New Mexico Statutes
Article 10 - Uniform Voidable Transactions
Section 56-10-23 - Extinguishment of cause of action.

A cause of action with respect to a transfer or obligation under the Uniform Voidable Transactions Act is extinguished unless action is brought:
A. under Paragraph (1) of Subsection A of Section 56-10-18 NMSA 1978 not later than four years after the transfer was made or the obligation was incurred or, if later, not later than one year after the transfer or obligation was or could reasonably have been discovered by the claimant;
B. under Paragraph (2) of Subsection A of Section 56-10-18 NMSA 1978 or Subsection A of Section 56-10-19 NMSA 1978 not later than four years after the transfer was made or the obligation was incurred; or
C. under Subsection B of Section 56-10-19 NMSA 1978 not later than one year after the transfer was made.
History: Laws 1989, ch. 382, § 10; 2015, ch. 54, § 18.
The 2015 amendment, effective January 1, 2016, substituted "Uniform Voidable Transactions Act" for references to the former Uniform Fraudulent Transfer Act; in the introductory sentence, after "respect to a", deleted "fraudulent", and after "Uniform", deleted "Fraudulent Transfer" and added "Voidable Transactions"; in Subsection A, after "Section", deleted "5 of the Uniform Fraudulent Transfer Act within" and added "56-10-18 NMSA 1978 not later than", and after "if later", deleted "within" and added "not later than"; and in Subsection B, after the first occurrence of "Section", deleted "5" and added "56-10-18 NMSA 1978", and after the second occurrence of "Section", deleted "6 of that act within" and added "56-10-19 NMSA 1978 not later than"; and in Subsection C, after "Section", deleted "6 of that act within" and added "56-10-19 NMSA 1978 not later than", and after "made", deleted "or the obligation was incurred".
Applicability. — Since the court found for the bankruptcy trustee on his claim of actual fraud, the one-year statute of limitations contained in this section was inapplicable. Mazer v. Jones, 184 Bankr. 377 (Bankr. D.N.M. 1995).
When the claimant bank purchased a judgment against the debtor from the Federal Deposit Insurance Corporation (FDIC), an action against the debtor to set aside an allegedly fraudulent transfer of property by the debtor had to be brought within four years from the date of transfer, not from the date of entry of the judgment in favor of the FDIC. First Sw. Fin. Servs. v. Pulliam, 1996-NMCA-032, 121 N.M. 436, 912 P.2d 828.

Structure New Mexico Statutes