Section 48-7-20 - Limitation of exercise of all due-on-sale [options] - New Mexico Statutes

48-7-20. Limitation of exercise of all due-on-sale [options]

A lender may not exercise its option pursuant to a due-on-sale clause upon:   

A.     the creation of a lien or other encumbrance subordinate to the lender's security instrument which does not relate to a transfer of rights of occupancy in the property;   

B.     the creation of a purchase money security interest for household appliances;   

C.     a transfer by devise, descent or operation of law on the death of a joint tenant or tenant by the entirety;   

D.     the granting of a leasehold interest of three years or less not containing an option to purchase;   

E.     a transfer to a relative resulting from the death of a borrower;   

F.     a transfer where the spouse or children of the borrower become an owner of the property;   

G.     a transfer resulting from a decree of a dissolution of marriage, legal separation agreement or from an incidental property settlement agreement, by which the spouse of the borrower becomes an owner of the property; or   

H.     a transfer into an inter vivos trust in which the borrower is and remains a beneficiary and which does not relate to a transfer of rights of occupancy in the property.