 - PERFECTION AND PRIORITY › Subpart 2 - PERFECTION › Section 55-9-310 - When filing required to perfect security interest or agricultural lien; security interests and agricultural liens to which filing provisions do not apply. (Effective January 1, 2024.)

(a) Except as otherwise provided in Subsection (b) of this section and in Section 55-9-312 NMSA 1978, a financing statement must be filed to perfect all security interests and agricultural liens.
(b) The filing of a financing statement is not necessary to perfect a security interest:
(1) that is perfected under Subsection (d), (e), (f) or (g) of Section 55-9-308 NMSA 1978;
(2) that is perfected under Section 55-9-309 NMSA 1978 when it attaches;
(3) in property subject to a statute, regulation or treaty described in Subsection (a) of Section 55-9-311 NMSA 1978;
(4) in goods in possession of a bailee that is perfected under Paragraph (1) or (2) of Subsection (d) of Section 55-9-312 NMSA 1978;
(5) in certificated securities, documents, goods or instruments that is perfected without filing, control or possession under Subsection (e), (f) or (g) of Section 55-9-312 NMSA 1978;
(6) in collateral in the secured party's possession under Section 55-9-313 NMSA 1978;
(7) in a certificated security that is perfected by delivery of the security certificate to the secured party under Section 55-9-313 NMSA 1978;
(8) in controllable accounts, controllable electronic records, controllable payment intangibles, deposit accounts, electronic documents, investment property or letter-of-credit rights that is perfected by control under Section 55-9-314 NMSA 1978;
(9) in proceeds that is perfected under Section 55-9-315 NMSA 1978; or
(10) that is perfected under Section 55-9-316 NMSA 1978.
(c) If a secured party assigns a perfected security interest or agricultural lien, a filing under Chapter 55, Article 9 NMSA 1978 is not required to continue the perfected status of the security interest against creditors of and transferees from the original debtor.
History:
1978 Comp., § 55-9-310, enacted by Laws 2001, ch. 139, § 30; 2005, ch. 144, § 101; 2023, ch. 142, § 61.
ANNOTATIONS
The 2023 amendment,
effective January 1, 2024, provided that the filing of a financing statement is not necessary to perfect a security interest in controllable accounts, controllable electronic records or controllable payment intangibles; and in Paragraph (b)(8), after "in", added "controllable accounts, controllable electronic records, controllable payment intangibles".
2023 New Mexico Statutes › Chapter 55 - Uniform Commercial Code › Article 9 - Secured Transactions › Part 3 - PERFECTION AND PRIORITY › Subpart 2 - PERFECTION › Section 55-9-314 - Perfection by control. (Effective January 1, 2024.)

(a) A security interest in controllable accounts, controllable electronic records, controllable payment intangibles, deposit accounts, electronic documents, electronic money, investment property or letter-of-credit rights may be perfected by control of the collateral under Section 55-7-106, 55-9-104, 55-9-105A, 55-9-106, 55-9-107 or 55-9-107A NMSA 1978.
(b) A security interest in controllable accounts, controllable electronic records, controllable payment intangibles, deposit accounts, electronic documents, electronic money or letter-of-credit rights is perfected by control under Section 55-7-106, 55-9-104, 55-9-105A, 55-9-107 or 55-9-107A NMSA 1978 when the secured party obtains control and remains perfected by control only while the secured party retains control.
(c) A security interest in investment property is perfected by control under Section 55-9-106 NMSA 1978 not earlier than the time the secured party obtains control and remains perfected by control until:
(1) the secured party does not have control; and
(2) one of the following occurs:
(A) if the collateral is a certificated security, the debtor has or acquires possession of the security certificate;
(B) if the collateral is an uncertificated security, the issuer has registered or registers the debtor as the registered owner; or
(C) if the collateral is a security entitlement, the debtor is or becomes the entitlement holder.
History:
1978 Comp., § 55-9-314, enacted by Laws 2001, ch. 139, § 34; 2005, ch. 144, § 104; 2023, ch. 142, § 64.
ANNOTATIONS
The 2023 amendment,
effective January 1, 2024, revised provisions related to perfecting a security interest by control, and updated certain language in the section; in Subsection (a), deleted "investment property, deposit accounts, letter-of-credit rights, electronic chattel paper or electronic documents" and added "controllable accounts, controllable electronic records, controllable payment intangibles, deposit accounts, electronic documents, electronic money, investment property or letter-of-credit rights", and after "55-9-104", deleted "55-9-105" and added "55-9-105A", and after "55-9-107", added "or 55-9-107A"; in Subsection (b), deleted "deposit accounts, electronic chattel paper, letter-of-credit rights or electronic documents" and added "controllable accounts, controllable electronic records, controllable payment intangibles, deposit accounts, electronic documents, electronic money or letter-of-credit rights", and after "55-9-104", deleted "55-9-105" and added "55-9-105A", and after "55-9-107", added "or 55-9-107A"; and in Subsection (c), after "55-9-106 NMSA 1978", deleted "from" and added "not earlier than".
2023 New Mexico Statutes › Chapter 55 - Uniform Commercial Code › Article 9 - Secured Transactions › Part 3 - PERFECTION AND PRIORITY › Subpart 3 - PRIORITY › Section 55-9-321 - Licensee of general intangible and lessee of goods in ordinary course of business.

