Assignments of moneys due or to become due from the state of New Mexico or from any municipal corporation, county or political subdivision or agency thereof under the terms of any construction, improvement, maintenance or repair contract or contracts for equipment or supplies shall be permitted subject to the following limitations and restrictions:

A. the assignment must, subject to Subparagraph D hereof, be to a bank, trust company or other financing institution;

B. the contract under which such moneys shall be due or become due must provide for payments to the assignor aggregating $500.00 or more;

C. the contract must not contain a provision prohibiting such assignment;

D. unless otherwise expressly permitted by the contract, such assignment shall cover all amounts payable under such contract and not already paid, shall not be made to more than one party, and shall not be subject to further assignment except that any such assignment may be made to one party as agent or trustee for two or more parties participating in such financing;

E. notice shall be given as required by Section 2 [56-9-55 NMSA 1978] of this act.

History: 1941 Comp., § 23-154, enacted by Laws 1947, ch. 22, § 1; 1953 Comp., § 27-1-54.

Bracketed material. — The bracketed material was inserted by the compiler and is not part of the law.

"Acceptance companies" fall within the definition of a "financing institution," as such term is used in this section. 1958 Op. Att'y Gen. No. 58-232.

Lease-purchase agreements assignable to "acceptance companies". — Suppliers may assign lease-purchase agreements entered into with a county and the rentals due thereon to financing organizations of a class generally known as "acceptance companies." 1958 Op. Att'y Gen. No. 58-232.