In every case in which different liens are asserted against any property, the court in the judgment must declare the rank of each lien, or class of liens, which shall be in the following order, viz:
A. all persons other than the original contractors and subcontractor;
B. the subcontractors;
C. the original contractors.
And the proceeds of the sale of the property must be applied to each lien, or class of liens, in the order of its rank, and whenever, on the sale of the property subject to the lien, there is a deficiency of proceeds, judgment may be docketed for the deficiency in like manner, and with like effect as in actions for the foreclosure of mortgages.
History: Laws 1880, ch. 16, § 13; C.L. 1884, § 1531; C.L. 1897, § 2228; Code 1915, § 3329; C.S. 1929, § 82-212; 1941 Comp., § 63-212; 1953 Comp., § 61-2-12.
ANNOTATIONSBracketed material. — The bracketed material was inserted by the compiler and is not part of the law.
Cross references. — For foreclosure of mortgages, see 39-4-1 NMSA 1978 et seq.
Priority in time gives priority in right between lien holders of the same class. Kemp Lumber Co. v. Howard, 237 F. 574 (8th Cir. 1916).
Payment to real property lienors of same priority. — Once the priority between lienors of real property is determined according to Section 48-2-5 NMSA 1978, this section determines the rank of lienors of the same priority; when payment from the proceeds of foreclosed real property is distributed to lienors of the same rank, it must be done pro rata, and without regard to the time in which liens of the same rank vested. Valley Fed. Sav. & Loan Ass'n v. T-Bird Home Ctrs., Inc., 1987-NMSC-067, 106 N.M. 223, 741 P.2d 826.
Am. Jur. 2d, A.L.R. and C.J.S. references. — 53 Am. Jur. 2d Mechanics' Liens §§ 265 et seq., 325, 415 et seq., 428 et seq.
56 C.J.S. Mechanics' Liens §§ 220 to 245.