(a) In this section, "licensee in ordinary course of business" means a person that becomes a licensee of a general intangible in good faith, without knowledge that the license violates the rights of another person in the general intangible, and in the ordinary course from a person in the business of licensing general intangibles of that kind. A person becomes a licensee in the ordinary course if the license to the person comports with the usual or customary practices in the kind of business in which the licensor is engaged or with the licensor's own usual or customary practices.
(b) A licensee in ordinary course of business takes its rights under a nonexclusive license free of a security interest in the general intangible created by the licensor, even if the security interest is perfected and the licensee knows of its existence.
(c) A lessee in ordinary course of business takes its leasehold interest free of a security interest in the goods created by the lessor, even if the security interest is perfected and the lessee knows of its existence.
History:
1978 Comp., § 55-9-321, enacted by Laws 2001, ch. 139, § 41.
OFFICIAL COMMENTS
UCC Official Comments by ALI & the NCCUSL. Reproduced with permission of the PEB for the UCC. All rights reserved.
1. Source. Derived from sections 2A-103(1)(o) and 2A-307(3).
2. Licensee in Ordinary Course. Like the analogous rules in section 9-320(a) with respect to buyers in ordinary course and subsection (c) with respect to lessees in ordinary course, the new rule in subsection (b) reflects the expectations of the parties and the marketplace: A licensee under a nonexclusive license takes subject to a security interest unless the secured party authorizes the license free of the security interest or other, controlling law such as that of this section (protecting ordinary-course licensees) dictates a contrary result.
See
sections 9-201 and 9-315. The definition of "licensee in ordinary course of business" in subsection (a) is modeled upon that of "buyer in ordinary course of business."
3. Lessee in Ordinary Course. Subsection (c) contains the rule formerly found in section 2A-307(3). The rule works in the same way as that of section 9-320(a).
ANNOTATIONS
Effective dates.
— Laws 2001, ch. 139, § 155 makes the act effective July 1, 2001.
2023 New Mexico Statutes › Chapter 55 - Uniform Commercial Code › Article 9 - Secured Transactions › Part 3 - PERFECTION AND PRIORITY › Subpart 3 - PRIORITY › Section 55-9-323 - Future advances. (Effective January 1, 2024.)

