Tuesday, March 3, 2009

HB 539: Rental Property: Uniform Assignment of Rents Act

(O’Neill – Albuquerque)
Those of you who are carrying the loan on rental properties you have sold may be interested in HB 539. This bill constitutes the adoption of the Uniform Assignment of Rents Act promulgated by the National Commission on Uniform State Laws. Its purpose is to make it clear that any mortgage, deed of trust or the like that provides a creditor an interest in a piece of real estate will also provide a security interest in the rental income of that property, all enforceable in the event there is a default on the debt. This bill passed the House unanimously and is now in the Senate waiting for committee hearings. RANM supports this legislation.

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