New Mexico § 55-9-205 Use or disposition of collateral permissible

New Mexico Statutes

§ 55-9-205 — Use or disposition of collateral permissible

New Mexico § 55-9-205

Ch. 55Uniform Commercial Code

Art. 9Secured Transactions

This text of New Mexico § 55-9-205 (Use or disposition of collateral permissible) is published on Counsel Stack Legal Research, covering New Mexico primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

N.M. Stat. Ann. § 55-9-205 (2026).

Text

(a)A security interest is not invalid or fraudulent against creditors solely because:

(1)the debtor has the right or ability to:

(A)use, commingle or dispose of all or part of the collateral, including returned or repossessed goods;

(B)collect, compromise, enforce or otherwise deal with collateral;

(C)accept the return of collateral or make repossessions; or (D) use, commingle or dispose of proceeds; or (2) the secured party fails to require the debtor to account for proceeds or replace collateral.

(b)This section does not relax the requirements of possession if attachment, perfection or enforcement of a security interest depends upon possession of the collateral by the secured party.

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(a) A security interest is not invalid or fraudulent against creditors solely because: (1) the debtor has the right or ability to: (A) use, commingle or dispose of all or part of the collateral, including returned or repossessed goods; (B) collect, compromise, enforce or otherwise deal with collateral; (C) accept the return of collateral or make repossessions; or (D) use, commingle or dispose of proceeds; or (2) the secured party fails to require the debtor to account for proceeds or replace collateral. (b) This section does not relax the requirements of possession if attachment, perfection or enforcement of a security interest depends upon possession of the collateral by the secured party.