2021 New Mexico Statutes
Article 3 - Liens on Personal Property
Section 48-3-11 - [Acceptance of collateral security waives lien.]

No person shall be entitled to a lien under this article who has taken collateral security for the payment of the sum due him.
History: Laws 1851-1852, p. 243; C.L. 1865, ch. 77(2d), § 5; C.L. 1884, § 1538; C.L. 1897, § 2235; Code 1915, § 3335; Laws 1917, ch. 65, § 1 (3341); 1923, ch. 24, § 1 (3341); C.S. 1929, § 82-409; 1941 Comp., § 63-309; 1953 Comp., § 61-3-9.
Bracketed material. — The bracketed material was inserted by the compiler and is not part of the law.
Compiler's notes. — The subject matter which was originally contained in Code 1915, 3335, was given the number 3341 in the 1917 and 1923 amendatory laws. For the original Code 1915, 3341, see 48-3-14 NMSA 1978.
Landlord's chattel mortgage deemed cumulative, not collateral security. — A landlord who takes a chattel mortgage on property of his lessee already covered by his statutory lien will be deemed to have taken cumulative and not collateral security. In re Frick Book & Stationery Store, 1933-NMSC-104, 38 N.M. 120, 28 P.2d 660; Woodcock v. Cochran, 1915-NMSC-063, 21 N.M. 76, 153 P. 273.
Partial security credited toward lien. — Taking security for a portion of the material bill for plumbing did not invalidate the lien on the balance. The lien would be credited with the proceeds of the collateral. Hobbs v. Morrison Supply Co., 1937-NMSC-060, 41 N.M. 644, 73 P.2d 325.
Effect of taking collateral security. — Under former law, which had identical wording, it was held that this section does not work a forfeiture ex vi termini of a landlord's statutory lien for rent where landlord has taken collateral security for the rent after it has accrued and expressly disavowed any intent to waive the lien. Woodcock v. Cochran, 1915-NMSC-063, 21 N.M. 76, 153 P. 273.
Am. Jur. 2d, A.L.R. and C.J.S. references. — 51 Am. Jur. 2d Liens § 40.
Right to require security, as condition of canceling lien of record or of recording payment, 2 A.L.R.2d 1064.
53 C.J.S. Liens §§ 19 to 28.

Structure 2021 New Mexico Statutes