A.   As used in this section:

(1)   “Article 9” means Chapter 55, Article 9 NMSA 1978 or, to the extent applicable to any particular issue, Article 9 of the Uniform Commercial Code as adopted by the state whose laws govern that issue pursuant to the choice-of-laws rules contained in Chapter 55, Article 9 NMSA 1978; and

(2)   “conflicting interest” means an interest in proceeds, held by a person other than an assignee, that is:

(a)   a security interest arising pursuant to Article 9; or

(b)   any other interest if Article 9 resolves the priority conflict between that person and a secured party with a conflicting security interest in the proceeds.

Terms Used In New Mexico Statutes 56-15-15

  • Uniform Commercial Code: A set of statutes enacted by the various states to provide consistency among the states' commercial laws. It includes negotiable instruments, sales, stock transfers, trust and warehouse receipts, and bills of lading. Source: OCC
B.   An assignee’s security interest in identifiable cash proceeds is perfected if its security interest in rents is perfected.  An assignee’s security interest in identifiable noncash proceeds is perfected only if the assignee perfects that interest in accordance with Article 9.

C.   Except as otherwise provided in Subsection D of this section, priority between an assignee’s security interest in identifiable proceeds and a conflicting interest is governed by the priority rules in Article 9.

D.   An assignee’s perfected security interest in identifiable cash proceeds is subordinate to a conflicting interest that is perfected by control pursuant to Article 9 but has priority over a conflicting interest that is perfected other than by control.

History: Laws 2011, ch. 141, § 15.