(a) Except as otherwise provided in Subsection (c) of this section, for purposes of determining the priority of a perfected security interest under Paragraph (1) of Subsection (a) of Section 55-9-322 NMSA 1978, perfection of the security interest dates from the time an advance is made to the extent that the security interest secures an advance that:
(1) is made while the security interest is perfected only:
(A) under Section 55-9-309 NMSA 1978 when it attaches; or
(B) temporarily under Subsection (e), (f) or (g) of Section 55-9-312 NMSA 1978; and
(2) is not made pursuant to a commitment entered into before or while the security interest is perfected by a method other than under Section 55-9-309 or Subsection (e), (f) or (g) of Section 55-9-312 NMSA 1978.
(b) Except as otherwise provided in Subsection (c) of this section, a security interest is subordinate to the rights of a person that becomes a lien creditor to the extent that the security interest secures an advance made more than forty-five days after the person becomes a lien creditor unless the advance is made:
(1) without knowledge of the lien; or
(2) pursuant to a commitment entered into without knowledge of the lien.
(c) Subsections (a) and (b) of this section do not apply to a security interest held by a secured party that is a buyer of accounts, chattel paper, payment intangibles or promissory notes or a consignor.
(d) Except as otherwise provided in Subsection (e) of this section, a buyer of goods takes free of a security interest to the extent that it secures advances made after the earlier of:
(1) the time the secured party acquires knowledge of the buyer's purchase; or
(2) forty-five days after the purchase.
(e) Subsection (d) of this section does not apply if the advance is made pursuant to a commitment entered into without knowledge of the buyer's purchase and before the expiration of the forty-five-day period.
(f) Except as otherwise provided in Subsection (g) of this section, a lessee of goods, other than a lessee in ordinary course of business, takes the leasehold interest free of a security interest to the extent that it secures advances made after the earlier of:
(1) the time the secured party acquires knowledge of the lease; or
(2) forty-five days after the lease contract becomes enforceable.
(g) Subsection (f) of this section does not apply if the advance is made pursuant to a commitment entered into without knowledge of the lease and before the expiration of the forty-five-day period.
History:
1978 Comp., § 55-9-323, enacted by Laws 2001, ch. 139, § 43; 2023, ch. 142, § 68.
ANNOTATIONS
The 2023 amendment,
effective January 1, 2024, in Subsection (d), after "buyer of goods", deleted "other than a buyer in ordinary course of business".
2023 New Mexico Statutes › Chapter 55 - Uniform Commercial Code › Article 9 - Secured Transactions › Part 3 - PERFECTION AND PRIORITY › Subpart 3 - PRIORITY › Section 55-9-331 - Priority of rights of purchasers of controllable accounts, controllable electronic records, controllable payment intangibles, documents, instruments and securities under other articles; priority of interests in financial assets and security entitlements and protection against assertion of claim under Chapter 55, Articles 8 and 9 NMSA 1978. (Effective January 1, 2024.)

(a) Chapter 55, Article 9 NMSA 1978 does not limit the rights of a holder in due course of a negotiable instrument, a holder to which a negotiable document of title has been duly negotiated or a protected purchaser of a security or a qualifying purchaser of a controllable account, controllable electronic record or controllable payment intangible. These holders or purchasers take priority over an earlier security interest, even if perfected, to the extent provided in Chapter 55, Articles 3, 7, 8 and 12 NMSA 1978.
(b) Chapter 55, Article 9 NMSA 1978 does not limit the rights of or impose liability on a person to the extent that the person is protected against the assertion of a claim under Chapter 55, Articles 8 and 12 NMSA 1978.
(c) Filing under Chapter 55, Article 9 NMSA 1978 does not constitute notice of a claim or defense to the holders, or purchasers, or persons described in Subsections (a) and (b) of this section.
History:
1978 Comp., § 55-9-331, enacted by Laws 2001, ch. 139, § 51; 2015, ch. 54, § 4; 2023, ch. 142, § 72.
ANNOTATIONS
The 2023 amendment,
effective January 1, 2024,
added certain instruments to an existing provision related to the priority of rights of purchasers of these instruments; in the section heading, added "controllable accounts, controllable electronic records, controllable payment intangibles", and "and protection against assertion of claim", and changed "Article 8" to "Articles 8 and 9"; in Subsection (a), added "or a qualifying purchaser of a controllable account, controllable electronic record or controllable payment intangible", and after "Chapter 55, Article 3, 7, 8", added "and 12"; and in Subsection (b), changed "Article 8" to "Articles 8 and 12".
2023 New Mexico Statutes › Chapter 55 - Uniform Commercial Code › Article 9 - Secured Transactions › Part 3 - PERFECTION AND PRIORITY › Subpart 3 - PRIORITY › Section 55-9-332 - Transfer of money; transfer of funds from deposit account. (Effective January 1, 2024.)

(a) A transferee of tangible money takes the money free of a security interest if the transferee receives possession of the money without acting in collusion with the debtor in violating the rights of the secured party.
(b) A transferee of funds from a deposit account takes the funds free of a security interest in the deposit account if the transferee receives the funds without acting in collusion with the debtor in violating the rights of the secured party.
(c) A transferee of electronic money takes the money free of a security interest if the transferee obtains control of the money without acting in collusion with the debtor in violating the rights of the secured party.
History:
1978 Comp., § 55-9-332, enacted by Laws 2001, ch. 139, § 5; 2023, ch. 142, § 73.
ANNOTATIONS
The 2023 amendment,
effective January 1, 2024,
provided that a transferee of electronic money takes the money free of a security interest if the transferee obtains control of the money without acting in collusion with the debtor in violating the rights of the secured party; in Subsection (a), after "security interest", deleted "unless the transferee acts" and added "if the transferee receives possession of the money without acting"; in Subsection (b), after "deposit account", deleted "unless the transferee acts" and added "if the transferee receives the funds without acting"; and added Subsection (c).
2023 New Mexico Statutes › Chapter 55 - Uniform Commercial Code › Article 9 - Secured Transactions › Part 3 - PERFECTION AND PRIORITY › Subpart 3 - PRIORITY › Section 55-9-333 - Priority of certain liens arising by operation of law.

