Chapter 55, Chapter 55

taken security certificate. If a security certificate has been lost, apparently destroyed or wrongfully taken, and the owner fails to notify the issuer of that fact within a reasonable time after the owner has notice of it and the issuer registers a transfer of the security befor…

A person acting as authenticating trustee, transfer agent, registrar or other agent for an issuer in the registration of a transfer of its securities, in the issue of new security certificates or uncertificated securities or in the cancellation of surrendered security certificate…

from securities intermediary. (a) "Securities account" means an account to which a financial asset is or may be credited in accordance with an agreement under which the person maintaining the account undertakes to treat the person for whom the account is maintained as entitled to…

An action based on an adverse claim to a financial asset, whether framed in conversion, replevin, constructive trust, equitable lien or other theory, may not be asserted against a person who acquires a security entitlement under Section 55-8-501 NMSA 1978 for value and without no…

held by securities intermediary. (a) To the extent necessary for a securities intermediary to satisfy all security entitlements with respect to a particular financial asset, all interests in that financial asset held by the securities intermediary are held by the securities inter…

asset. (a) A securities intermediary shall promptly obtain and thereafter maintain a financial asset in a quantity corresponding to the aggregate of all security entitlements it has established in favor of its entitlement holders with respect to that financial asset. The securiti…

and distributions. (a) A securities intermediary shall take action to obtain a payment or distribution made by the issuer of a financial asset. A securities intermediary satisfies the duty if: (1) the securities intermediary acts with respect to the duty as agreed upon by the ent…

directed by entitlement holder. A securities intermediary shall exercise rights with respect to a financial asset if directed to do so by an entitlement holder. A securities intermediary satisfies the duty if: (1) the securities intermediary acts with respect to the duty as agree…

order. (a) A securities intermediary shall comply with an entitlement order if the entitlement order is originated by the appropriate person, the securities intermediary has had reasonable opportunity to assure itself that the entitlement order is genuine and authorized, and the …

holder's position to other form of security holding. A securities intermediary shall act at the direction of an entitlement holder to change a security entitlement into another available form of holding for which the entitlement holder is eligible or to cause the financial asset …

statute or regulation; manner of performance of duties of securities intermediary and exercise of rights of entitlement holder. (a) If the substance of a duty imposed upon a securities intermediary by Sections 55-8-504 through 55-8-508 NMSA 1978 is the subject of other statute, r…

entitlement holder. (a) In a case not covered by the priority rules in Chapter 55, Article 9 NMSA 1978 or the rules stated in Subsection (c) of this section, an action based on an adverse claim to a financial asset or security entitlement, whether framed in conversion, replevin, …

(a) Except as otherwise provided in Subsections (b) and (c), if a securities intermediary does not have sufficient interests in a particular financial asset to satisfy both its obligations to entitlement holders who have security entitlements to that financial asset and its oblig…

Chapter 55, Article 9 NMSA 1978 may be cited as the "Uniform Commercial Code- Secured Transactions". History: 1978 Comp., § 55-9-101, enacted by Laws 2001, ch. 139, § 1.

(a) In Chapter 55, Article 9 NMSA 1978: (1) "accession" means goods that are physically united with other goods in such a manner that the identity of the original goods is not lost; (2) "account", except as used in "account for", "account statement", "account to", "commodity acco…

payments; burden of establishing. (a) In this section: (1) "purchase-money collateral" means goods or software that secures a purchase-money obligation incurred with respect to that collateral; and (2) "purchase-money obligation" means an obligation of an obligor incurred as all …

(a) A secured party has control of a deposit account if: (1) the secured party is the bank with which the deposit account is maintained; (2) the debtor, secured party and bank have agreed in a signed record that the bank will comply with instructions originated by the secured par…

paper. (a) A purchaser has control of an authoritative electronic copy of a record evidencing chattel paper if a system employed for evidencing the assignment of interests in the chattel paper reliably establishes the purchaser as the person to which the authoritative electronic …

