§ 55-9-402 NMSA 1978

Secured party not obligated on contract of debtor or in tort

Known as the Uniform Commercial Code

The act spans §§ 55–55 (591 sections).

Applied in 4 court decisions — leading case Waterfield v. Burnett (In Re Burnett) (1982)

Most recently applied in NationsCredit Commercial Corp. v. Camp Town, Inc. (In Re Camp Town, Inc.) (June 1996)

1978 Comp., § 55-9-402, enacted by Laws 2001, ch. 139, § 64.

How often courts cite this section

citing decisions per year

Court decisions citing this, by year. The dip in the last several years is a data-coverage gap, not a real trend — our corpus holds fewer opinions from the most recent years, so recent citations are undercounted.

The existence of a security interest, agricultural lien or authority given to a debtor to dispose of or use collateral, without more, does not subject a secured party to liability in contract or tort for the debtor's acts or omissions.

1. Source. Former section 9-317.

2. Nonliability of Secured Party. This section, like former section 9-317, rejects theories on which a secured party might be held liable on a debtor's contracts or in tort merely because a security interest exists or because the debtor is entitled to dispose of or use collateral. This section expands former section 9-317 to cover agricultural liens.

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.