(a) A security interest under N.M. Stat. Ann. Chapter 55, Article 9 may be created in goods that are fixtures or may continue in goods that become fixtures. A security interest does not exist under this article in ordinary building materials incorporated into an improvement on land.

(b) N.M. Stat. Ann. Chapter 55, Article 9 does not prevent creation of an encumbrance upon fixtures under real property law.

(c) In cases not governed by Subsections (d) through (h) of this section, a security interest in fixtures is subordinate to a conflicting interest of an encumbrancer or owner of the related real property other than the debtor.

(d) Except as otherwise provided in Subsection (h) of this section, a perfected security interest in fixtures has priority over a conflicting interest of an encumbrancer or owner of the real property if the debtor has an interest of record in or is in possession of the real property and:

(1)     the security interest is a purchase-money security interest;

(2)     the interest of the encumbrancer or owner arises before the goods become fixtures; and

(3)     the security interest is perfected by a fixture filing before the goods become fixtures or within twenty days thereafter.

(e) A perfected security interest in fixtures has priority over a conflicting interest of an encumbrancer or owner of the real property if:

(1)     the debtor has an interest of record in the real property or is in possession of the real property and the security interest:

(A)         is perfected by a fixture filing before the interest of the encumbrancer or owner is of record; and

(B)         has priority over any conflicting interest of a predecessor in title of the encumbrancer or owner;

(2)     before the goods become fixtures, the security interest is perfected by any method permitted by N.M. Stat. Ann. Chapter 55, Article 9, and the fixtures are readily removable:

(A) factory or office machines;

(B)         equipment that is not primarily used or leased for use in the operation of the real property; or

(C)         replacements of domestic appliances that are consumer goods; (3)     the conflicting interest is a lien on the real property obtained by legal or

equitable proceedings after the security interest was perfected by any method permitted by this article; or

(4)     the security interest is:

(A)         created in a manufactured home in a manufactured-home transaction; and

(B) perfected pursuant to a statute described in Paragraph (2) of Subsection (a) of Section 55-9-311 N.M. Stat. Ann..

(f) A security interest in fixtures, whether or not perfected, has priority over a conflicting interest of an encumbrancer or owner of the real property if:

(1)     the encumbrancer or owner has, in an authenticated record, consented to the security interest or disclaimed an interest in the goods as fixtures; or

(2)     the debtor has a right to remove the goods as against the encumbrancer or owner.

(g) The priority of the security interest under Paragraph (2) of Subsection (f) of this section continues for a reasonable time if the debtor’s right to remove the goods as against the encumbrancer or owner terminates.

(h) A mortgage is a construction mortgage to the extent that it secures an obligation incurred for the construction of an improvement on land, including the acquisition cost of the land, if a recorded record of the mortgage so indicates. Except as otherwise provided in Subsections (e) and (f) of this section, a security interest in fixtures is subordinate to a construction mortgage if a record of the mortgage is recorded before the goods become fixtures and the goods become fixtures before the completion of the construction. A mortgage has this priority to the same extent as a construction mortgage to the extent that it is given to refinance a construction mortgage.