(a) A person has control of electronic money if: (1) the electronic money, a record attached to or logically associated with the electronic money or a system in which the electronic money is recorded gives the person: (A) power to avail itself of substantially all the benefit fro…

(a) A person has control of a certificated security, uncertificated security or security entitlement as provided in Section 55-8-106 NMSA 1978. (b) A secured party has control of a commodity contract if: (1) the secured party is the commodity intermediary with which the commodity…

A secured party has control of a letter-of-credit right to the extent of any right to payment or performance by the issuer or any nominated person if the issuer or nominated person has consented to an assignment of proceeds of the letter of credit under Subsection (c) of Section …

controllable payment intangible. (a) A secured party has control of a controllable electronic record as provided in Section 55-12-105 NMSA 1978. (b) A secured party has control of a controllable account or controllable payment intangible if the secured party has control of the co…

(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 oth…

(a) Except as otherwise provided in Subsections (c), (d) and (e) of this section, a description of personal or real property is sufficient, whether or not it is specific, if it reasonably identifies what is described. (b) Except as otherwise provided in Subsection (d) of this sec…

(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 …

2A NMSA 1978. 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 is subject to Chapter 55, Article 9 NMSA 1978. However, until the debtor obtains possession of the goods: (1) the securi…

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 definitio…

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…

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…

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 1…

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-…

(a) Except as otherwise provided in the Uniform Commercial Code [Chapter 55, NMSA 1978], a security agreement is effective according to its terms between the parties, against purchasers of the collateral and against creditors. (b) A transaction subject to Chapter 55, Article 9 NM…

Except as otherwise provided with respect to consignments or sales of accounts, chattel paper, payment intangibles or promissory notes, the provisions of Chapter 55, Article 9 NMSA 1978 with regard to rights and obligations apply whether title to collateral is in the secured part…

proceeds; supporting obligations; formal requisites. (a) A security interest attaches to collateral when it becomes enforceable against the debtor with respect to the collateral, unless an agreement expressly postpones the time of attachment. (b) Except as otherwise provided in S…

(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 aft…

(a) A security interest is not invalid or fraudulent against creditors solely because: (1) the debtor has the right or ability to: (A) use, commingle or dispose of all or part of the collateral, including returned or repossessed goods; (B) collect, compromise, enforce or otherwis…

financial asset. (a) A security interest in favor of a securities intermediary attaches to a person's security entitlement if: (1) the person buys a financial asset through the securities intermediary in a transaction in which the person is obligated to pay the purchase price to …

control of collateral. (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 inc…

collateral. (a) This section applies to cases in which there is no outstanding secured obligation and 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: (1) a secured p…

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 …

collateral or statement of account. (a) In this section: (1) "request" means a record of a type described in Paragraph (2), (3) or (4) of this subsection; (2) "request for an accounting" means a record signed by a debtor requesting that the recipient provide an accounting of the …

interests. 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 …

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…

interests in goods covered by a certificate of title. (a) This section applies to goods covered by a certificate of title, even if there is no other relationship between the jurisdiction under whose certificate of title the goods are covered and the goods or the debtor. (b) Goods…

interests in deposit accounts. (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…

interests in investment property. (a) Except as otherwise provided in Subsection (c) of this section, the following rules apply: (1) while a security certificate is located in a jurisdiction, the local law of that jurisdiction governs perfection, the effect of perfection or nonpe…

interests in letter-of-credit rights. (a) Subject to Subsection (c) of this section, the local law of the issuer's jurisdiction or a nominated person's jurisdiction governs perfection, the effect of perfection or nonperfection and the priority of a security interest in a letter-o…

interests in chattel paper. (a) Except as provided in Subsection (d) of this section, if chattel paper is evidenced only by an authoritative electronic copy of the chattel paper or is evidenced by an authoritative electronic copy and an authoritative tangible copy, the local law …

interests in controllable accounts, controllable electronic records and controllable payment intangibles. (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 5…

(a) In this section, "place of business" means a place where a debtor conducts its affairs. (b) Except as otherwise provided in this section, the following rules determine a debtor's location: (1) a debtor who is an individual is located at the individual's principal residence; (…