reglab/statecodes huggingface dataset:
2023 New Mexico Statutes › Chapter 55 - Uniform Commercial Code › Article 2A - Leases › Part 2 - FORMATION AND CONSTRUCTION OF LEASE CONTRACT › Section 55-2A-220 - Effect of default on risk of loss.

(1) Where risk of loss is to pass to the lessee and the time of passage is not stated:
(a) if a tender or delivery of goods so fails to conform to the lease contract as to give a right of rejection, the risk of their loss remains with the lessor, or, in the case of a finance lease, the supplier, until cure or acceptance; and
(b) if the lessee rightfully revokes acceptance, he, to the extent of any deficiency in his effective insurance coverage, may treat the risk of loss as having remained with the lessor from the beginning.
(2) Whether or not risk of loss is to pass to the lessee, if the lessee as to conforming goods already identified to a lease contract repudiates or is otherwise in default under the lease contract, the lessor, or, in the case of a finance lease, the supplier, to the extent of any deficiency in his effective insurance coverage may treat the risk of loss as resting on the lessee for a commercially reasonable time.
History:
1978 Comp., § 55-2A-220, enacted by Laws 1992, ch. 114, § 36.
OFFICIAL COMMENTS
UCC Official Comments by ALI & the NCCUSL. Reproduced with permission of the PEB for the UCC. All rights reserved.
Uniform Statutory Source:
— Section 2-510 [55-2-510 NMSA 1978].
Changes:
— Revised to reflect leasing practices and terminology. The rule in Section (1)(b) does not allow the lessee under a finance lease to treat the risk of loss as having remained with the supplier from the beginning. This is appropriate given the limited circumstances under which the lessee under a finance lease is allowed to revoke acceptance. Section 2A-517 and Section 2A-516 [55-2A-517 and 55-2A-516 NMSA 1978, respectively] official comment.
"Conforming". Section 2A-103(1)(d) [55-2A-103 NMSA 1978].
"Delivery". Section 1-201(14) [55-1-201 NMSA 1978].
"Finance lease". Section 2A-103(1)(g) [55-2A-103 NMSA 1978].
"Goods". Section 2A-103(1)(h) [55-2A-103 NMSA 1978].
"Lease contract". Section 2A-103(1)(l) [55-2A-103 NMSA 1978].
"Lessee". Section 2A-103(1)(n) [55-2A-103 NMSA 1978].
"Lessor". Section 2A-103(1)(p) [55-2A-103 NMSA 1978].
"Reasonable time". Section 1-204(1) and (2) [55-1-204 NMSA 1978].
"Rights". Section 1-201(36) [55-1-201 NMSA 1978].
"Supplier". Section 2A-103(1)(x) [55-2A-103 NMSA 1978].
ANNOTATIONS
Effective dates.
— Laws 1992, ch. 114, § 238 made Laws 1992, ch. 114, § 36 effective July 1, 1992.
2023 New Mexico Statutes › Chapter 55 - Uniform Commercial Code › Article 2A - Leases › Part 2 - FORMATION AND CONSTRUCTION OF LEASE CONTRACT › Section 55-2A-221 - Casualty to identified goods.

If a lease contract requires goods identified when the lease contract is made, and the goods suffer casualty without fault of the lessee, the lessor or the supplier before delivery, or the goods suffer casualty before risk of loss passes to the lessee pursuant to the lease agreement or Section 55-2A-219 NMSA 1978, then:
(a) if the loss is total, the lease contract is avoided; and
(b) if the loss is partial or the goods have so deteriorated as to no longer conform to the lease contract, the lessee may nevertheless demand inspection and at his option either treat the lease contract as avoided or, except in a finance lease that is not a consumer lease, accept the goods with due allowance from the rent payable for the balance of the lease term for the deterioration or the deficiency in quantity but without further right against the lessor.
History:
1978 Comp., § 55-2A-221, enacted by Laws 1992, ch. 114, § 37.
OFFICIAL COMMENTS
UCC Official Comments by ALI & the NCCUSL. Reproduced with permission of the PEB for the UCC. All rights reserved.
Uniform Statutory Source:
Section 2-613 [55-2-613 NMSA 1978].
Changes:
Revised to reflect leasing practices and terminology.
Purpose:
— Due to the vagaries of determining the amount of due allowance (Section 2-613(b)) [55-2-613 NMSA 1978], no attempt was made in subsection (b) to treat a problem unique to lease contracts and installment sales contracts: determining how to recapture the allowance,
e.g.
, application to the first or last rent payments or allocation, pro rata, to all rent payments.
Cross References:
— Section 2-613 [55-2-613 NMSA 1978].
"Conforming". Section 2A-103(1)(d) [55-2A-103 NMSA 1978].
"Consumer lease". Section 2A-103(1)(e) [55-2A-103 NMSA 1978].
"Delivery". Section 1-201(14) [55-1-201 NMSA 1978].
"Fault". Section 2A-103(1)(f) [55-2A-103 NMSA 1978].
"Finance lease". Section 2A-103(1)(g) [55-2A-103 NMSA 1978].
"Goods". Section 2A-103(1)(h) [55-2A-103 NMSA 1978].
"Lease". Section 2A-103(1)(j) [55-2A-103 NMSA 1978].
"Lease agreement". Section 2A-103(1)(k) [55-2A-103 NMSA 1978].
"Lease contract". Section 2A-103(1)(l) [55-2A-103 NMSA 1978].
"Lessee". Section 2A-103(1)(n) [55-2A-103 NMSA 1978].
"Lessor". Section 2A-103(1)(p) [55-2A-103 NMSA 1978].
"Rights". Section 1-201(36) [55-1-201 NMSA 1978].
"Supplier". Section 2A-103(1)(x) [55-2A-103 NMSA 1978].
ANNOTATIONS
Effective dates.
— Laws 1992, ch. 114, § 238 made Laws 1992, ch. 114, § 37 effective July 1, 1992.
2023 New Mexico Statutes › Chapter 55 - Uniform Commercial Code › Article 2A - Leases › Part 3 - EFFECT OF LEASE CONTRACT › Section 55-2A-302 - Title to and possession of goods.

