The possession required under this act [48-3-22 to 48-3-27 NMSA 1978] shall be physical custody. No lien shall exist where:
A. the article has not been delivered to the physical custody of the person or firm claiming the lien;
B. without fraud or false representation, the physical custody of the article has been surrendered by the person or firm performing the work or service;
C. the person or firm performing the work or service has accepted collateral security for payment of the amount due.
History: 1941 Comp., § 63-318, enacted by Laws 1953, ch. 125, § 2; 1953 Comp., § 61-3-21.
ANNOTATIONSAm. Jur. 2d, A.L.R. and C.J.S. references. — Right to require security as condition of canceling lien of record or of recording payment, 2 A.L.R.2d 1064.