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AN ACT
RELATING TO THE UNIFORM COMMERCIAL CODE; PROVIDING FOR
JURISDICTION AND FORUM TO GOVERN LEASE OR RENTAL CONTRACTS;
LIMITING INDEMNIFICATION BY A PARTY OF A LEASE TO ANOTHER
PARTY OF THAT LEASE.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
Section 1. Section 55-2A-106 NMSA 1978 (being Laws
1992, Chapter 114, Section 13) is amended to read:
"55-2A-106. LIMITATION ON POWER OF PARTIES TO CONSUMER
LEASE TO CHOOSE APPLICABLE LAW AND FORUM.--
(1) If the law chosen by the parties to a consumer
lease is that of a jurisdiction other than a jurisdiction in
which the lessee resides at the time the lease agreement
becomes enforceable or within thirty days thereafter or in
which the goods are to be used, the choice is not
enforceable.
(2) If the judicial forum chosen by the parties to
a consumer lease is a forum that would not otherwise have
jurisdiction over the lessee, the choice is not enforceable.
(3) If the forum for an arbitration or mediation
hearing chosen by the parties to a consumer lease is in a
state or in a similar political subdivision in a foreign
country other than the state or the similar subdivision in
the foreign country in which the lessee resides at the time
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the lease agreement becomes enforceable or within thirty days
thereafter or in which the goods are to be used, the choice
is not enforceable."
Section 2. A new section of Chapter 56, Article 7 NMSA
1978 is enacted to read:
"COMMERCIAL INSTRUMENTS AND TRANSACTION.--
A. A provision of a lease or rental contract for
equipment that requires a party to the agreement to
indemnify, hold harmless, insure or defend the other party to
the agreement, including the other party's officers,
employees or agents against liability, claims, damages,
losses or expenses, including attorney fees, arising out of
bodily injury to a person or damage to property caused by or
resulting from, in whole or in part, the negligence, act or
omission of the indemnitee, its officers, employees or
agents, is void, unenforceable and against the public policy
of this state.
B. A lease or rental contract for equipment may
contain a provision that requires one party to the contract
to indemnify, hold harmless or insure the other party to the
contract, including its officers, employees or agents,
against liability, claims, damages, losses or expenses,
including attorney fees, only to the extent that the
liability, damages, losses or expenses are caused by, or
arise out of, the acts or omissions of the indemnitor or its
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officers, employees or agents.
C. A lease or rental contract for equipment that
does not contain a provision covered by this section shall be
presumed to conform to Subsections A and B of this section.
D. As used in this section, "lease or rental
contract for equipment" means any public, private, foreign or
domestic contract or agreement relating to the temporary use
of equipment without transfer of ownership of the equipment
from one party to the other.
E. As used in this section, "indemnify" or "hold
harmless" includes any requirement to name the indemnified
party as an additional insured in the indemnitor's insurance
coverage for the purpose of providing indemnification for any
liability not otherwise allowed in this section. The
provisions of this subsection shall not restrict the right of
any remedy available to a claimant or plaintiff.
F. Nothing in this section shall apply to a lease
or rental contract for a motor vehicle, as "motor vehicle" is
defined in Section 66-1-4.11 NMSA 1978 and that is designed
and used primarily to transport persons or property on a
public highway.
G. Nothing in this section shall apply to a
security agreement as defined in Section 55-9-102 NMSA 1978
or to a finance lease as defined in Section 55-2A-103 NMSA
1978 or to a lease by a repossessing lessor for equipment
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repossessed upon default under such a finance lease.
H. Nothing in this section shall apply to a lease
or rental contract for equipment for use in the production of
motion pictures or television."