Except as provided in the Uniform Commercial Code [Chapter 55 NMSA 1978], notes, bonds, due bills and all instruments in writing, by which the maker promises to pay to another, or order or bearer, a sum of money, or by which the maker promises to pay in property or labor, or to pay or deliver any property or labor, or acknowledges any money or labor or property to be due, are assignable by indorsement or by other writing, and the assignee has a right of action in his own name, subject to any defense or setoff, legal or equitable, which the maker or debtor had against any assignor before notice of his assignment.
History: Laws 1851-1852, p. 283; C.L. 1865, ch. 14, § 1; C.L. 1884, § 1725; C.L. 1897, § 2540; Code 1915, § 589; C.S. 1929, § 27-101; 1941 Comp., § 53-701; 1953 Comp., § 50-7-1; Laws 1961, ch. 96, § 11-106.
ANNOTATIONSThis section has no application to liability insurance policy because it is not a promissory note, bill of exchange or other negotiable instrument, but is rather an executory contract of indemnification which can be assigned within limitations imposed by law. Houtz v. General Bonding & Ins. Co., 235 F.2d 591 (10th Cir. 1956).
Section inapplicable to assignment as matter of law. — This section applies in terms to the assignment of the evidence of the debt. The section has no application where the assignment occurs pursuant to an equitable doctrine, which arises as a matter of law rather than by the act of the parties. Barnett v. Wedgewood, 1922-NMSC-068, 28 N.M. 312, 211 P. 601.
Assignee may sue on nonnegotiable note in own name. — A note transferred after maturity is subject to defenses existing between the payee and payors, and the question as to whether the note is negotiable or nonnegotiable is immaterial. Endorsement and delivery of a note operates as an assignment, even when the note be treated as nonnegotiable, and under our statute the assignee may sue in his own name. Southard v. Latham, 1914-NMSC-007, 18 N.M. 503, 138 P. 205.
Law reviews. — For comment, "Assignments - Maker's Defenses Cut Off - Uniform Commercial Code § 9-206," see 5 Nat. Resources J. 408 (1965).
For article, "Attachment in New Mexico - Part II," see 2 Nat. Resources J. 75 (1962).
Am. Jur. 2d, A.L.R. and C.J.S. references. — 6 Am. Jur. 2d Assignments §§ 119, 120, 123, 124; 11 Am. Jur. 2d Bills and Notes §§ 301, 930.
Priority as between different assignees of same chose in action as affected by notice to debtor, 31 A.L.R. 876, 110 A.L.R. 774.
Payment of judgment by debtor without notice of its assignment, 32 A.L.R. 1021.
Assignment of judgment, or an interest therein, to attorney for his services in procuring it, as subject to setoff of judgment against the assignor, 51 A.L.R. 1278.
Priority of assignment of chose in action over subsequent garnishment as affected by lack of notice to debtor of assignment, 52 A.L.R. 109.
Stockholders' statutory liability as assignable for subject of sale, 159 A.L.R. 1114.
Assignability of right to rescission or right to return of money or other property as incident of, 162 A.L.R. 743.
Priority between assignee and surety of contractor who completes contract as to money earned by contractor but unpaid before default, 164 A.L.R. 614.
Building and construction contractor, validity of assignment to one making loans or advances to, of labor or material claims, 164 A.L.R. 788.
Oil or gas "royalty" within language of assignment, 4 A.L.R.2d 492.
Assignment of statutory right of action for recovery of money lost at gambling, 18 A.L.R.2d 999.
Validity of anti-assignment clause in contract, 37 A.L.R.2d 1251.
6 C.J.S. Assignments § 6.