The collateral assignments of record in the state land office upon grazing leases may be foreclosed in the manner provided by law for the foreclosure of chattel mortgages, and the collateral assignments of record in the state land office upon state purchase contracts may be foreclosed in the manner provided by law for the foreclosure of mortgages on real estate, and the purchaser at any sale under such foreclosure, if otherwise qualified to lease or purchase state land, as the case may be, on the filing with the commissioner of public lands of the transfer to him of any such lease or purchase contract, pursuant to any such foreclosure sale, and the payment of all delinquent payments on the lease or purchase contract so transferred, shall be entitled to a new lease or purchase contract on his compliance with all the conditions governing the lease or purchase of state lands, now or hereafter provided by law, or by regulation of the commissioner of public lands; provided, however, that in the event the collateral assignment foreclosed was subject to or inferior to a prior assignment, a purchaser at such foreclosure sale shall take such new lease or purchase contract subject to all prior assignments filed and approved in accordance with this act [19-7-37 to 19-7-45 NMSA 1978]. Any purchaser at such foreclosure sale shall also be entitled to the improvements on the lands covered by the lease or purchase contract purchased by him and to all rights of renewal of any such lease held by the original lessee; subject, however, to the rights of the holders of any prior assignments of record in the state land office.

History: Laws 1933, ch. 126, § 6; 1937, ch. 51, § 3; 1939, ch. 48, § 4; 1941 Comp., § 8-841; 1953 Comp., § 7-8-43.

Bracketed material. — The bracketed material was inserted by the compiler and is not part of the law.

Cross references. — For provision giving existing lessee preferential opportunity to meet highest rental offered by other applicant, see 19-7-49 NMSA 1978.

For execution and foreclosure sale, see 39-5-1 NMSA 1978 et seq.

Foreclosure on contract assigned as collateral. — An assignment of a contract for the purchase of state lands creates a lien on the contract itself rather than on the land covered by the contract; thus, a creditor who forecloses on a state land contract assigned as collateral for a debt obtains only the right to a new purchase contract. United States v. Agri Servs., Inc., 81 F.3d 1002 (10th Cir. 1996).

Sale of lease. — Execution sale of the interest of a lessee in state lands may be had, subject to approval by the land commissioner of the purchaser as lessee. 1955 Op. Att'y Gen. No. 55-6337.

Transfer to purchaser. — The transfer to purchaser of the lease pursuant to an execution sale should be filed with the land commissioner and upon approval of purchaser as a lessee, the commissioner should issue a new lease to the purchaser at sale in the same manner as provided for a purchaser under foreclosure of assignments of state-leased lands under this section. 1955 Op. Att'y Gen. No. 55-6337.