2023 New Mexico Statutes › Chapter 19 - Public Lands › Article 7 - Sale and Lease of Lands › Section 19-7-50 - [Violation of lease or instrument covering state lands; notice; forfeiture for noncompliance with demand.]

The violation of any of the terms, covenants or conditions of any lease or instrument in writing executed by the commissioner covering state lands, or the nonpayment by any lessee of such lands of rental when due, shall, at the option of the commissioner, work a forfeiture of any such lease or instrument in writing after thirty days' notice thereof to the lessee and the holders of any collateral assignments by registered mail, addressed to his or their last known post-office address of record in the state land office; provided, if within said thirty days the lessee or the holders of any collateral assignments shall comply with the demand made in any such notice, cancellation shall not be made.
History:
Laws 1912, ch. 82, § 21; Code 1915, § 5198; Laws 1921, ch. 8, § 1; C.S. 1929, § 132-121; Laws 1939, ch. 64, § 1; 1941 Comp., § 8-847; 1953 Comp., § 7-8-52.
ANNOTATIONS
Bracketed material.
— The bracketed material was inserted by the compiler and is not part of the law.
Cross references.
— For forfeiture for failure to comply with purchase contract,
see
19-7-19 NMSA 1978.
For forfeiture of lease for failure to pay rent,
see
19-7-34 NMSA 1978.
For grounds of forfeiture of agricultural or grazing lease,
see
19-7-35 NMSA 1978.
For forfeiture for defrauding state of royalties,
see
19-8-1 NMSA 1978.
For forfeiture on failure to develop and operate mineral lands in workmanlike manner,
see
19-8-13 NMSA 1978.
For forfeiture of certain mineral leases for violation thereof,
see
19-8-27 NMSA 1978.
For forfeiture on failure to comply with coal lease, see 19-9-13 NMSA 1978.
For cancellation of oil and gas lease,
see
19-10-20 NMSA 1978.
For forfeiture of timberlands purchase contract for failure to observe protective regulations,
see
19-11-4 NMSA 1978.
For forfeiture of lease under Geothermal Resources Act,
see
19-13-23 NMSA 1978.
Constitutionality.
— This section does not violate N.M. Const., art. IV, § 32, or art. XIII, § 2, as there is no obligation or liability of the purchaser owed to the state. Although the state agrees to sell the land, the purchaser does not expressly agree to buy it, but rather, he agrees to make the payments promptly and to pay the taxes; the only remedy expressly reserved by the state for default is cancellation at option of commissioner, with retention of all payments of principal and interest, as liquidated damages.
Vesely v. Ranch Realty Co.
, 1934-NMSC-067, 38 N.M. 480, 35 P.2d 297.
Notice for benefit of lessee.
— Inasmuch as the 30 days' notice of cancellation of contract is for the benefit of the party whose rights the commissioner proposes to terminate, the succeeding commissioner cannot object to the lack of notice.
Vesely v. Ranch Realty Co.
, 1934-NMSC-067, 38 N.M. 480, 35 P.2d 297.
Show cause notice inadequate.
— Notice to show cause why a lease should not be canceled was a notice of contest and not notice of forfeiture required by this section.
Commissioner of Pub. Lands v. Van Bruggen
, 1947-NMSC-009, 51 N.M. 108, 179 P.2d 528.
An offending lessee is entitled to a notice of a claimed violation of the terms of the lease, so he may meet the demand to cease within 30 days in which case no cause exists for cancellation, and where his only warning was an order to show cause why his lease should not be canceled, the notice was inadequate to permit cancellation.
Commissioner of Pub. Lands v. Van Bruggen
, 1947-NMSC-009, 51 N.M. 108, 179 P.2d 528.
Options of commissioner upon default.
— Where lessee had defaulted on payment of notes, commissioner had option to look to lessee and endorsers for payment, and to the security of the lien on improvements, or cancel the lease. Commissioner may insert acceleration clause in lease.
Raynolds v. Hinkle
, 1933-NMSC-060, 37 N.M. 493, 24 P.2d 738.
Grounds for transfer to creditor.
— A creditor of a lessee of state lands demanding transfer to him of the rights of such lessee in default of payment of rentals must show that lessee's default has become fixed as provided in this section.
American Mortg. Co. v. White
, 1930-NMSC-030, 34 N.M. 602, 287 P. 702, distinguished in
Arrow Gas Co. v. Lewis
, 1962-NMSC-145, 71 N.M. 232, 377 P.2d 655.
Collateral security.
— It is not a violation of law to assign a grazing lease obtained from the state land commissioner, as collateral security, so as to render the lease subject to cancellation.
Lusk v. First Nat'l Bank
, 1942-NMSC-056, 46 N.M. 445, 130 P.2d 1032.
Grounds for cancellation.
— Where grazing lease does not have clause providing for cancellation upon notice, except for violation of the conditions, covenants and terms of the lease or nonpayment of rental when due, the commissioner is without authority to cancel. 1944 Op. Att'y Gen. No. 44-4539.