Except as otherwise provided in this article, each provision of this article applies whether the lessor or a third party has title to the goods, and whether the lessor, the lessee or a third party has possession of the goods, notwithstanding any statute or rule of law that possession or the absence of possession is fraudulent.
History:
1978 Comp., § 55-2A-302, enacted by Laws 1992, ch. 114, § 39.
OFFICIAL COMMENTS
UCC Official Comments by ALI & the NCCUSL. Reproduced with permission of the PEB for the UCC. All rights reserved.
Uniform Statutory Source:
— Section 9-202 [55-9-202 NMSA 1978].
Changes:
— Section 9-202 [55-9-202 NMSA 1978] was modified to reflect leasing terminology and to clarify the law of leases with respect to fraudulent conveyances or transfers.
Purposes:
— The separation of ownership and possession of goods between the lessor and the lessee (or a third party) has created problems under certain fraudulent conveyance statutes.
See, e.g., In re Ludlum Enters.
, 510 F.2d 996 (5th Cir. 1975);
Suburbia Fed. Sav. & Loan Ass'n v. Bel-Air Conditioning Co.
, 385 So.2d 1151 (Fla.Dist.Ct.App.1980). This section provides, among other things, that separation of ownership and possession per se does not affect the enforceability of the lease contract. Sections 2A-301 and 2A-308 [55-2A-301 and 55-2A-308 NMSA 1978, respectively].
Cross References:
— Sections 2A-301, 2A-308 and 9-202 [55-2A-301, 55-2A-308 and 55-9-202 NMSA 1978, respectively].
"Goods". Section 2A-103(1)(h) [55-2A-103 NMSA 1978].
"Lessee". Section 2A-103(1)(n) [55-2A-103 NMSA 1978].
"Lessor". Section 2A-103(1)(p) [55-2A-103 NMSA 1978].
ANNOTATIONS
Effective dates.
— Laws 1992, ch. 114, § 238 made Laws 1992, ch. 114, § 38 effective July 1, 1992.
2023 New Mexico Statutes › Chapter 55 - Uniform Commercial Code › Article 2A - Leases › Part 3 - EFFECT OF LEASE CONTRACT › Section 55-2A-306 - Priority of certain liens arising by operation of law.

If a person in the ordinary course of his business furnishes services or materials with respect to goods subject to a lease contract, a lien upon those goods in the possession of that person given by statute or rule of law for those materials or services takes priority over any interest of the lessor or lessee under the lease contract or this article unless the lien is created by statute and the statute provides otherwise or unless the lien is created by rule of law and the rule of law provides otherwise.
History:
1978 Comp., § 55-2A-306, enacted by Laws 1992, ch. 114, § 43.
OFFICIAL COMMENTS
UCC Official Comments by ALI & the NCCUSL. Reproduced with permission of the PEB for the UCC. All rights reserved.
Uniform Statutory Source:
— Section 9-310 [55-9-310 NMSA 1978].
Changes:
— The approach reflected in the provisions of Section 9-310 [55-9-310 NMSA 1978] was included, but revised to conform to leasing terminology and to expand the exception to the special priority granted to protected liens to cover liens created by rule of law as well as those created by statute.
Purposes:
— This section should be interpreted to allow a qualified lessor or a qualified lessee to be the competing lienholder if the statute or rule of law so provides. The reference to statute includes applicable regulations and cases; these sources must be reviewed in resolving a priority dispute under this section.
Cross Reference:
— Section 9-310 [55-9-310 NMSA 1978].
"Goods". Section 2A-103(1)(h) [55-2A-103 NMSA 1978].
"Lease contract". Section 2A-103(1)(l) [55-2A-103 NMSA 1978].
"Lessee". Section 2A-103(1)(n) [55-2A-103 NMSA 1978].
"Lessor". Section 2A-103(1)(p) [55-2A-103 NMSA 1978].
"Lien". Section 2A-103(1)(r) [55-2A-103 NMSA 1978].
"Person". Section 1-201(30) [55-1-201 NMSA 1978].
ANNOTATIONS
Effective dates.
— Laws 1992, ch. 114, § 238 made Laws 1992, ch. 114, § 43 effective July 1, 1992.
2023 New Mexico Statutes › Chapter 55 - Uniform Commercial Code › Article 2A - Leases › Part 3 - EFFECT OF LEASE CONTRACT › Section 55-2A-311 - Priority subject to subordination.

Nothing in this article prevents subordination by agreement by any person entitled to priority.
History:
1978 Comp., § 55-2A-311, enacted by Laws 1992, ch. 114, § 48.
OFFICIAL COMMENTS
UCC Official Comments by ALI & the NCCUSL. Reproduced with permission of the PEB for the UCC. All rights reserved.
Uniform Statutory Source:
— Section 9-316 [55-9-316 NMSA 1978].
Purposes:
— The several preceding sections deal with questions of priority. This section is inserted to make it entirely clear that a person entitled to priority may effectively agree to subordinate the claim. Only the person entitled to priority may make such an agreement: the rights of such a person cannot be adversely affected by an agreement to which that person is not a party.
Cross References:
— Sections 1-102 and 2A-304 through 2A-310 [55-1-102 and 55-2A-304 to 55-2A-310 NMSA 1978, respectively].
"Agreement". Section 1-201(3) [55-1-201 NMSA 1978].
"Person". Section 1-201(30) [55-1-201 NMSA 1978].
ANNOTATIONS
Effective dates.
— Laws 1992, ch. 114, § 238 made Laws 1992, ch. 114, § 48 effective July 1, 1992.
2023 New Mexico Statutes › Chapter 55 - Uniform Commercial Code › Article 2A - Leases › Part 4 - PERFORMANCE OF LEASE CONTRACT: REPUDIATED, SUBSTITUTED AND EXCUSED › Section 55-2A-401 - Insecurity; adequate assurance of performance.