(a) In this section, "possessory lien" means an interest, other than a security interest or an agricultural lien:
(1) that secures payment or performance of an obligation for services or materials furnished with respect to goods by a person in the ordinary course of the person's business;
(2) that is created by statute or rule of law in favor of the person; and
(3) whose effectiveness depends on the person's possession of the goods.
(b) A possessory lien on goods has priority over a security interest in the goods unless the lien is created by a statute that expressly provides otherwise.
History:
1978 Comp., § 55-9-333, enacted by Laws 2001, ch. 139, § 53.
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 9-310.
2. "Possessory Liens." This section governs the relative priority of security interests arising under this article and "possessory liens," i.e., common-law and statutory liens whose effectiveness depends on the lienor's possession of goods with respect to which the lienor provided services or furnished materials in the ordinary course of its business. As under former section 9-310, the possessory lien has priority over a security interest unless the possessory lien is created by a statute that expressly provides otherwise. If the statute creating the possessory lien is silent as to its priority relative to a security interest, this section provides a rule of interpretation that the possessory lien takes priority, even if the statute has been construed judicially to make the possessory lien subordinate.
ANNOTATIONS
Effective dates.
— Laws 2001, ch. 139, § 155 makes the act effective July 1, 2001.
Cross references.
— For liens on personal property, see Chapter 48, Article 3 NMSA 1978.
Law reviews.
— For article, "The Warehouseman vs. the Secured Party: Who Prevails When the Warehouseman's Lien Covers Goods Subject to a Security Interest?" see 8 Nat. Resources J. 331 (1968).
Am. Jur. 2d, A.L.R. and C.J.S. references. —
Lien for repairs to or services in connection with automobile, 62 A.L.R. 1485.
Priority of statutory lien for storage or repairs as against rights of purchasers, attaching creditors or trustees in bankruptcy which arose while car was in possession of owner after accrual of storage or completion of repairs, 100 A.L.R. 80.
Priority as between lien for repairs and the like, and right of seller under conditional sales contract, 36 A.L.R.2d 198.
Priority as between artisan's lien and chattel mortgage, 36 A.L.R.2d 229.
Lien for storage of motor vehicle, 48 A.L.R.2d 894, 85 A.L.R.3d 199.
Priority as between mechanic's lien and purchase money mortgage, 73 A.L.R.2d 1407.
2023 New Mexico Statutes › Chapter 55 - Uniform Commercial Code › Article 9 - Secured Transactions › Part 3 - PERFECTION AND PRIORITY › Subpart 3 - PRIORITY › Section 55-9-337 - Priority of security interests in goods covered by certificate of title.

If, while a security interest in goods is perfected by any method under the law of another jurisdiction, this state issues a certificate of title that does not show that the goods are subject to the security interest or contain a statement that they may be subject to security interests not shown on the certificate:
(1) a buyer of the goods, other than a person in the business of selling goods of that kind, takes free of the security interest if the buyer gives value and receives delivery of the goods after issuance of the certificate and without knowledge of the security interest; and
(2) the security interest is subordinate to a conflicting security interest in the goods that attaches, and is perfected under Subsection (b) of Section 55-9-311 NMSA 1978, after issuance of the certificate and without the conflicting secured party's knowledge of the security interest.
History:
1978 Comp., § 55-9-337, enacted by Laws 2001, ch. 139, § 57.
OFFICIAL COMMENTS
UCC Official Comments by ALI & the NCCUSL. Reproduced with permission of the PEB for the UCC. All rights reserved.
1. Source. Derived from former section 9-103(2)(d).
2. Protection for Buyers and Secured Parties. This section affords protection to certain good-faith purchasers for value who are likely to have relied on a "clean" certificate of title, i.e., one that neither shows that the goods are subject to a particular security interest nor contains a statement that they may be subject to security interests not shown on the certificate. Under this section, a buyer can take free of, and the holder of a conflicting security interest can acquire priority over, a security interest that is perfected by any method under the law of another jurisdiction. The fact that the security interest has been reperfected by possession under section 9-313 does not of itself disqualify the holder of a conflicting security interest from protection under paragraph (2).
ANNOTATIONS
Effective dates.
— Laws 2001, ch. 139, § 155 makes the act effective July 1, 2001.
2023 New Mexico Statutes › Chapter 55 - Uniform Commercial Code › Article 9 - Secured Transactions › Part 3 - PERFECTION AND PRIORITY › Subpart 3 - PRIORITY › Section 55-9-339 - Priority subject to subordination.

