2019 New Mexico Statutes
Chapter 6 - Public Finances
Article 6 - Local Government Finances
Section 6-6-15 - [Void indebtedness; payment from later collections; disposition of surplus.]
The void indebtedness mentioned in Section 6-6-11 NMSA 1978 shall remain valid to the extent and for the sole purpose of receiving any money which may afterwards be collected and belongs to the current year when they were contracted, and the collection thereof, when made, shall be distributed pro rata among the creditors having the void indebtedness, and in the event all of the valid and void indebtedness of any current year are paid in full and there is money for that current year remaining, the sum shall be converted into the fund for the next succeeding current year.
History: Laws 1897, ch. 42, § 18; C.L. 1897, § 302; Code 1915, § 1230; C.S. 1929, § 33-4244; 1941 Comp., § 7-610; 1953 Comp., § 11-6-9.
ANNOTATIONSBracketed material. — The bracketed material was inserted by the compiler and is not part of the law.
Debts exceeding income for year are void. — The legislature adopted as a policy the plan that counties and other municipal subdivisions should be compelled to limit their expenses to their respective incomes, and that their debts, insofar as they exceeded such income, should be void, except for the purposes of entitling the creditor to his pro rata of moneys coming in from deferred taxes. Johnston v. Board of Comm'rs, 1904-NMSC-018, 12 N.M. 237, 78 P. 43.
Recovery limited to pro rata share. — Where the Bateman Act (6-6-11 and 6-6-13 to 6-6-18 NMSA 1978) applies, the contractor's recovery is limited to his pro rata share with other creditors of any sums unexpended for the fiscal year and remaining in the general fund or subsequently collected and belonging to that current year. McMurtry v. City of Raton, 1958-NMSC-062, 64 N.M. 117, 325 P.2d 707 (1958), aff'd, 66 N.M. 277, 347 P.2d 168.
Judgment cannot be rendered against county when claim not paid due to insufficient funds. — No judgment can be rendered against a county on a claim for current indebtedness arising out of the publication of the delinquent tax list where such claim has been presented and allowed, and payment thereon refused or denied on account of insufficient funds. Sena v. Board of Comm'rs, 1921-NMSC-094, 27 N.M. 461, 202 P. 984.
Exhaustion of funds no defense when due to unlawful diversion. — A county creditor whose claim cannot be paid because of exhaustion of appropriate fund of the current year must bear the loss, except for his right to participate with other creditors in subsequent collections of revenue belonging to that year; but such exhaustion is no defense if it was due to an unlawful diversion. Las Vegas Indep. Publ'g Co. v. Board of Cnty. Comm'rs, 1931-NMSC-033, 35 N.M. 486, 1 P.2d 564.
Excess income received by public service company owned by city may be used to pay indebtedness. — When a public service company owes its existence to a municipal ordinance and operates thereunder and the city is the beneficial owner of all its stock which is held by a trustee, and the city, directly or indirectly, controls the activity of the trustee, such income as is collected in a year over and above outstanding bond obligations may be used to pay off void indebtedness. McMurtry v. City of Raton, 1959-NMSC-096, 66 N.M. 277, 347 P.2d 168.
Reduction of salary of deputy county clerk held improper. — Where board of county commissioners reduced the salary of the deputy county clerk when it was confronted with a shortage of funds, instead of resorting to the current expense fund or prorating the funds available as the statute requires in case of insufficiency of current expense fund, and there were sufficient funds on hand collected from delinquent taxes to satisfy all claims payable therefrom for the respective years during which the deputy's salary was reduced, he was entitled to be paid. Taylor v. Board of Comm'rs, 1940-NMSC-064, 44 N.M. 605, 107 P.2d 121.
