Every mortgage or other instrument securing a loan upon real estate and constituting a lien, or the full equivalent thereof, upon the real estate securing such loan, may secure future advances and the lien of such mortgage shall attach upon its execution and have priority from the time of recording as to all advances, whether obligatory or discretionary, made thereunder until such mortgage is released of record; provided, that the lien of such mortgage shall not exceed at any one time the maximum amount stated in the mortgage.
History: 1953 Comp., § 61-7-9, enacted by Laws 1975, ch. 61, § 1.
ANNOTATIONSRecording statutes provide notice and indicate limits of financing. — In lending money secured by property, recording statutes provide for notice to other potential lenders and indicate the upper limits of that financing. N.M. Bank & Trust Co. v. Lucas Bros., 1978-NMSC-062, 92 N.M. 2, 582 P.2d 379.
Certainty of extent to which mortgage encumbers property required. — Because potential lenders rely upon recorded mortgages to determine whether to make other loans, there must be certainty as to the extent to which a mortgage encumbers property. N.M. Bank & Trust Co. v. Lucas Bros., 1978-NMSC-062, 92 N.M. 2, 582 P.2d 379.
Section does not require that subsequent advances make reference to previous mortgage with the future advance clause for that clause to operate. In re Davis, 44 Bankr. 88 (Bankr. D.N.M. 1984).
Amount secured by mortgage. — This section should be read to mean that the amount secured by the mortgage shall not exceed the maximum amount stated in the mortgage. Any excess would be unsecured. Pioneer Sav. & Trust v. Rue, 1989-NMSC-079, 109 N.M. 228, 784 P.2d 415.