2023 New Mexico Statutes › Chapter 55 - Uniform Commercial Code › Article 9 - Secured Transactions › Part 1 - GENERAL PROVISIONS › Subpart 2 - APPLICABILITY OF ARTICLE › Section 55-9-109 - Scope. (Effective January 1, 2024.)

(a) Except as otherwise provided in Subsections (c) and (d) of this section, Chapter 55, Article 9 NMSA 1978 applies to:
(1) a transaction, regardless of its form, that creates a security interest in personal property or fixtures by contract;
(2) an agricultural lien;
(3) a sale of accounts, chattel paper, payment intangibles or promissory notes;
(4) a consignment;
(5) a security interest arising under Section 55-2-401, 55-2-505, Subsection (3) of Section 55-2-711 or Subsection (5) of Section 55-2A-508 NMSA 1978, as provided in Section 55-9-110 NMSA 1978; and
(6) a security interest arising under Section 55-4-210 or 55-5-118 NMSA 1978.
(b) The application of Chapter 55, Article 9 NMSA 1978 to a security interest in a secured obligation is not affected by the fact that the obligation is itself secured by a transaction or interest to which this article does not apply.
(c) Chapter 55, Article 9 NMSA 1978 does not apply to the extent that:
(1) a statute, regulation or treaty of the United States preempts the article;
(2) another statute of this state expressly governs the creation, perfection, priority or enforcement of a security interest created by this state or a governmental unit of this state;
(3) a statute of another state, a foreign country or a governmental unit of another state or a foreign country, other than a statute generally applicable to security interests, expressly governs creation, perfection, priority or enforcement of a security interest created by the state, country or governmental unit; or
(4) the rights of a transferee beneficiary or nominated person under a letter of credit are independent and superior under Section 55-5-114 NMSA 1978.
(d) Chapter 55, Article 9 NMSA 1978 does not apply to:
(1) a landlord's lien, other than an agricultural lien;
(2) a lien, other than an agricultural lien, given by statute or other rule of law for services or materials, but Section 55-9-333 NMSA 1978 applies with respect to priority of the lien;
(3) an assignment of a claim for wages, salary or other compensation of an employee;
(4) a sale of accounts, chattel paper, payment intangibles or promissory notes as part of a sale of the business out of which they arose;
(5) an assignment of accounts, chattel paper, payment intangibles or promissory notes which is for the purpose of collection only;
(6) an assignment of a right to payment under a contract to an assignee that is also obligated to perform under the contract;
(7) an assignment of a single account, payment intangible or promissory note to an assignee in full or partial satisfaction of a preexisting indebtedness;
(8) a transfer of an interest in or an assignment of a claim under a policy of insurance, other than an assignment by or to a health-care provider of a health-care-insurance receivable and any subsequent assignment of the right to payment, but Sections 55-9-315 and 55-9-322 NMSA 1978 apply with respect to proceeds and priorities in proceeds;
(9) an assignment of a right represented by a judgment, other than a judgment taken on a right to payment that was collateral;
(10) a right of recoupment or set-off, but:
(A) Section 55-9-340 NMSA 1978 applies with respect to the effectiveness of rights of recoupment or set-off against deposit accounts; and
(B) Section 55-9-404 NMSA 1978 applies with respect to defenses or claims of an account debtor;
(11) the creation or transfer of an interest in or lien on real property, including a lease or rents thereunder, except to the extent that provision is made for:
(A) liens on real property in Sections 55-9-203 and 55-9-308 NMSA 1978;
(B) fixtures in Section 55-9-334 NMSA 1978;
(C) fixture filings in Sections 55-9-501, 55-9-502, 55-9-512, 55-9-516 and 55-9-519 NMSA 1978; and
(D) security agreements covering personal and real property in Section 55-9-604 NMSA 1978;
(12) an assignment of a claim arising in tort, other than a commercial tort claim, but Sections 55-9-315 and 55-9-322 NMSA 1978 apply with respect to proceeds and priorities in proceeds;
(13) an assignment of a deposit account in a consumer transaction, but Sections 55-9-315 and 55-9-322 NMSA 1978 apply with respect to proceeds and priorities in proceeds; or
(14) a transfer by this state or a governmental unit of this state other than a security interest created pursuant to the Industrial Revenue Bond Act [Chapter 3, Article 32 NMSA 1978], County Industrial Revenue Bond Act [Chapter 4, Article 59 NMSA 1978], Redevelopment Bonding Law [3-60A-26 to 3-60A-46 NMSA 1978], Pollution Control Revenue Bond Act [3-59-1 to 3-59-14 NMSA 1978], County Pollution Control Revenue Bond Act [4-60-1 to 4-60-15 NMSA 1978] or Hospital Equipment Loan Act [Chapter 58, Article 23 NMSA 1978].
History:
1978 Comp., § 55-9-109, enacted by Laws 2001, ch. 139, § 9; 2021, ch. 86, § 2; 2023, ch. 142, § 49.
ANNOTATIONS
The 2023 amendment,
effective January 1, 2024, in Paragraph (d)(14), deleted "public-finance transaction or other transfer by a state or a governmental unit of a state" and added "transfer by this state or a governmental unit of this state other than a security interest created pursuant to the Industrial Revenue Bond Act, County Industrial Revenue Bond Act, Redevelopment Bonding Law, Pollution Control Revenue Bond Act, County Pollution Control Revenue Bond Act or Hospital Equipment Loan Act".