2019 New Mexico Statutes
Chapter 66 - Motor Vehicles
Article 3 - Registration Laws; Security Interests; Anti-Theft Provisions; Bicycles; Equipment; Unsafe Vehicles; Off-Highway Motor Vehicles; Other Vehicles
Part 3 - SECURITY INTERESTS
Section 66-3-201 - Filing security interests.

A. A security interest in a vehicle of a type required to be titled and registered in New Mexico is not valid against attaching creditors, subsequent transferees or lienholders unless perfected as provided by this section. This provision does not apply to liens dependent upon possession nor to property tax liens on manufactured homes perfected under Section 66-3-204 NMSA 1978.

B. Title applications may be submitted electronically to the department but all title applications shall be accompanied by the certificate of title last issued for the vehicle and shall contain the name and address of any lienholder, the date the security agreement was executed and the maturity date of the agreement.

C. Upon receipt of a title application, the department shall record the date it was received. When satisfied as to the genuineness of the application, the department shall file it and issue a new certificate of title showing the owner's name and all liens existing against the vehicle.

D. No security interest filed in any state which does not show all liens on the certificate of title shall be valid against any person in this state other than the parties to the security agreement or those persons who take with actual notice of the agreement.

History: 1953 Comp., § 64-3-201, enacted by Laws 1978, ch. 35, § 73; 1995, ch. 135, § 13.

Cross references. — For definition of "lien or encumbrance", see 66-1-4.10 NMSA 1978.

For electronic authentication and substitution for signature, see 14-3-15.2 NMSA 1978.

For oil and gas products liens, see 48-9-1 to 48-9-8 NMSA 1978.

For secured transactions, see 55-9-101 NMSA 1978 et seq.

For motor vehicle sales financing, see 58-19-1 NMSA 1978 et seq.

The 1995 amendment, effective June 16, 1995, in Subsection A, substituted "manufactured" for "mobile" and updated the code reference at the end; in Subsection B, inserted "Title applications may be submitted electronically to the department but"; and in Subsection C, substituted "department" for "division" in two places and made minor stylistic changes.

Failure to perfect security interest. — Where defendant loaned plaintiff funds to pay indebtedness on plaintiff's truck; defendant received title for the truck from plaintiff's lender; plaintiff retained possession of the truck; plaintiff never signed an assignment of title to the truck to defendant; defendant did not have title transferred to defendant's name; and defendant did not file a lien on the truck with the motor vehicle division, defendant did not have a valid security interest in the truck and was not authorized to repossess the truck when plaintiff failed to pay the loan. Jones v. Beavers, 1993-NMCA-100, 116 N.M. 634, 866 P.2d 362.

Filing provision afforded no protection to creditor with actual knowledge. — Provision, which provides that no conditional sale contract, conditional lease, chattel mortgage or other lien or encumbrance or title retention instrument upon a vehicle of a type required to be registered by the provision, other than a lien dependent upon possession, affords no protection to a creditor with actual knowledge of a prior conditional sale or lease agreement. Riggs v. Gardikas, 1967-NMSC-120, 78 N.M. 5, 427 P.2d 890.

Compliance mandatory in order to retain title or obtain lien. — Section 64-5-1, 1953 Comp. (similar to this section) makes compliance with the provisions thereof mandatory in order to retain title or obtain a valid lien or encumbrance. Clovis Fin. Co. v. Sides, 1963-NMSC-065, 72 N.M. 17, 380 P.2d 173.

To perfect a security interest in a mobile home, the secured creditor must file its security agreement with the motor vehicle division. Subsequently, a certificate of title is issued reflecting on its face all liens filed on the subject vehicle. In re Portillo, 18 Bankr. 995 (Bankr. D.N.M. 1982).

Failure to file rendered contracts invalid to intervening judgment creditors. — The clear language of Section 64-5-1, 1953 Comp. (similar to this section) compels the conclusion that the parties' failure to file the conditional sales contracts rendered them invalid as to the intervening judgment creditors of a party. Riggs v. Gardikas, 1967-NMSC-120, 78 N.M. 5, 427 P.2d 890.

No prior interest if application not filed before levy. — Where bank, on motion for summary judgment, failed to show that application for title was filed before levy to satisfy judgment debt, bank did not have prior security interest in automobile. Novak v. Dow, 1970-NMCA-104, 82 N.M. 30, 474 P.2d 712.

Chattel mortgages and instruments having effect of placing a lien on personal property are required to be in writing. Clovis Fin. Co. v. Sides, 1963-NMSC-065, 72 N.M. 17, 380 P.2d 173.

Removable drilling units not subject to security interest. — Drilling units which are bolted and welded to trucks but which can be removed are not subject to a security interest in the trucks requiring perfection under this section. First Nat'l Bank v. Niccum (In re Permian Anchor Servs.), 649 F.2d 763 (10th Cir. 1981).

The motor vehicle division should accept for filing all instruments, with or without acknowledgments appearing thereon, filed pursuant to Sections 64-5-1 and 64-5-2, 1953 Comp. (similar to this section and Section 66-3-202 NMSA 1978, respectively), and which instruments create and evidence a lien or encumbrance, or title retention, upon motor vehicles required to be registered. 1962 Op. Att'y Gen. No. 62-30.

Certified photocopy of instrument creating lien is valid for filing. 1963 Op. Att'y Gen. No. 63-56.

Title to accompany any lien to be filed. — If the bureau of revenue (now revenue division of taxation and revenue department) did not require the title to be filed with the lien, the law as it is set up would be ineffective. The person purchasing the vehicle with a title, on the face, clear and unencumbered, but a lien having been placed against the vehicle, the enforcement of that lien against the vehicle would be in violation of the dealers of bona fide purchaser for value. Therefore it is the opinion of this office that the motor vehicle department (now motor vehicle division) may require the title to accompany any lien to be filed in that department (division). 1953 Op. Att'y Gen. No. 53-5846.

Law reviews. — For article, "Attachment in New Mexico - Part II," see 2 Nat. Resources J. 75 (1962).

For article, "The Uniform Commercial Code: Some New Mexico Problems and Proposed Legislative Solutions," see 3 Nat. Resources J. 487 (1963).

Am. Jur. 2d, A.L.R. and C.J.S. references. — 7A Am. Jur. 2d Automobiles and Highway Traffic § 31.

60 C.J.S. Motor Vehicles § 42.