(1) A lease contract imposes an obligation on each party that the other's expectation of receiving due performance will not be impaired.
(2) If reasonable grounds for insecurity arise with respect to the performance of either party, the insecure party may demand in writing adequate assurance of due performance. Until the insecure party receives that assurance, if commercially reasonable the insecure party may suspend any performance for which he has not already received the agreed return.
(3) A repudiation of the lease contract occurs if assurance of due performance adequate under the circumstances of the particular case is not provided to the insecure party within a reasonable time, not to exceed thirty days after receipt of a demand by the other party.
(4) Between merchants, the reasonableness of grounds for insecurity and the adequacy of any assurance offered must be determined according to commercial standards.
(5) Acceptance of any nonconforming delivery or payment does not prejudice the aggrieved party's right to demand adequate assurance of future performance.
History:
1978 Comp., § 55-2A-401, enacted by Laws 1992, ch. 114, § 49.
OFFICIAL COMMENTS
UCC Official Comments by ALI & the NCCUSL. Reproduced with permission of the PEB for the UCC. All rights reserved.
Uniform Statutory Source:
— Section 2-609 [55-2-609 NMSA 1978].
Changes:
— Revised to reflect leasing practices and terminology. Note that in the analogue to Subsection (3) (Section 2-609(4)) [55-2-609 NMSA 1978], the adjective "justified" modifies demand. The adjective was deleted here as unnecessary, implying no substantive change.
As to the use of a record other than a writing and communications that are not written,
see
Section 2A-103 [55-2A-103 NMSA 1978], Comment (g).
"Aggrieved party". Section 1-201(2) [55-1-201 NMSA 1978].
"Agreed". Section 1-201(3) [55-1-201 NMSA 1978].
"Between merchants". Section 2-104(3) [55-2-104 NMSA 1978].
"Conforming". Section 2A-103(1)(d) [55-2A-103 NMSA 1978].
"Delivery". Section 1-201(14) [55-1-201 NMSA 1978].
"Lease contract". Section 2A-103(1)(l) [55-2A-103 NMSA 1978].
"Party". Section 1-201(29) [55-1-201 NMSA 1978].
"Reasonable time". Section 1-204(1) and (2) [55-1-204 NMSA 1978].
"Receipt". Section 2-103(1)(c) [55-2-103 NMSA 1978].
"Rights". Section 1-201(36) [55-1-201 NMSA 1978].
"Writing". Section 1-201(46) [55-1-201 NMSA 1978].
ANNOTATIONS
Effective dates.
— Laws 1992, ch. 114, § 238 made Laws 1992, ch. 114, § 49 effective July 1, 1992.
2023 New Mexico Statutes › Chapter 55 - Uniform Commercial Code › Article 2A - Leases › Part 4 - PERFORMANCE OF LEASE CONTRACT: REPUDIATED, SUBSTITUTED AND EXCUSED › Section 55-2A-402 - Anticipatory repudiation.

If either party repudiates a lease contract with respect to a performance not yet due under the lease contract, the loss of which performance will substantially impair the value of the lease contract to the other, the aggrieved party may:
(a) for a commercially reasonable time, await retraction of repudiation and performance by the repudiating party;
(b) make demand pursuant to Section 55-2A-401 NMSA 1978 and await assurance of future performance adequate under the circumstances of the particular case; or
(c) resort to any right or remedy upon default under the lease contract or this article, even though the aggrieved party has notified the repudiating party that the aggrieved party would await the repudiating party's performance and assurance and has urged retraction. In addition, whether or not the aggrieved party is pursuing one of the foregoing remedies, the aggrieved party may suspend performance or, if the aggrieved party is the lessor, proceed in accordance with the provisions of this article on the lessor's right to identify goods to the lease contract notwithstanding default or to salvage unfinished goods (Section 55-2A-524 NMSA 1978).
History:
1978 Comp., § 55-2A-402, enacted by Laws 1992, ch. 114, § 50.
OFFICIAL COMMENTS
UCC Official Comments by ALI & the NCCUSL. Reproduced with permission of the PEB for the UCC. All rights reserved.
Uniform Statutory Source:
— Section 2-610 [55-2-610 NMSA 1978].
Changes:
— Revised to reflect leasing practices and terminology.
"Aggrieved party". Section 1-201(2) [55-1-201 NMSA 1978].
"Goods". Section 2A-103(1)(h) [55-2A-103 NMSA 1978].
"Lease contract". Section 2A-103(1)(l) [55-2A-103 NMSA 1978].
"Lessor". Section 2A-103(1)(p) [55-2A-103 NMSA 1978].
"Notifies". Section 1-201(26) [55-1-201 NMSA 1978].
"Party". Section 1-201(29) [55-1-201 NMSA 1978].
"Reasonable time". Section 1-204(1) and (2) [55-1-204 NMSA 1978].
"Remedy". Section 1-201(34) [55-1-201 NMSA 1978].
"Rights". Section 1-201(36) [55-1-201 NMSA 1978].
"Value". Section 1-201(44) [55-1-201 NMSA 1978].
ANNOTATIONS
Effective dates.
— Laws 1992, ch. 114, § 238 made Laws 1992, ch. 114, § 50 effective July 1, 1992.
2023 New Mexico Statutes › Chapter 55 - Uniform Commercial Code › Article 2A - Leases › Part 4 - PERFORMANCE OF LEASE CONTRACT: REPUDIATED, SUBSTITUTED AND EXCUSED › Section 55-2A-403 - Retraction of anticipatory repudiation.

(1) Until the repudiating party's next performance is due, the repudiating party can retract the repudiation unless, since the repudiation, the aggrieved party has cancelled the lease contract or materially changed the aggrieved party's position or otherwise indicated that the aggrieved party considers the repudiation final.
(2) Retraction may be by any method that clearly indicates to the aggrieved party that the repudiating party intends to perform under the lease contract and includes any assurance demanded under Section 55-2A-401 NMSA 1978.
(3) Retraction reinstates a repudiating party's rights under a lease contract with due excuse and allowance to the aggrieved party for any delay occasioned by the repudiation.
History:
1978 Comp., § 55-2A-403, enacted by Laws 1992, ch. 114, § 51.
OFFICIAL COMMENTS
UCC Official Comments by ALI & the NCCUSL. Reproduced with permission of the PEB for the UCC. All rights reserved.
Uniform Statutory Source:
— Section 2-611 [55-2-611 NMSA 1978].
Changes:
— Revised to reflect leasing practices and terminology. Note that in the analogue to subsection (2) (Section 2-611(2)) [55-2-611 NMSA 1978] the adjective "justifiably" modifies demanded. The adjective was deleted here (as it was in Section 2A-401) [55-2A-401 NMSA 1978] as unnecessary, implying no substantive change.
"Aggrieved party". Section 1-201(2) [55-1-201 NMSA 1978].
"Cancellation". Section 2A-103(1)(b) [55-2A-103 NMSA 1978].
"Lease contract". Section 2A-103(1)(l) [55-2A-103 NMSA 1978].
"Party". Section 1-201(29) [55-1-201 NMSA 1978].
"Rights". Section 1-201(36) [55-1-201 NMSA 1978].
ANNOTATIONS
Effective dates.
— Laws 1992, ch. 114, § 238 made Laws 1992, ch. 114, § 51 effective July 1, 1992.
2023 New Mexico Statutes › Chapter 55 - Uniform Commercial Code › Article 2A - Leases › Part 4 - PERFORMANCE OF LEASE CONTRACT: REPUDIATED, SUBSTITUTED AND EXCUSED › Section 55-2A-404 - Substituted performance.