Chapter 55, Article 9 NMSA 1978 does not preclude subordination by agreement by a person entitled to priority.
History:
1978 Comp., § 55-9-339, enacted by Laws 2001, ch. 139, § 59.
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 9-316.
2. Subordination by Agreement. The preceding sections deal elaborately with questions of priority. This section makes it entirely clear that a person entitled to priority may effectively agree to subordinate its claim. Only the person entitled to priority may make such an agreement: A person's rights cannot be adversely affected by an agreement to which the person is not a party.
ANNOTATIONS
Effective dates.
— Laws 2001, ch. 139, § 155 makes the act effective July 1, 2001.
Decisions under former 55-9-316 NMSA 1978.
— In light of the similarity of this section and former Section 55-9-316 NMSA 1978, annotations decided under former 55-9-316 NMSA 1978 have been included in the annotations in this section.
A subordination agreement by implication is not recognized;
it must be expressed.
Western Bank v. Matherly
, 1987-NMSC-052, 106 N.M. 31, 738 P.2d 903 (decided under former law).
2023 New Mexico Statutes › Chapter 55 - Uniform Commercial Code › Article 9 - Secured Transactions › Part 3 - PERFECTION AND PRIORITY › Subpart 4 - RIGHTS OF BANK › Section 55-9-340 - Effectiveness of right of recoupment or set-off against deposit account.

(a) Except as otherwise provided in Subsection (c) of this section, a bank with which a deposit account is maintained may exercise any right of recoupment or set-off against a secured party that holds a security interest in the deposit account.
(b) Except as otherwise provided in Subsection (c) of this section, the application of Chapter 55, Article 9 NMSA 1978 to a security interest in a deposit account does not affect a right of recoupment or set-off of the secured party as to a deposit account maintained with the secured party.
(c) The exercise by a bank of a set-off against a deposit account is ineffective against a secured party that holds a security interest in the deposit account which is perfected by control under Paragraph (3) of Subsection (a) of Section 55-9-104 NMSA 1978, if the set-off is based on a claim against the debtor.
History:
1978 Comp., § 55-9-340, enacted by Laws 2001, ch. 139, § 60.
OFFICIAL COMMENTS
UCC Official Comments by ALI & the NCCUSL. Reproduced with permission of the PEB for the UCC. All rights reserved.
1. Source. New; subsection (b) is based on a nonuniform Illinois amendment.
2. Set-off vs. Security Interest. This section resolves the conflict between a security interest in a deposit account and the bank's rights of recoupment and set-off.
Subsection (a) states the general rule and provides that the bank may effectively exercise rights of recoupment and set-off against the secured party. Subsection (c) contains an exception: If the secured party has control under section 9-104(a)(3) (i.e., if it has become the bank's customer), then any set-off exercised by the bank against a debt owed by the debtor (as opposed to a debt owed to the bank by the secured party) is ineffective. The bank may, however, exercise its recoupment rights effectively. This result is consistent with the priority rule in section 9-327(4), under which the security interest of a bank in a deposit account is subordinate to that of a secured party who has control under section 9-104(a)(3).
This section deals with rights of set-off and recoupment that a bank may have under other law. It does not create a right of set-off or recoupment, nor is it intended to override any limitations or restrictions that other law imposes on the exercise of those rights.
3. Preservation of Set-Off Right. Subsection (b) makes clear that a bank may hold both a right of set-off against, and an article 9 security interest in, the same deposit account. By holding a security interest in a deposit account, a bank does not impair any right of set-off it would otherwise enjoy. This subsection does not pertain to accounts evidenced by an instrument (e.g., certain certificates of deposit), which are excluded from the definition of "deposit accounts."
ANNOTATIONS
Effective dates.
— Laws 2001, ch. 139, § 155 makes the act effective July 1, 2001.