While farm products are located in a jurisdiction, the local law of that jurisdiction governs perfection, the effect of perfection or nonperfection and the priority of an agricultural lien on the farm products.

History: 1978 Comp., § 55-9-302, enacted by Laws 2001, ch. 139, § 22.

OFFICIAL COMMENTS

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

1. Source. New.

2. Agricultural Liens. This section provides choice-of-law rules for agricultural liens on farm products. Perfection, the effect of perfection or nonperfection, and priority all are governed by the law of the jurisdiction in which the farm products are located. Other choice-of-law rules, including Section 1-301 [55-1-301 NMSA 1978], determine which jurisdiction's law governs other matters, such as the secured party's rights on default. See Section 9-301 [55-9-301 NMSA 1978], Comment 2. Inasmuch as no agricultural lien on proceeds arises under this Article, this section does not expressly apply to proceeds of agricultural liens. However, if another statute creates an agricultural lien on proceeds, it may be appropriate for courts to apply the choice-of-law rule in this section to determine priority in the proceeds.

Cross references. — For Farm Products Secured Interest Act, see 56-13-1 NMSA 1958.

Repeals and reenactments. — Laws 2001, ch. 139, § 22 repealed former 55-9-302 NMSA 1978, as amended by Laws 1996, ch. 47, § 63, and enacted a new section, effective July 1, 2001.