(1) If without fault of the lessee, the lessor and the supplier, the agreed berthing, loading or unloading facilities fail or the agreed type of carrier becomes unavailable or the agreed manner of delivery otherwise becomes commercially impracticable, but a commercially reasonable substitute is available, the substitute performance must be tendered and accepted.
(2) If the agreed means or manner of payment fails because of domestic or foreign governmental regulation:
(a) the lessor may withhold or stop delivery or cause the supplier to withhold or stop delivery unless the lessee provides a means or manner of payment that is commercially a substantial equivalent; and
(b) if delivery has already been taken, payment by the means or in the manner provided by the regulation discharges the lessee's obligation unless the regulation is discriminatory, oppressive or predatory.
History:
1978 Comp., § 55-2A-404, enacted by Laws 1992, ch. 114, § 52.
OFFICIAL COMMENTS
UCC Official Comments by ALI & the NCCUSL. Reproduced with permission of the PEB for the UCC. All rights reserved.
Uniform Statutory Source:
— Section 2-614 [55-2-614 NMSA 1978].
Changes:
— Revised to reflect leasing practices and terminology.
"Agreed". Section 1-201(3) [55-1-201 NMSA 1978].
"Delivery". Section 1-201(14) [55-1-201 NMSA 1978].
"Fault". Section 2A-103(1)(f) [55-2A-103 NMSA 1978].
"Lessee". Section 2A-103(1)(n) [55-2A-103 NMSA 1978].
"Lessor". Section 2A-103(1)(p) [55-2A-103 NMSA 1978].
"Supplier". Section 2A-103(1)(x) [55-2A-103 NMSA 1978].
ANNOTATIONS
Effective dates.
— Laws 1992, ch. 114, § 238 made Laws 1992, ch. 114, § 52 effective July 1, 1992.
2023 New Mexico Statutes › Chapter 55 - Uniform Commercial Code › Article 2A - Leases › Part 4 - PERFORMANCE OF LEASE CONTRACT: REPUDIATED, SUBSTITUTED AND EXCUSED › Section 55-2A-405 - Excused performance.

Subject to Section 55-2A-404 NMSA 1978 on substituted performance, the following rules apply:
(a) delay in delivery or nondelivery in whole or in part by a lessor or a supplier who complies with Subsections (b) and (c) is not a default under the lease contract if performance as agreed has been made impracticable by the occurrence of a contingency the nonoccurrence of which was a basic assumption on which the lease contract was made or by compliance in good faith with any applicable foreign or domestic governmental regulation or order, whether or not the regulation or order later proves to be invalid;
(b) if the causes mentioned in Subsection (a) affect only part of the lessor's or the supplier's capacity to perform, he shall allocate production and deliveries among his customers but at his option may include regular customers not then under contract for sale or lease as well as his own requirements for further manufacture; he may so allocate in any manner that is fair and reasonable; and
(c) the lessor seasonably shall notify the lessee and in the case of a finance lease the supplier seasonably shall notify the lessor and the lessee, if known, that there will be delay or nondelivery and, if allocation is required under Subsection (b), of the estimated quota thus made available for the lessee.
History:
1978 Comp., § 55-2A-405, enacted by Laws 1992, ch. 114, § 53.
OFFICIAL COMMENTS
UCC Official Comments by ALI & the NCCUSL. Reproduced with permission of the PEB for the UCC. All rights reserved.
Uniform Statutory Source:
— Section 2-615 [55-2-615 NMSA 1978].
Changes:
— Revised to reflect leasing practices and terminology.
"Agreed". Section 1-201(3) [55-1-201 NMSA 1978].
"Contract". Section 1-201(11) [55-1-201 NMSA 1978].
"Delivery". Section 1-201(14) [55-1-201 NMSA 1978].
"Finance lease". Section 2A-103(1)(g) [55-2A-103 NMSA 1978].
"Good faith". Sections 1-201(19) and 2-103(1)(b) [55-1-201 and 55-2-103 NMSA 1978, respectively].
"Knows". Section 1-201(25) [55-1-201 NMSA 1978].
"Lease". Section 2A-103(1)(j) [55-2A-103 NMSA 1978].
"Lease contract". Section 2A-103(1)(l) [55-2A-103 NMSA 1978].
"Lessee". Section 2A-103(1)(n) [55-2A-103 NMSA 1978].
"Lessor". Section 2A-103(1)(p) [55-2A-103 NMSA 1978].
"Notifies". Section 1-201(26) [55-1-201 NMSA 1978].
"Sale". Section 2-106(1) [55-2-106 NMSA 1978].
"Seasonably". Section 1-204(3) [55-1-204 NMSA 1978].
"Supplier". Section 2A-103(1)(x) [55-2A-103 NMSA 1978].
ANNOTATIONS
Effective dates.
— Laws 1992, ch. 114, § 238 made Laws 1992, ch. 114, § 53 effective July 1, 1992.
2023 New Mexico Statutes › Chapter 55 - Uniform Commercial Code › Article 2A - Leases › Part 5 - DEFAULT › Section 55-2A-502 - Notice after default.

Except as otherwise provided in this article or the lease agreement, the lessor or lessee in default under the lease contract is not entitled to notice of default or notice of enforcement from the other party to the lease agreement.
History:
1978 Comp., § 55-2A-502, enacted by Laws 1992, ch. 114, § 57.
OFFICIAL COMMENTS
UCC Official Comments by ALI & the NCCUSL. Reproduced with permission of the PEB for the UCC. All rights reserved.
Uniform Statutory Source:
— None.
Purposes:
— This section makes clear that absent agreement to the contrary or provision in this Article to the contrary, e.g., Section 2A-516(3)(a) [55-2A-516 NMSA 1978], the party in default is not entitled to notice of default or enforcement. While a review of Part 5 of Article 9 leads to the same conclusion with respect to giving notice of default to the debtor, it is never stated. Although Article 9 requires notice of disposition and strict foreclosure, the different scheme of lessors' and lessees' rights and remedies developed under the common law, and codified by this Article, generally does not require notice of enforcement; furthermore, such notice is not mandated by due process requirements. However, certain sections of this Article do require notice. E.g., Section 2A-517(2) [55-2A-517 NMSA 1978].
Cross References:
— Sections 2A-516(3)(a), 2A-517(2), and Article 9, esp. Part 5 [55-2A-516 and 55-2A-517 NMSA 1978].
"Lease agreement". Section 2A-103(1)(k) [55-2A-103 NMSA 1978].
"Lease contract". Section 2A-103(1)(l) [55-2A-103 NMSA 1978].
"Lessee". Section 2A-103(1)(n) [55-2A-103 NMSA 1978].
"Lessor". Section 2A-103(1)(p) [55-2A-103 NMSA 1978].
"Notice". Section 1-201(25) [55-1-201 NMSA 1978].
"Party". Section 1-201(29) [55-1-201 NMSA 1978].
ANNOTATIONS
Effective dates.
— Laws 1992, ch. 114, § 238 made Laws 1992, ch. 114, § 57 effective July 1, 1992.
2023 New Mexico Statutes › Chapter 55 - Uniform Commercial Code › Article 2A - Leases › Part 5 - DEFAULT › Section 55-2A-505 - Cancellation and termination and effect of cancellation, termination, rescission or fraud on rights and remedies.

