(1) A lease, although subject to this article, is also subject to any applicable:

(a) certificate of title statute of this state: Sections 64-4-4, 66-3-1 and 66-12-5.2 NMSA 1978;

(b) certificate of the title statute of another jurisdiction (Section 55-2A-105 NMSA 1978); or

(c) consumer protection statute of this state, or final consumer protection decision of a court of this state existing on the effective date of this article.

(2) In case of conflict between this article, other than Sections 55-2A-105, 55-2A-30455-2A-305 NMSA 1978, and a statute or decision referred to in Subsection (1), the statute or decision controls.

(3) Failure to comply with an applicable law has only the effect specified therein.

History: 1978 Comp., § 55-2A-104, enacted by Laws 1992, ch. 114, § 11.

OFFICIAL COMMENTS

UCC Official Comments by ALI & the NCCUSL. Reproduced with permission of the PEB for the UCC. All rights reserved.

Uniform statutory source. — Sections 9-203(4) and 9-302(3)(b) and (c) [55-9-203 and 55-9-302 NMSA 1978, respectively].

Changes. — Substantially revised.

1. This Article creates a comprehensive scheme for the regulation of transactions that create leases. Section 2A-102 [55-2A-102 NMSA 1978]. Thus, the Article supersedes all prior legislation dealing with leases, except to the extent set forth in this Section.

2. Subsection (1) states the general rule that a lease, although governed by the scheme of this Article, also may be governed by certain other applicable laws. This may occur in the case of a consumer lease. Section 2A-103(1)(e) [55-2A-103 NMSA 1978]. Those laws may be state statutes existing prior to enactment of Article 2A or passed afterward. In this case, it is desirable for this Article to specify which statute controls. Or the law may be a pre-existing consumer protection decision. This Article preserves such decisions. Or the law may be a statute of the United States. Such a law controls without any statement in this Article under applicable principles of preemption.

An illustration of a statute of the United States that governs consumer leases is the Consumer Leasing Act, 15 U.S.C. §§ 1667-1667(e) (1982) and its implementing regulation, Regulation M, 12 C.F.R. § 213 (1986); the statute mandates disclosures of certain lease terms, delimits the liability of a lessee in leasing personal property, and regulates the advertising of lease terms. An illustration of a state statute that governs consumer leases and which if adopted in the enacting state prevails over this Article is the Unif. Consumer Credit Code, which includes many provisions similar to those of the Consumer Leasing Act, e.g. Unif. Consumer Credit Code §§ 3.202, 3.209, 3.401, 7A U.L.A. 108-09, 115, 125 (1974), as well as provisions in addition to those of the Consumer Leasing Act, e.g., Unif. Consumer Credit Code §§ 5.109-.111, 7A U.L.A. 171-76 (1974) (the right to cure a default). Such statutes may define consumer lease so as to govern transactions within and without the definition of consumer lease under this Article.

3. Under subsection (2), subject to certain limited exclusions, in case of conflict a statute or a decision described in subsection (1) prevails over this Article. For example, a provision like Unif. Consumer Credit Code § 5.112, 7A U.L.A. 176 (1974), limiting self-help repossession, prevails over Section 2A-525(3) [55-2A-525 NMSA 1978]. A consumer protection decision rendered after the effective date of this Article may supplement its provisions. For example, in relation to Article 9 a court might conclude that an acceleration clause may not be enforced against an individual debtor after late payments have been accepted unless a prior notice of default is given. To the extent the decision establishes a general principle applicable to transactions other than secured transactions, it may supplement Section 2A-502 [55-2A-502 NMSA 1978].

4. Consumer protection in lease transactions is primarily left to other law. However, several provisions of this Article do contain special rules that may not be varied by agreement in the case of a consumer lease. E.g., Sections 2A-106, 2A-108, and 2A-109(2) [55-2A-106, 55-2A-108, 55-2A-109 NMSA 1978, respectively]. Were that not so, the ability of the parties to govern their relationship by agreement together with the position of the lessor in a consumer lease too often could result in a one-sided lease agreement.

5. In construing this provision the reference to statute should be deemed to include applicable regulations. A consumer protection decision is "final" on the effective date of this Article if it is not subject to appeal on that date or, if subject to appeal, is not later reversed on appeal. Of course, such a decision can be overruled by a later decision or superseded by a later statute.

Cross references. — Sections 2A-103(1)(e), 2A-106, 2A-108, 2A-109(2) and 2A-525(3) [55-2A-103, 55-2A-106, 55-2A-108, 55-2A-109 and 55-2A-525 NMSA 1978, respectively].

Definitional cross references. — "Lease". Section 2A-103(1)(j).

Compiler's notes. — The phrase "effective date of this article", referred to in this section, means July 1, 1992, the effective date of Laws 1992, ch. 114.