Identification of goods as goods to which a lease contract refers may be made at any time and in any manner explicitly agreed to by the parties. In the absence of explicit agreement, identification occurs:
(a) when the lease contract is made if the lease contract is for a lease of goods that are existing and identified;
(b) when the goods are shipped, marked or otherwise designated by the lessor as goods to which the lease contract refers, if the lease contract is for a lease of goods that are not existing and identified; or
(c) when the young are conceived, if the lease contract is for a lease of unborn young of animals.
UCC Official Comments © by ALI & the NCCUSL. Reproduced with permission of the PEB for the UCC. All rights reserved.
Uniform Statutory Source. — Section 2-501 [ 55-2-501 NMSA 1978].
Changes. — This section, together with Section 2A-218 [ 55-2A-218 NMSA 1978], is derived from the provisions of Section 2-501 [ 55-2-501 NMSA 1978], with changes to reflect lease terminology; however, this section omits as irrelevant to leasing practice the treatment of special property.
Purposes. — With respect to subsection (b) there is a certain amount of ambiguity in the reference to when goods are designated, e.g., when the lessor is both selling and leasing goods to the same lessee/buyer and has marked goods for delivery but has not distinguished between those related to the lease contract and those related to the sales contract. As in Section 2-501(1)(b) [ 55-2-501 NMSA 1978], this issue has been left to be resolved by the courts, case by case.
Cross References. — Sections 2-501 and 2A-218 [ 55-2-501 and 55-2A-218 NMSA 1978, respectively].
"Agreement". Section 1-201(3) [ 55-1-201 NMSA 1978].
"Goods". Section 2A-103(1)(h) [ 55-2A-103 NMSA 1978].
"Lease". Section 2A-103(1)(j) [ 55-2A-103 NMSA 1978].
"Lease contract". Section 2A-103(1)(l) [ 55-2A-103 NMSA 1978].
"Lessor". Section 2A-103(1)(p) [ 55-2A-103 NMSA 1978].
"Party". Section 1-201(29) [ 55-1-201 NMSA 1978].