(1) Except as otherwise provided with respect to goods that threaten to decline in value speedily (Section 55-2A-511 NMSA 1978) and subject to any security interest of a lessee (Section 55-2A-508(5) NMSA 1978):

(a) the lessee, after rejection of goods in the lessee's possession, shall hold them with reasonable care at the lessor's or supplier's disposition for a reasonable time after the lessee's seasonable notification of rejection;

(b) if the lessor or the supplier gives no instructions within a reasonable time after notification of rejection, the lessee may store the rejected goods for the lessor's or the supplier's account or ship them to the lessor or the supplier or dispose of them for the lessor's or the supplier's account with reimbursement in the manner provided in Section 55-2A-511 NMSA 1978; but

(c) the lessee has no further obligations with regard to goods rightfully rejected.

(2) Action by the lessee pursuant to Subsection (1) is not acceptance or conversion.

History: 1978 Comp., § 55-2A-512, enacted by Laws 1992, ch. 114, § 67.

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 2-602(2)(b) and (c) and 2-604 [55-2-602 and 55-2-604 NMSA 1978, respectively].

Changes: — Substantially rewritten.

Purposes: — The introduction to subsection (1) references goods that threaten to decline in value speedily and not perishables, the reference in Section 2-604 [55-2-604 NMSA 1978], the statutory analogue. This is a change in style, not substance, as the first phrase includes the second. Subparagraphs (a) and (c) are revised versions of the provisions of Section 2-602(2)(b) and (c) [55-2-602 NMSA 1978]. Subparagraphs (a) states the rule with respect to the lessee's treatment of goods in its possession following rejection; subparagraph (b) states the rule regarding such goods if the lessor or supplier then fails to give instructions to the lessee. If the lessee performs in a fashion consistent with subparagraphs (a) and (b), subparagraph (c) exonerates the lessee.

Cross References: — Sections 2-602(2)(b), 2-602(2)(c) and 2-604 [55-2-602 and 55-2-604 NMSA 1978, respectively].

"Action". Section 1-201(1) [55-1-201 NMSA 1978].

"Goods". Section 2A-103(1)(h) [55-2A-103 NMSA 1978].

"Lessee". Section 2A-103(1)(n) [55-2A-103 NMSA 1978].

"Lessor". Section 2A-103(1)(p) [55-2A-103 NMSA 1978].

"Notification". Section 1-201(26) [55-1-201 NMSA 1978].

"Reasonable time". Section 1-204(1) and (2) [55-1-204 NMSA 1978].

"Seasonably". Section 1-204(3) [55-1-204 NMSA 1978].

"Security interest". Section 1-201(37) [55-1-201 NMSA 1978].

"Supplier". Section 2A-103(1)(x) [55-2A-103 NMSA 1978].

"Value". Section 1-201(44) [55-1-201 NMSA 1978].

Effective dates. — Laws 1992, ch. 114, § 238 made Laws 1992, ch. 114, § 67 effective July 1, 1992.