Payment of a secured claim is upon the basis of the amount allowed if the creditor surrenders his security; otherwise payment is upon the basis of one of the following:
A. if the creditor exhausts his security before receiving payment (unless precluded by other law), upon the amount of the claim allowed less the fair value of the security; or
B. if the creditor does not have the right to exhaust his security or has not done so, upon the amount of the claim allowed less the fair value of the security determined, if applicable, by the terms of the agreement pursuant to which the security was delivered to the creditor, or by the creditor and personal representative by agreement, arbitration, compromise or litigation.
History: 1953 Comp., § 32A-3-809, enacted by Laws 1975, ch. 257, § 3-809.
Cross references. — For compromise of claim, see 45-3-813 NMSA 1978.
Am. Jur. 2d, A.L.R. and C.J.S. references. — Right of heir or devisee to have realty exonerated from lien thereon at expense of personal estate, 4 A.L.R.3d 1023.
34 C.J.S. Executors and Administrators §§ 368, 458.
Structure New Mexico Statutes
Chapter 45 - Uniform Probate Code
Article 3 - Probate of Wills and Administration
Section 45-3-801 - Notice to creditors.
Section 45-3-802 - Statutes of limitations.
Section 45-3-803 - Limitations on presentation of claims.
Section 45-3-804 - Manner of presentation of claims.
Section 45-3-805 - Classification of claims.
Section 45-3-806 - Allowance of claims.
Section 45-3-807 - Payment of claims.
Section 45-3-808 - Individual liability of personal representative.
Section 45-3-809 - Secured claims.
Section 45-3-810 - Claims not due and contingent or unliquidated claims.
Section 45-3-811 - Counterclaims.
Section 45-3-812 - Execution and levies prohibited.
Section 45-3-813 - Compromise of claims.
Section 45-3-814 - Encumbered assets.
Section 45-3-815 - Administration in more than one state; duty of personal representative.
Section 45-3-816 - Final distribution to domiciliary representative.