New Mexico Statutes 48-7-20. Limitation of exercise of all due-on-sale [options]
A lender may not exercise its option pursuant to a due-on-sale clause upon:
Terms Used In New Mexico Statutes 48-7-20
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Devise: To gift property by will.
- Inter vivos: Transfer of property from one living person to another living person.
- Lien: A claim against real or personal property in satisfaction of a debt.
- Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
A. the creation of a lien or other encumbrance subordinate to the lender’s security instrument which does not relate to a transfer of rights of occupancy in the property;
B. the creation of a purchase money security interest for household appliances;
C. a transfer by devise, descent or operation of law on the death of a joint tenant or tenant by the entirety;
D. the granting of a leasehold interest of three years or less not containing an option to purchase;
E. a transfer to a relative resulting from the death of a borrower;
F. a transfer where the spouse or children of the borrower become an owner of the property;
G. a transfer resulting from a decree of a dissolution of marriage, legal separation agreement or from an incidental property settlement agreement, by which the spouse of the borrower becomes an owner of the property; or
H. a transfer into an inter vivos trust in which the borrower is and remains a beneficiary and which does not relate to a transfer of rights of occupancy in the property.