N.M. Admin. Code § 12.7.2.7

Current through Register Vol. 35, No. 23, December 10, 2024

Section 12.7.2.7 - DEFINITIONS

A. "Buyer in the ordinary course of business" means a person who, in the ordinary course of business, buys farm products from a person engaged in farming operations who is in the business of selling farm products.

B. "Central filing system" means the system for filing effective financing statements established by the secretary of state pursuant to Section 4 [56-13-4 NMSA 1978] of the Farm Products Secured Interest Act.

C. "Commission merchant" means any person engaged in the business of receiving any farm product for sale, on commission or for or on behalf of another person.

D. "Crop year" for crops grown in soil is the year in which the crop(s) are harvested or are to be harvested. The crop year for animals is the calendar year in which they are born or acquired. The crop year for poultry and eggs is the year in which they are sold or are to be sold.

E. "Debtor" means the person subjecting a farm product to a security interest.

F. "Effective financing statement"

(1) means a statement that:

(a) is an original or reproduced copy thereof;

(b) is signed and filed by the secured party in the office of the secretary of state;

(c) is signed by the debtor;

(2) An effective financing statement must include the following information:

(a) the name and address of the secured party;

(b) the name and address of the debtor;

(c) the social security number of the debtor or, in the case of a debtor doing business other than as an individual, the internal revenue service taxpayer identification number of such debtor;

(d) a description of the farm products subject to the security interest;

(e) a list of each county in New Mexico where the farm product is used or produced or to be used or produced;

(f) the crop year unless every crop of the farm product in question, for the duration of the effective financing statement, is to be subject to the particular security interest;

(g) further details of the farm product subject to the security interest if needed to distinguish it from other quantities of such product owned by the same person but not subject to the particular security interest; and

(h) such other information that the secretary of state may require to comply with Section 1324 of the Food Security Act of 1985, Public Law 99-198 [7 U.S.C. Section 1631] or to more efficiently carry out the secretary of state's duties under the Farm Products Secured Interest Act [56-13-1 to 56-13-14 NMSA 1978];

(3) shall be amended in writing within three months, similarly signed and filed, to reflect material changes;

(4) remains effective for a period of five years from the date of filing, subject to extensions for additional periods of five years each by refiling or filing a continuation statement within six months before the expiration of the five-year period;

(5) lapses on either the expiration of the effective period of the statement or the filing of a notice signed by the secured party that the statement is terminated, whichever occurs first;

(6) is accompanied by the requisite filing fee set pursuant to Section 6 [56-13-6 NMSA 1978] of the Farm Products Secured Interest Act; and

(7) substantially complies with the requirements of this section even though it contains minor errors that are not seriously misleading; provided, however, for the purpose of this paragraph, errors in social security numbers and internal revenue service taxpayer identification numbers do not constitute minor errors. An effective financing statement may for any given debtor cover more than one farm product located in more than one county.

G. "Farm product" means an agricultural commodity, as species of livestock used or produced in farming operations, or a product of such crop or livestock in its unmanufactured state, that is in the possession of a person engaged in farming operations and includes a list of farm products that are covered by this general definition as prepared by the secretary of state.

H. "Person" means any individual, partnership, corporation, trust or any other business entity, and the singular includes the plural.

I. "Security interest" means an interest in farm products that secures payment or performance of an obligation.

J. "Selling agent" means any person, other than a commission merchant, who is engaged in the business of negotiating the sale and purchase of any farm product on behalf of a person engaged in farming operations.

K. "System operator" means the operations division within the office of the secretary of state.

N.M. Admin. Code § 12.7.2.7

8/1/98; Recompiled 10/15/01