(1) On cancellation of the lease contract, all obligations that are still executory on both sides are discharged, but any right based on prior default or performance survives, and the cancelling party also retains any remedy for default of the whole lease contract or any unperformed balance.
(2) On termination of the lease contract, all obligations that are still executory on both sides are discharged but any right based on prior default or performance survives.
(3) Unless the contrary intention clearly appears, expressions of "cancellation", "recission [rescission]" or the like of the lease contract may not be construed as a renunciation or discharge of any claim in damages for an antecedent default.
(4) Rights and remedies for material misrepresentation or fraud include all rights and remedies available under this article for default.
(5) Neither rescission nor a claim for rescission of the lease contract nor rejection or return of the goods may bar or be deemed inconsistent with a claim for damages or other right or remedy.
History:
1978 Comp., § 55-2A-505, enacted by Laws 1992, ch. 114, § 60.
OFFICIAL COMMENTS
UCC Official Comments by ALI & the NCCUSL. Reproduced with permission of the PEB for the UCC. All rights reserved.
Uniform Statutory Source:
— Sections 2-106(3) and (4), 2-720 and 2-721 [55-2-106, 55-2-720 and 55-2-721 NMSA 1978, respectively].
Changes: — Revised to reflect leasing practices and terminology.
"Cancellation". Section 2A-103(1)(b) [55-2A-103 NMSA 1978].
"Goods". Section 2A-103(1)(h) [55-2A-103 NMSA 1978].
"Lease contract". Section 2A-103(1)(l) [55-2A-103 NMSA 1978].
"Party". Section 1-201(29) [55-1-201 NMSA 1978].
"Remedy". Section 1-201(34) [55-1-201 NMSA 1978].
"Rights". Section 1-201(36) [55-1-201 NMSA 1978].
"Termination". Section 2A-103(1)(z) [55-2A-103 NMSA 1978].
ANNOTATIONS
Effective dates.
— Laws 1992, ch. 114, § 238 made Laws 1992, ch. 114, § 60 effective July 1, 1992.
2023 New Mexico Statutes › Chapter 55 - Uniform Commercial Code › Article 2A - Leases › Part 5 - DEFAULT › Section 55-2A-506 - Statute of limitations.

(1) An action for default under a lease contract, including breach of warranty or indemnity, must be commenced within four years after the cause of action accrued. By the original lease contract the parties may reduce the period of limitation to not less than one year.
(2) A cause of action for default accrues when the act or omission on which the default or breach of warranty is based is or should have been discovered by the aggrieved party, or when the default occurs, whichever is later. A cause of action for indemnity accrues when the act or omission on which the claim for indemnity is based is or should have been discovered by the indemnified party, whichever is later.
(3) If an action commenced within the time limited by Subsection (1) is so terminated as to leave available a remedy by another action for the same default or breach of warranty or indemnity, the other action may be commenced after the expiration of the time limited and within six months after the termination of the first action unless the termination resulted from voluntary discontinuance or from dismissal for failure or neglect to prosecute.
(4) This section does not alter the law on tolling of the statute of limitations nor does it apply to causes of action that have accrued before this article becomes effective.
History:
1978 Comp., § 55-2A-506, enacted by Laws 1992, ch. 114, § 61.
OFFICIAL COMMENTS
UCC Official Comments by ALI & the NCCUSL. Reproduced with permission of the PEB for the UCC. All rights reserved.
Uniform Statutory Source:
— Section 2-725 [55-2-725 NMSA 1978].
Changes:
— Substantially rewritten.
Purposes:
— Subsection (1) does not incorporate the limitation found in Section 2-725(1) [55-2-725 NMSA 1978] prohibiting the parties from extending the period of limitation. Breach of warranty and indemnity claims often arise in a lease transaction; with the passage of time such claims often diminish or are eliminated. To encourage the parties to commence litigation under these circumstances makes little sense.
Subsection (2) states two rules for determining when a cause of action accrues. With respect to default, the rule of Section 2-725(2) [55-2-725 NMSA 1978] is not incorporated in favor of a more liberal rule of the later of the date when the default occurs or when the act or omission on which it is based is or should have been discovered. With respect to indemnity, a similarly liberal rule is adopted.
Cross References:
— Sections 2-725(1) and 2-725(2) [55-2-725 NMSA 1978].
"Action". Section 1-201(1) [55-1-201 NMSA 1978].
"Aggrieved party". Section 1-201(2) [55-1-201 NMSA 1978].
"Lease contract". Section 2A-103(1)(l) [55-2A-103 NMSA 1978].
"Party". Section 1-201(29) [55-1-201 NMSA 1978].
"Remedy". Section 1-201(34) [55-1-201 NMSA 1978].
"Termination". Section 2A-103(1)(z) [55-2A-103 NMSA 1978].
ANNOTATIONS
Effective dates.
— Laws 1992, ch. 114, § 238 made Laws 1992, ch. 114, § 61 effective July 1, 1992.
2023 New Mexico Statutes › Chapter 55 - Uniform Commercial Code › Article 2A - Leases › Part 5 - DEFAULT › Section 55-2A-507 - Proof of market rent; time and place.

