(a) Except as otherwise provided in Subsection (c) of this section, this section applies if:(1) there is no outstanding secured obligation; and(2) the secured party is not committed to make advances, incur obligations or otherwise give value.(b) Within ten days after receiving a signed demand by the debtor, a secured party shall send to an account debtor that has received notification under Subsection (a) of Section 55-9-406 NMSA 1978 or Subsection (b) of Section 55-12-106 NMSA 1978 of an assignment to the secured party as assignee a signed record that releases the account debtor from any further obligation to the secured party.(c) This section does not apply to an assignment constituting the sale of an account, chattel paper or payment intangible. History: 1978 Comp., § 55-9-209, enacted by Laws 2001, ch. 139, § 19; 2023, ch. 142, § 54.OFFICIAL COMMENTS UCC Official Comments by ALI & the NCCUSL. Reproduced with permission of the PEB for the UCC. All rights reserved. 1. Source. New. 2. Scope and Purpose. Like Sections 9-208 [55-9-208 NMSA 1978] and 9-513 [55-9-513 NMSA 1978], which require a secured party to relinquish control of collateral and to file or provide a termination

. 2. Scope and Purpose. Like Sections 9-208 [55-9-208 NMSA 1978] and 9-513 [55-9-513 NMSA 1978], which require a secured party to relinquish control of collateral and to file or provide a termination statement for a financing statement, this section requires a secured party to free up collateral when there no longer is any outstanding secured obligation or any commitment to give value in the future. This section addresses the case in which account debtors have been notified to pay a secured party to whom the receivables have been assigned. It requires the secured party (assignee) to inform the account debtors that they no longer are obligated to make payment to the secured party. See Subsection (b). It does not apply to account debtors whose obligations on an account, chattel paper, or payment intangible have been sold. See Subsection (c). 3. 'Signed' Replaces 'Authenticated.' Consistent with the revised definition of 'sign' in Section 1-201 [55-1-201 NMSA 1978], the cognate term 'signed' replaces references to 'authenticated' in the pre-2022 text of this section.ANNOTATIONSThe 2023 amendment, effective January 1, 2024, revised certain provisions related to the duties of secured

gned' replaces references to 'authenticated' in the pre-2022 text of this section.ANNOTATIONSThe 2023 amendment, effective January 1, 2024, revised certain provisions related to the duties of secured parties; and in Subsection (b), after 'receiving', deleted 'an authenticated' and added 'a signed', after 'notification', added 'under Subsection (a) of Section 55-9-406 NMSA 1978 or Subsection (b) of Section 55-12-106 NMSA 1978', and after 'assignee', deleted 'under Subsection (a) of Section 55-9-406 NMSA 1978 an authenticated' and added 'a signed'.