2018 New Mexico Statutes
Chapter 55 - Uniform Commercial Code
Article 2A - Leases
Section 55-2A-526 - Lessor's stoppage of delivery in transit or otherwise.
(1) A lessor may stop delivery of goods in the possession of a carrier or other bailee if the lessor discovers the lessee to be insolvent and may stop delivery of carload, truckload, planeload or larger shipments of express or freight if the lessee repudiates or fails to make a payment due before delivery, whether for rent, security or otherwise under the lease contract, or for any other reason the lessor has a right to withhold or take possession of the goods.
(2) In pursuing its remedies under Subsection (1) of this section, the lessor may stop delivery until:
(a) receipt of the goods by the lessee;
(b) acknowledgment to the lessee by any bailee of the goods, except a carrier, that the bailee holds the goods for the lessee; or
(c) such an acknowledgment to the lessee by a carrier via reshipment or as a warehouse.
(3) To stop delivery, a lessor shall so notify as to enable the bailee by reasonable diligence to prevent delivery of the goods.
(4) After notification, the bailee shall hold and deliver the goods according to the directions of the lessor, but the lessor is liable to the bailee for any ensuing charges or damages.
(5) A carrier who has issued a nonnegotiable bill of lading is not obliged to obey a notification to stop received from a person other than the consignor.
History: 1978 Comp., § 55-2A-526, enacted by Laws 1992, ch. 114, § 81; 2005, ch. 144, § 42.
OFFICIAL COMMENTS
UCC Official Comments by ALI & the NCCUSL. Reproduced with permission of the PEB for the UCC. All rights reserved.
Uniform Statutory Source: — Section 2-705 [55-2-705 NMSA 1978].
Changes: — Revised to reflect leasing practices and terminology.
"Bill of lading". Section 1-201(6) [55-1-201 NMSA 1978].
"Delivery". Section 1-201(14) [55-1-201 NMSA 1978].
"Discover". Section 1-201(25) [55-1-201 NMSA 1978].
"Goods". Section 2A-103(1)(h) [55-2A-103 NMSA 1978].
"Insolvent". Section 1-201(23) [55-1-201 NMSA 1978].
"Lease contract". Section 2A-103(1)(l) [55-2A-103 NMSA 1978].
"Lessee". Section 2A-103(1)(n) [55-2A-103 NMSA 1978].
"Lessor". Section 2A-103(1)(p) [55-2A-103 NMSA 1978].
"Notifies" and "Notification". Section 1-201(26) [55-1-201 NMSA 1978].
"Person". Section 1-201(30) [55-1-201 NMSA 1978].
"Receipt". Section 2-103(1)(c) [55-2-103 NMSA 1978].
"Remedy". Section 1-201(34) [55-1-201 NMSA 1978].
"Rights". Section 1-201(36) [55-1-201 NMSA 1978].
The 2005 amendment, effective January 1, 2006, changed "warehouseman" to "warehouse" in Subsection (2)(c).