(1) Damages based on market rent (Section 55-2A-519 or 55-2A-528 NMSA 1978) are determined according to the rent for the use of the goods concerned for a lease term identical to the remaining lease term of the original lease agreement and prevailing at the times specified in Sections 55-2A-519 and 55-2A-528 NMSA 1978.
(2) If evidence of rent for the use of the goods concerned for a lease term identical to the remaining lease term of the original lease agreement and prevailing at the times or places described in this article is not readily available, the rent prevailing within any reasonable time before or after the time described or at any other place or for a different lease term which in commercial judgment or under usage of trade would serve as a reasonable substitute for the one described may be used, making any proper allowance for the difference, including the cost of transporting the goods to or from the other place.
(3) Evidence of a relevant rent prevailing at a time or place or for a lease term other than the one described in this article offered by one party is not admissible unless and until he has given the other party notice the court finds sufficient to prevent unfair surprise.
(4) If the prevailing rent or value of any goods regularly leased in any established market is in issue, reports in official publications or trade journals or in newspapers or periodicals of general circulation published as the reports of that market are admissible in evidence. The circumstances of the preparation of the report may be shown to affect its weight but not its admissibility.
History:
1978 Comp., § 55-2A-507, enacted by Laws 1992, ch. 114, § 62.
OFFICIAL COMMENTS
UCC Official Comments by ALI & the NCCUSL. Reproduced with permission of the PEB for the UCC. All rights reserved.
Uniform Statutory Source:
— Sections 2-723 and 2-724 [55-2-723 and 55-2-724 NMSA 1978, respectively].
Changes:
— Revised to reflect leasing practices and terminology. Sections 2A-519 and 2A-528 [55-2A-519 and 55-2A-528 NMSA 1978, respectively] specify the times as of which market rent is to be determined.
"Goods". Section 2A-103(1)(h) [55-2A-103 NMSA 1978].
"Lease". Section 2A-103(1)(j) [55-2A-103 NMSA 1978].
"Lease agreement". Section 2A-103(1)(k) [55-2A-103 NMSA 1978].
"Notice". Section 1-201(25) [55-1-201 NMSA 1978].
"Party". Section 1-201(29) [55-1-201 NMSA 1978].
"Reasonable time". Section 1-204(1) and (2) [55-1-204 NMSA 1978].
"Usage of trade". Section 1-205 [55-1-205 NMSA 1978].
"Value". Section 1-201(44) [55-1-201 NMSA 1978].
ANNOTATIONS
Effective dates.
— Laws 1992, ch. 114, § 238 made Laws 1992, ch. 114, § 62 effective July 1, 1992.
2023 New Mexico Statutes › Chapter 55 - Uniform Commercial Code › Article 2A - Leases › Part 5 - DEFAULT › Section 55-2A-509 - Lessee's rights on improper delivery; rightful rejection.

(1) Subject to the provisions of Section 2A-510 on default in installment lease contracts, if the goods or the tender or delivery fail in any respect to conform to the lease contract, the lessee may reject or accept the goods or accept any commercial unit or units and reject the rest of the goods.
(2) Rejection of goods is ineffective unless it is within a reasonable time after tender or delivery of the goods and the lessee seasonably notifies the lessor.
History:
1978 Comp., § 55-2A-509, enacted by Laws 1992, ch. 114, § 64.
OFFICIAL COMMENTS
UCC Official Comments by ALI & the NCCUSL. Reproduced with permission of the PEB for the UCC. All rights reserved.
Uniform Statutory Source:
— Sections 2-601 and 2-602(1) [55-2-601 and 55-2-602 NMSA 1978, respectively].
Changes:
— Revised to reflect leasing practices and terminology.
"Commercial unit". Section 2A-103(1)(c) [55-2A-103 NMSA 1978].
"Conforming". Section 2A-103(1)(d) [55-2A-103 NMSA 1978].
"Delivery". Section 1-201(14) [55-1-201 NMSA 1978].
"Goods". Section 2A-103(1)(h) [55-2A-103 NMSA 1978].
"Installment lease contract". Section 2A-103(1)(i) [55-2A-103 NMSA 1978].
"Lease contract". Section 2A-103(1)(l) [55-2A-103 NMSA 1978].
"Lessee". Section 2A-103(1)(n) [55-2A-103 NMSA 1978].
"Lessor". Section 2A-103(1)(p) [55-2A-103 NMSA 1978].
"Notifies". Section 1-201(26) [55-1-201 NMSA 1978].
"Reasonable time". Section 1-204(1) and (2) [55-1-204 NMSA 1978].
"Rights". Section 1-201(36) [55-1-201 NMSA 1978].
"Seasonably". Section 1-204(3) [55-1-204 NMSA 1978].
ANNOTATIONS
Effective dates.
— Laws 1992, ch. 114, § 238 made Laws 1992, ch. 114, § 64 effective July 1, 1992.
2023 New Mexico Statutes › Chapter 55 - Uniform Commercial Code › Article 2A - Leases › Part 5 - DEFAULT › Section 55-2A-510 - Installment lease contracts; rejection and default.

(1) Under an installment lease contract a lessee may reject any delivery that is nonconforming if the nonconformity substantially impairs the value of that delivery and cannot be cured or the nonconformity is a defect in the required documents; but if the nonconformity does not fall within Subsection (2) and the lessor or the supplier gives adequate assurance of its cure, the lessee must accept that delivery.
(2) Whenever nonconformity or default with respect to one or more deliveries substantially impairs the value of the installment lease contract as a whole there is a default with respect to the whole. But, the aggrieved party reinstates the installment lease contract as a whole if the aggrieved party accepts a nonconforming delivery without seasonably notifying of cancellation or brings an action with respect only to past deliveries or demands performance as to future deliveries.
History:
1978 Comp., § 55-2A-510, enacted by Laws 1992, ch. 114, § 65.
OFFICIAL COMMENTS
UCC Official Comments by ALI & the NCCUSL. Reproduced with permission of the PEB for the UCC. All rights reserved.
Uniform Statutory Source:
— Section 2-612 [55-2-612 NMSA 1978].
Changes:
— Revised to reflect leasing practices and terminology.
"Action". Section 1-201(1) [55-1-201 NMSA 1978].
"Aggrieved party". Section 1-201(2) [55-1-201 NMSA 1978].
"Cancellation". Section 2A-103(1)(b) [55-2A-103 NMSA 1978].
"Conforming". Section 2A-103(1)(d) [55-2A-103 NMSA 1978].
"Delivery". Section 1-201(14) [55-1-201 NMSA 1978].
"Installment lease contract". Section 2A-103(1)(i) [55-2A-103 NMSA 1978].
"Lessee". Section 2A-103(1)(n) [55-2A-103 NMSA 1978].
"Lessor". Section 2A-103(1)(p) [55-2A-103 NMSA 1978].
"Notifies". Section 1-201(26) [55-1-201 NMSA 1978].
"Seasonably"'. Section 1-204(3) [55-1-204 NMSA 1978].
"Supplier". Section 2A-103(1)(x) [55-2A-103 NMSA 1978].
"Value". Section 1-201(44) [55-1-201 NMSA 1978].
ANNOTATIONS
Effective dates.
— Laws 1992, ch. 114, § 238 made Laws 1992, ch. 114, § 65 effective July 1, 1992.
2023 New Mexico Statutes › Chapter 55 - Uniform Commercial Code › Article 2A - Leases › Part 5 - DEFAULT › Section 55-2A-511 - Merchant lessee's duties as to rightfully rejected goods.

