If any assets of the estate are encumbered by mortgage, pledge, lien or other security interest, the personal representative may pay the encumbrance or any part thereof, renew or extend any obligation secured by the encumbrance or convey or transfer the assets to the creditor in satisfaction of his lien, in whole or in part, whether or not the holder of the encumbrance has presented a claim, if it appears to be for the best interest of the estate. Payment of an encumbrance does not increase the share of the distributee entitled to the encumbered assets unless the distributee is entitled to exoneration.
History: 1953 Comp., § 32A-3-814, enacted by Laws 1975, ch. 257, § 3-814; 1976 (S.S.), ch. 37, § 13.
Official comments. — See Commissioners on Uniform State Law official comment to 3-814 UPC.
Am. Jur. 2d, A.L.R. and C.J.S. references. — Right of executor or administrator personally to purchase and enforce mortgage or other lien on real property of decedent, 117 A.L.R. 1371.
33 C.J.S. Executors and Administrators §§ 189, 201; 34 C.J.S. Executors and Administrators §§ 468, 470.
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.