HOUSE BILL 1275

48th legislature - STATE OF NEW MEXICO - first session, 2007

INTRODUCED BY

Joseph Cervantes

AN ACT

RELATING TO THE UNIFORM COMMERCIAL CODE; PROVIDING FOR JURISDICTION AND JUDICIAL FORUM TO GOVERN LEASE OR RENTAL CONTRACTS; LIMITING INDEMNIFICATION BY A PARTY OF A LEASE TO ANOTHER PARTY OF THAT LEASE.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     Section 1. Section 55-2A-106 NMSA 1978 (being Laws 1992, Chapter 114, Section 13) is amended to read:

     "55-2A-106. LIMITATION ON POWER OF PARTIES TO [CONSUMER] A LEASE TO CHOOSE APPLICABLE LAW AND JUDICIAL FORUM.--

          [(1)] A. If the law chosen by the parties to a [consumer] lease is that of a jurisdiction other than a jurisdiction in which the lessee resides at the time the lease agreement becomes enforceable or within thirty days thereafter or in which the goods are to be used, the choice [is not enforceable] of law provision is void and unenforceable and against the public policy of the state.

          [(2)] B. If the judicial forum chosen by the parties to a [consumer] lease is a forum that would not otherwise have jurisdiction over the lessee, the choice [is not enforceable] of judicial forum provision is void and unenforceable and against the public policy of the state.

          C. A provision in a lease or rental contract that requires one party to the lease or rental contract to indemnify, hold harmless, insure or defend the other party to the lease or rental contract, including the other party's employees or agents, against liability, claims, damages, losses or expenses, including attorney fees, arising out of bodily injury to persons or damage to property caused by or resulting from, in whole or in part, the negligence, act or omissions of the indemnitee, its officers, employees or agents, is void and unenforceable and against the public policy of the state.

          D. A provision in a lease or rental contract that may contain an indemnification provision that shall be enforced only to the extent that it requires one party to the contract to indemnify, hold harmless or insure the other party to the contract, including its officers, employees or agents, against liability, claims, damages, losses or expenses, including attorney fees, only to the extent that the liability damages, losses or costs are caused by or arise out of the acts or omissions of the indemnitor or its officers, employees or agents.

          E. As used in this section, "indemnify" or "hold harmless" includes any requirement to name the indemnified party as an additional insured in the indemnitor's insurance coverage for the purpose of providing indemnification for any liability not otherwise allowed in this section."

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