2021 New Mexico Statutes
Article 1 - Banking Generally
Section 58-1-7 - Adverse claim to deposit.

Notice to any bank of an adverse claim to a deposit with such bank need not be recognized, and shall not be deemed effective, unless and until either the person making the claim supplies indemnity deemed adequate by the bank or the bank is served with process or order issued by a court of competent jurisdiction in an action in which the adverse claimant and the person or persons nominally entitled to the deposit are parties, provided that the bureau of revenue [revenue division of the taxation and revenue department] may levy against a deposit in accordance with the provisions of Section 7-1-31 NMSA 1978.
History: 1953 Comp., § 48-22-7.1, enacted by Laws 1975, ch. 330, § 8.
Bracketed material. — The bracketed material was inserted by the compiler and is not part of the law.
The bureau of revenue was abolished by Laws 1977, ch. 249, § 5. Section 4 of that act establishes the taxation and revenue department, consisting of three divisions, including the revenue division. Section 41 provides that references to the bureau in the Tax Administration Act (Chapter 7, Article 1 NMSA 1978) mean the revenue division. See 7-1-3, 7-2-2 and 9-11-4 NMSA 1978.
Cross references. — For the taxation and revenue department, see 9-11-1 NMSA 1978.
Statutory duty. — Section 58-1-7 NMSA 1978 establishes a mandatory statutory procedure with respect to the handling of adverse claims to deposits. As a result, it supplies a basis for the existence of a statutory duty. Alcantar v. Sanchez, 2011-NMCA-073, 150 N.M. 146, 257 P.3d 966.
Action not "adverse claim to a deposit". — This section did not apply to claims by third parties that the drawer had forged their endorsement on checks previously deposited into the drawer's checking account, because those claims were not "an adverse claim to a deposit" with the bank; rather, the claims were a claim of liability on the part of the bank and this claim of liability was not directed to a deposit. Landrum v. Security Nat'l Bank, 1985-NMCA-031, 104 N.M. 55, 716 P.2d 246, cert. denied, 103 N.M. 798, 715 P.2d 71 (1986).
Am. Jur. 2d, A.L.R. and C.J.S. references. — 10 Am. Jur. 2d Banks § 506.
Adverse claims, construction, application and effect of statute relating to notice to bank of, 62 A.L.R.2d 1116.
Special bank deposits as subject of attachment or garnishment to satisfy depositor's general obligations, 8 A.L.R.4th 998.
9 C.J.S. Banks and Banking §§ 280, 328 et seq., 337, 341, 351, 357, 358, 405.

Structure 2021 New Mexico Statutes