(1) Subject to any security interest of a lessee (Section 55-2A-508(5) NMSA 1978), if a lessor or a supplier has no agent or place of business at the market of rejection, a merchant lessee, after rejection of goods in his possession or control, shall follow any reasonable instructions received from the lessor or the supplier with respect to the goods. In the absence of those instructions a merchant lessee shall make reasonable efforts to sell, lease or otherwise dispose of the goods for the lessor's account if they threaten to decline in value speedily. Instructions are not reasonable if on demand indemnity for expenses is not forthcoming.
(2) If a merchant lessee (Subsection (1)) or any other lessee (Section 55-2A-512 NMSA 1978) disposes of goods, he is entitled to reimbursement either from the lessor or the supplier or out of the proceeds for reasonable expenses of caring for and disposing of the goods and, if the expenses include no disposition commission, to such commission as is usual in the trade, or if there is none, to a reasonable sum not exceeding ten percent of the gross proceeds.
(3) In complying with this section or Section 55-2A-512 NMSA 1978, the lessee is held only to good faith. Good faith conduct hereunder is neither acceptance or conversion nor the basis of an action for damages.
(4) A purchaser who purchases in good faith from a lessee pursuant to this section or Section 55-2A-512 NMSA 1978 takes the goods free of any rights of the lessor and the supplier even though the lessee fails to comply with one or more of the requirements of this article.
History:
1978 Comp., § 55-2A-511, enacted by Laws 1992, ch. 114, § 66.
OFFICIAL COMMENTS
UCC Official Comments by ALI & the NCCUSL. Reproduced with permission of the PEB for the UCC. All rights reserved.
Uniform Statutory Source:
— Sections 2-603 and 2-706(5) [55-2-603 and 55-2-706 NMSA 1978, respectively].
Changes:
— Revised to reflect leasing practices and terminology.
"Action". Sections 1-201(1) [55-1-201 NMSA 1978].
"Good faith". Sections 1-201(19) and 2-103(1)(b) [55-1-201 and 55-2-103 NMSA 1978, respectively].
"Goods". Section 2A-103(1)(h) [55-2A-103 NMSA 1978].
"Lease". Section 2A-103(1)(j) [55-2A-103 NMSA 1978].
"Lessee". Section 2A-103(1)(n) [55-2A-103 NMSA 1978].
"Lessor". Section 2A-103(1)(p) [55-2A-103 NMSA 1978].
"Merchant lessee". Section 2A-103(1)(t) [55-2A-103 NMSA 1978].
"Purchaser". Section 1-201(33) [55-1-201 NMSA 1978].
"Rights". Section 1-201(36) [55-1-201 NMSA 1978].
"Security interest". Section 1-201(37) [55-1-201 NMSA 1978].
"Supplier". Section 2A-103(1)(x) [55-2A-103 NMSA 1978].
"Value". Section 1-201(44) [55-1-201 NMSA 1978].
ANNOTATIONS
Effective dates.
— Laws 1992, ch. 114, § 238 made Laws 1992, ch. 114, § 66 effective July 1, 1992.
2023 New Mexico Statutes › Chapter 55 - Uniform Commercial Code › Article 2A - Leases › Part 5 - DEFAULT › Section 55-2A-512 - Lessee's duties as to rightfully rejected goods.

(1) Except as otherwise provided with respect to goods that threaten to decline in value speedily (Section 55-2A-511 NMSA 1978) and subject to any security interest of a lessee (Section 55-2A-508(5) NMSA 1978):
(a) the lessee, after rejection of goods in the lessee's possession, shall hold them with reasonable care at the lessor's or supplier's disposition for a reasonable time after the lessee's seasonable notification of rejection;
(b) if the lessor or the supplier gives no instructions within a reasonable time after notification of rejection, the lessee may store the rejected goods for the lessor's or the supplier's account or ship them to the lessor or the supplier or dispose of them for the lessor's or the supplier's account with reimbursement in the manner provided in Section 55-2A-511 NMSA 1978; but
(c) the lessee has no further obligations with regard to goods rightfully rejected.
(2) Action by the lessee pursuant to Subsection (1) is not acceptance or conversion.
History:
1978 Comp., § 55-2A-512, enacted by Laws 1992, ch. 114, § 67.
OFFICIAL COMMENTS
UCC Official Comments by ALI & the NCCUSL. Reproduced with permission of the PEB for the UCC. All rights reserved.
Uniform Statutory Source:
— Sections 2-602(2)(b) and (c) and 2-604 [55-2-602 and 55-2-604 NMSA 1978, respectively].
Changes:
— Substantially rewritten.
Purposes:
— The introduction to subsection (1) references goods that threaten to decline in value speedily and not perishables, the reference in Section 2-604 [55-2-604 NMSA 1978], the statutory analogue. This is a change in style, not substance, as the first phrase includes the second. Subparagraphs (a) and (c) are revised versions of the provisions of Section 2-602(2)(b) and (c) [55-2-602 NMSA 1978]. Subparagraphs (a) states the rule with respect to the lessee's treatment of goods in its possession following rejection; subparagraph (b) states the rule regarding such goods if the lessor or supplier then fails to give instructions to the lessee. If the lessee performs in a fashion consistent with subparagraphs (a) and (b), subparagraph (c) exonerates the lessee.
Cross References:
— Sections 2-602(2)(b), 2-602(2)(c) and 2-604 [55-2-602 and 55-2-604 NMSA 1978, respectively].
"Action". Section 1-201(1) [55-1-201 NMSA 1978].
"Goods". Section 2A-103(1)(h) [55-2A-103 NMSA 1978].
"Lessee". Section 2A-103(1)(n) [55-2A-103 NMSA 1978].
"Lessor". Section 2A-103(1)(p) [55-2A-103 NMSA 1978].
"Notification". Section 1-201(26) [55-1-201 NMSA 1978].
"Reasonable time". Section 1-204(1) and (2) [55-1-204 NMSA 1978].
"Seasonably". Section 1-204(3) [55-1-204 NMSA 1978].
"Security interest". Section 1-201(37) [55-1-201 NMSA 1978].
"Supplier". Section 2A-103(1)(x) [55-2A-103 NMSA 1978].
"Value". Section 1-201(44) [55-1-201 NMSA 1978].
ANNOTATIONS
Effective dates.
— Laws 1992, ch. 114, § 238 made Laws 1992, ch. 114, § 67 effective July 1, 1992.
2023 New Mexico Statutes › Chapter 55 - Uniform Commercial Code › Article 2A - Leases › Part 5 - DEFAULT › Section 55-2A-513 - Cure by lessor of improper tender or delivery; replacement.

