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Section 55-9-402 - Secured party not obligated on contract of debtor or in tort.

NM Stat § 55-9-402 (2019) (N/A)
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The existence of a security interest, agricultural lien or authority given to a debtor to dispose of or use collateral, without more, does not subject a secured party to liability in contract or tort for the debtor's acts or omissions.

History: 1978 Comp., § 55-9-402, enacted by Laws 2001, ch. 139, § 64.

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 9-317.

2. Nonliability of Secured Party. This section, like former section 9-317, rejects theories on which a secured party might be held liable on a debtor's contracts or in tort merely because a security interest exists or because the debtor is entitled to dispose of or use collateral. This section expands former section 9-317 to cover agricultural liens.

Repeals and reenactments. — Laws 2001, ch. 139, § 64 repealed former 55-9-402 NMSA 1978, as amended by Laws 1985, ch. 193, § 27, and enacted a new section, effective July 1, 2001.

Am. Jur. 2d, A.L.R. and C.J.S. references. — 68A Am. Jur. 2d Secured Transactions § 554.

Liability of one financing importation of goods for reimbursement of third person who pays charges or duties, 27 A.L.R. 1526.

79 C.J.S. Secured Transactions § 125.

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