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Section 55-9-339 - Priority subject to subordination.

NM Stat § 55-9-339 (2019) (N/A)
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Chapter 55, Article 9 NMSA 1978 does not preclude subordination by agreement by a person entitled to priority.

History: 1978 Comp., § 55-9-339, enacted by Laws 2001, ch. 139, § 59.

OFFICIAL COMMENTS

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

1. Source. Former section 9-316.

2. Subordination by Agreement. The preceding sections deal elaborately with questions of priority. This section makes it entirely clear that a person entitled to priority may effectively agree to subordinate its claim. Only the person entitled to priority may make such an agreement: A person's rights cannot be adversely affected by an agreement to which the person is not a party.

Effective dates. — Laws 2001, ch. 139, § 155 makes the act effective July 1, 2001.

Decisions under former 55-9-316 NMSA 1978. — In light of the similarity of this section and former Section 55-9-316 NMSA 1978, annotations decided under former 55-9-316 NMSA 1978 have been included in the annotations in this section.

A subordination agreement by implication is not recognized; it must be expressed. Western Bank v. Matherly, 1987-NMSC-052, 106 N.M. 31, 738 P.2d 903 (decided under former law).

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