N.M. Code R. § 19.2.14.16 – Collateral Assignment (Mortgage) of Contracts

A. With the consent of the commissioner the owner of a purchase contract may mortgage the owner’s interest in the contract together with the improvements upon the land by means of assigning the owner’s interest as collateral security to insure the payment of an indebtedness specified in said assignment. Upon approval of such collateral assignment by the commissioner, the assignee shall have a lien upon the said interests of the assignor and thereafter no contract so assigned shall be transferred free and clear except after release of said collateral assignment.
B. Collateral assignments shall be made only upon forms prescribed by the commissioner, which forms shall meet the other specified requirements of law.
C. Collateral assignments may be foreclosed by the assignee in the manner provided by law for the foreclosure of mortgages on real estate and the purchaser at such foreclosure sale shall, if otherwise qualified to purchase state trust land, be entitled to the purchase contract and the improvements located upon the land subject to prior collateral assignments, if any there be.
[12/31/1999; 19.2.14.16 NMAC - Rn, 19 NMAC 3. SLO 14.16, 9/30/2002; A, 6/11/2019]