N.M. Admin. Code § 19.2.8.15

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

Section 19.2.8.15 - COLLATERAL ASSIGNMENTS

A. With the prior written consent of the commissioner and the payment to the commissioner of the collateral assignment fee as set forth in the schedule of fees, a lessee may assign as collateral security a lease that is not in default; provided, however, that the collateral assignment of more than one (1) lease to secure the same indebtedness shall be made by separate assigning instruments. The collateral assignment of a lease shall not prevent its cancellation by the commissioner.

B. Collateral assignments shall be made upon forms prescribed by the commissioner and shall be accompanied by the collateral assignment fee as set forth in the schedule of fees.

C. The foreclosure of collateral assignments shall be accomplished in the manner provided by law for the foreclosure of chattel mortgages. Upon the filing with the commissioner of documentation proving the bona fide foreclosure and purchase of the lease and the cure of any lease defaults, completed assignment forms, and the required fee, the lease shall be assigned to the purchaser at the foreclosure sale, if such purchaser is otherwise qualified to lease state trust lands.

D. The release of collateral assignments shall be accomplished by the collateral assignee's executing and filing with the commissioner a release upon a form prescribed by the commissioner and accompanied by the release of collateral assignment fee as set forth in the schedule of fees.

(1) The failure of a collateral assignee to execute and file with the commissioner the release of a collateral assignment upon the satisfaction of the debt secured by the assignment shall subject the assignee to the risk of criminal penalties and civil liabilities as provided by law.

(2) The personal representative in the probate of a deceased collateral assignee's estate may release collateral assignments by executing and filing with the commissioner the release and certified copies of such other documents as the commissioner may require.

N.M. Admin. Code § 19.2.8.15

3/11/81, 1/20/84, 9/30/85, 12/1/92, 6/29/96; 19.2.8.15 NMAC - Rn, 19 NMAC 3 SLO 8.15, 09/30/02, Amended by New Mexico Register, Volume XXVII, Issue 12, June 30, 2016, eff. 6/30/2016