46th legislature - STATE OF NEW MEXICO - first session, 2003
RELATING TO COMMERCIAL LAW; PROVIDING THAT THE UNIFORM COMMERCIAL CODE DOES NOT APPLY TO AN ASSIGNMENT OF A CLAIM OR RIGHT TO RECEIVE A WORKERS' COMPENSATION SETTLEMENT OR MEDICAID BENEFITS SETTLEMENT; AMENDING A SECTION OF THE UNIFORM COMMERCIAL CODE.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
Section 1. Section 55-9-109 NMSA 1978 (being Laws 2001, Chapter 139, Section 9, as amended) is amended to read:
"55-9-109. SCOPE.--
(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 of accounts, chattel paper, payment intangibles or promissory notes;
(4) a consignment;
(5) 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, as provided in Section 55-9-110 NMSA 1978; and
(6) a security interest arising under Section 55-4-210 or 55-5-118 NMSA 1978.
(b) The application of Chapter 55, Article 9 NMSA 1978 to a security interest in a secured obligation is not affected by the fact that the obligation is itself secured by a transaction or interest to which this article does not apply.
(c) Chapter 55, Article 9 NMSA 1978 does not apply to the extent that:
(1) a statute, regulation or treaty of the United States preempts the article;
(2) another statute of this state expressly governs the creation, perfection, priority or enforcement of a security interest created by this state or a governmental unit of this state;
(3) a statute of another state, a foreign country or a governmental unit of another state or a foreign country, other than a statute generally applicable to security interests, expressly governs creation, perfection, priority or enforcement of a security interest created by the state, country or governmental unit; or
(4) the rights of a transferee beneficiary or nominated person under a letter of credit are independent and superior under Section 55-5-114 NMSA 1978.
(d) Chapter 55, Article 9 NMSA 1978 does not apply to:
(1) a landlord's lien, other than an agricultural lien;
(2) a lien, other than an agricultural lien, given by statute or other rule of law for services or materials, but Section 55-9-333 NMSA 1978 applies with respect to priority of the lien;
(3) an assignment of a claim for wages, salary or other compensation of an employee;
(4) a sale of accounts, chattel paper, payment intangibles or promissory notes as part of a sale of the business out of which they arose;
(5) an assignment of accounts, chattel paper, payment intangibles or promissory notes which is for the purpose of collection only;
(6) an assignment of a right to payment under a contract to an assignee that is also obligated to perform under the contract;
(7) an assignment of a single account, payment intangible or promissory note to an assignee in full or partial satisfaction of a preexisting indebtedness;
(8) a transfer of an interest in or an assignment of a claim under a policy of insurance, other than an assignment by or to a health-care provider of a health-care-insurance receivable and any subsequent assignment of the right to payment, but Sections 55-9-315 and 55-9-322 NMSA 1978 apply with respect to proceeds and priorities in proceeds;
(9) an assignment of a right represented by a judgment, other than a judgment taken on a right to payment that was collateral;
(10) a right of recoupment or set-off, but:
(A) Section 55-9-340 NMSA 1978 applies with respect to the effectiveness of rights of recoupment or set-off against deposit accounts; and
(B) Section 55-9-404 NMSA 1978 applies with respect to defenses or claims of an account debtor;
(11) the creation or transfer of an interest in or lien on real property, including a lease or rents thereunder, except to the extent that provision is made for:
(A) liens on real property in Sections 55-9-203 and 55-9-308 NMSA 1978;
(B) fixtures in Section 55-9-334 NMSA 1978;
(C) fixture filings in Sections 55-9-501, 55-9-502, 55-9-512, 55-9-516 and 55-9-519 NMSA 1978; and
(D) security agreements covering personal and real property in Section 55-9-604 NMSA 1978;
(12) an assignment of a claim arising in tort, other than a commercial tort claim, but Sections 55-9-315 and 55-9-322 NMSA 1978 apply with respect to proceeds and priorities in proceeds;
(13) an assignment of a deposit account in a
consumer transaction, but Sections 55-9-315 and 55-9-322 NMSA
1978 apply with respect to proceeds and priorities in proceeds;
[or]
(14) a transfer by this state or a governmental unit of this state;
(15) an assignment of a claim or right to receive compensation for injuries or sickness as described in 26 U.S.C. Section 104 (a) (1) or (2), as amended; or
(16) an assignment of a claim or right to receive benefits under a special needs trust as describes in 42 U.S.C. Section 1396p (d) (4), as amended."
Section 2. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2003.