New Mexico § 19-7-37 - Assignment of grazing or agricultural lease or purchase contract as collateral; approval of commissioner; effect

§ 19-7-37. Assignment of grazing or agricultural lease or purchase contract as collateral; approval of commissioner; effect

Any lease of state lands for grazing or agricultural purposes and any contract for

the purchase of state lands may be assigned as collateral security, with the approval

of the commissioner of public lands; and after such approval such assignment shall

have the effect of giving the assignee a lien on any lease or purchase contract so

assigned, or any renewal or renewals thereof by assignor and all rights of renewal

of any such lease, together with the improvements thereon, to secure the indebtedness

specified in such assignment and any further advances or expenditures authorized to

be made by the assignee by the terms of such assignment; and after any such assignment

shall be approved by the commissioner of public lands, and while same is in force

and effect as hereinafter provided, no relinquishment or assignment of a lease or

transfer of a state purchase contract, or portions thereof, embraced in such assignment

shall be accepted or approved for filing respectively by the commissioner of public

lands, unless the holder of such collateral assignment shall release in writing any

collateral assignment held by him covering such lease or contract being transferred,

assigned or relinquished or, in case of assignment only, unless the assignee agrees

in writing to assume or take the lease or contract subject to the rights of any collateral

assignee. The preference right of renewal of any lease held under collateral assignment shall

be vested in the holder of such assignment, subject only to the right of renewal of

the lessee at the date of expiration of said lease, and to all the provisions of law

now in effect or hereinafter enacted; provided, however, that any renewal lease issued

to subsequent collateral assignees, under the preference right of renewal provided

for herein, shall be subject to the rights of the holders of the prior assignments

of record in the state land office.