A secured creditor who has personal property of the debtor as security as provided by the Uniform Commercial Code [Chapter 55 NMSA 1978] may proceed according to the terms of the security instrument and the Uniform Commercial Code. The debtor cannot exempt personal property given to a secured creditor as security unless there be more property than is necessary to pay the debt to the secured creditor. The debtor may claim an exemption out of the surplus.
§ 42-10-6 NMSA 1978
Personal property used as a security under the Uniform Commercial Code is not exempt
Applied in 1 court decision — leading case Yparrea v. Roswell Production Credit Ass'n (In Re Yparrea) (1981)
Most recently applied in Yparrea v. Roswell Production Credit Ass'n (In Re Yparrea) (October 1981)
1953 Comp., § 24-5-6, enacted by Laws 1971, ch. 215, § 3.
Official source: NMOneSource (New Mexico Compilation Commission). Reproduced from public-domain New Mexico statutes; confirm against the official source for the current text. Not legal advice.