(1) If any tender or delivery by the lessor or the supplier is rejected because nonconforming and the time for performance has not yet expired, the lessor or the supplier may seasonably notify the lessee of the lessor's or the supplier's intention to cure and may then make a conforming delivery within the time provided in the lease contract.
(2) If the lessee rejects a nonconforming tender that the lessor or the supplier had reasonable grounds to believe would be acceptable with or without money allowance, the lessor or the supplier may have a further reasonable time to substitute a conforming tender if he seasonably notifies the lessee.
History:
1978 Comp., § 55-2A-513, enacted by Laws 1992, ch. 114, § 68.
OFFICIAL COMMENTS
UCC Official Comments by ALI & the NCCUSL. Reproduced with permission of the PEB for the UCC. All rights reserved.
Uniform Statutory Source:
— Section 2-508 [55-2-508 NMSA 1978].
Changes:
Revised to reflect leasing practices and terminology.
"Conforming". Section 2A-103(1)(d) [55-2A-103 NMSA 1978].
"Delivery". Section 1-201(14) [55-1-201 NMSA 1978].
"Lease contract". Section 2A-103(1)(l) [55-2A-103 NMSA 1978].
"Lessee". Section 2A-103(1)(n) [55-2A-103 NMSA 1978].
"Lessor". Section 2A-103(1)(p) [55-2A-103 NMSA 1978].
"Money". Section 1-201(24) [55-1-201 NMSA 1978].
"Notifies". Section 1-201(26) [55-1-201 NMSA 1978].
"Reasonable time". Section 1-204(1) and (2) [55-1-204 NMSA 1978].
"Seasonably". Section 1-204(3) [55-1-204 NMSA 1978].
"Supplier". Section 2A-103(1)(x) [55-2A-103 NMSA 1978].
ANNOTATIONS
Effective dates.
— Laws 1992, ch. 114, § 238 made Laws 1992, ch. 114, § 68 effective July 1, 1992.
2023 New Mexico Statutes › Chapter 55 - Uniform Commercial Code › Article 2A - Leases › Part 5 - DEFAULT › Section 55-2A-514 - Waiver of lessee's objections.

(1) In rejecting goods, a lessee's failure to state a particular defect that is ascertainable by reasonable inspection precludes the lessee from relying on the defect to justify rejection or to establish default:
(a) if, stated seasonably, the lessor or the supplier could have cured it (Section 55-2A-513 NMSA 1978); or
(b) between merchants if the lessor or the supplier after rejection has made a request in writing for a full and final written statement of all defects on which the lessee proposes to rely.
(2) A lessee's failure to reserve rights when paying rent or other consideration against documents precludes recovery of the payment for defects apparent in the documents.
History:
1978 Comp., § 55-2A-514, enacted by Laws 1992, ch. 114, § 69; 2005, ch. 144, § 39.
OFFICIAL COMMENTS
UCC Official Comments by ALI & the NCCUSL. Reproduced with permission of the PEB for the UCC. All rights reserved.
Uniform Statutory Source:
— Section 2-605 [55-2-605 NMSA 1978].
Changes:
— Revised to reflect leasing practices and terminology.
Purposes:
1. The principles applicable to the commercial practice of payment against documents (Subsection 2) are explained in official Comment 4 to Section 2-605 [55-2-605 NMSA 1978], the statutory analogue to this section.
2. As to the use of a record other than a writing and communications that are not written,
see
Section 2A-103 [55-2A-103 NMSA 1978], Comment (g).
Cross Reference:
— Section 2-605 [55-2-605 NMSA 1978] official comment 4.
"Between merchants". Section 2-104(3) [55-2-104 NMSA 1978].
"Goods". Section 2A-103(1)(h) [55-2A-103 NMSA 1978].
"Lessee". Section 2A-103(1)(n) [55-2A-103 NMSA 1978].
"Lessor". Section 2A-103(1)(p) [55-2A-103 NMSA 1978].
"Rights". Section 1-201(36) [55-1-201 NMSA 1978].
"Seasonably". Section 1-204(3) [55-1-204 NMSA 1978].
"Supplier". Section 2A-103(1)(x) [55-2A-103 NMSA 1978].
"Writing". Section 1-201(46) [55-1-201 NMSA 1978].
ANNOTATIONS
The 2005 amendment,
effective January 1, 2006, deleted in Subsection (2) the qualification that defects must be apparent on the face of the documents.
2023 New Mexico Statutes › Chapter 55 - Uniform Commercial Code › Article 2A - Leases › Part 5 - DEFAULT › Section 55-2A-515 - Acceptance of goods.

(1) Acceptance of goods occurs after the lessee has had a reasonable opportunity to inspect the goods and:
(a) the lessee signifies or acts with respect to the goods in a manner that signifies to the lessor or the supplier that the goods are conforming or that the lessee will take or retain them in spite of their nonconformity; or
(b) the lessee fails to make an effective rejection of the goods (Section 55-2A-509(2) NMSA 1978).
(2) Acceptance of a part of any commercial unit is acceptance of that entire unit.
History:
1978 Comp., § 55-2A-515, enacted by Laws 1992, ch. 114, § 70.
OFFICIAL COMMENTS
UCC Official Comments by ALI & the NCCUSL. Reproduced with permission of the PEB for the UCC. All rights reserved.
Uniform Statutory Source:
— Section 2-606 [55-2-606 NMSA 1978].
Changes:
— The provisions of Section 2-606(1)(a) [55-2-606 NMSA 1978] were substantially rewritten to provide that the lessee's conduct may signify acceptance. Further, the provisions of Section 2-606(1)(c) [55-2-606 NMSA 1978] were not incorporated as irrelevant given the lessee's possession and use of the leased goods.
Cross References:
— Sections 2-606(1)(a) and 2-606(1)(c) [55-2-606 NMSA 1978].
"Commercial unit". Section 2A-103(1)(c) [55-2A-103 NMSA 1978].
"Conforming". Section 2A-103(1)(d) [55-2A-103 NMSA 1978].
"Goods". Section 2A-103(1)(h) [55-2A-103 NMSA 1978].
"Lessee". Section 2A-103(1)(n) [55-2A-103 NMSA 1978].
"Lessor". Section 2A-103(1)(p) [55-2A-103 NMSA 1978].
"Supplier". Section 2A-103(1)(x) [55-2A-103 NMSA 1978].
ANNOTATIONS
Effective dates.
— Laws 1992, ch. 114, § 238 made Laws 1992, ch. 114, § 70 effective July 1, 1992.