TOD SECURITY REGISTRATION

NMSA 1978 ch. 45, art. 6, pt. 3

in effect

NMSA 1978, § 45-6-301 Definitions

45-6-301. Definitions As used in Sections 45-6-301 through 45-6-311 NMSA 1978: A. "beneficiary form" means a registration of a security that indicates the present owner of the security and the intention of the owner regarding the person who will become the owner of the security upon the death of the owner; B. "register", including its derivatives, means to issue a certificate showing the ownership of a certificated security or, in the case of an uncertificated security, to initiate or transfer an account showing ownership of securities; C. "registering entity" means a person who originates or transfers a security title by registration, and includes a broker maintaining security accounts for customers and a transfer agent or other person acting for or as an issuer of securities; D. "security" means a share, participation or other interest in property, in a business or in an obligation of an enterprise or other issuer, and includes a certificated security, an uncertificated security and a security account; and E. "security account" means: (1) a reinvestment account associated with a security, a securities account with a broker, a cash balance in a brokerage account, cash, interest, earnings or dividends earned or declared on a security in an account, a reinvestment account or a brokerage account, whether or not credited to the account before the owner's death; (2) a cash balance or other property held for or due to the owner of a security as a replacement for or product of an account security, whether or not credited to the account before the owner's death; or (3) a natural person's investment, management or custody account with a trust company or bank with trust powers, including securities in the account, a cash balance in the account and cash, cash equivalents, interest, earnings or dividends earned or declared on a security in the account, whether or not credited to the account before the owner's death. Nothing in this paragraph affects interests in real property. 1978 Comp., § 45-6-301, enacted by Laws 1992, ch. 66, § 37; 2008, ch. 8, § 1.

NMSA 1978, § 45-6-302 Registration in beneficiary form; sole or joint tenancy ownership

45-6-302. Registration in beneficiary form; sole or joint tenancy ownership Only individuals whose registration of a security shows sole ownership by one individual or multiple ownership by two or more with right of survivorship, rather than as tenants in common, may obtain registration in beneficiary form. Multiple owners of a security registered in beneficiary form hold as joint tenants with right of survivorship, as tenants by the entireties or as owners of community property held in survivorship form, and not as tenants in common. 1978 Comp., § 45-6-302, enacted by Laws 1992, ch. 66, § 38.

NMSA 1978, § 45-6-303 Registration in beneficiary form; applicable law

45-6-303. Registration in beneficiary form; applicable law A security may be registered in beneficiary form if the form is authorized by this or a similar statute of the state of organization of the issuer or registering entity, the location of the registering entity's principal office, the office of its transfer agent or its office making the registration or by this or a similar statute of the law of the state listed as the owner's address at the time of registration. A registration governed by the law of a jurisdiction in which this or similar legislation is not in force or was not in force when a registration in beneficiary form was made is nevertheless presumed to be valid and authorized as a matter of contract law. 1978 Comp., § 45-6-303, enacted by Laws 1992, ch. 66, § 39.

NMSA 1978, § 45-6-304 Origination of registration in beneficiary form

45-6-304. Origination of registration in beneficiary form A security, whether evidenced by certificate or account, is registered in beneficiary form when the registration includes a designation of a beneficiary to take the ownership at the death of the owner or the deaths of all multiple owners. 1978 Comp., § 45-6-304, enacted by Laws 1992, ch. 66, § 40.

NMSA 1978, § 45-6-305 Form of registration in beneficiary form

45-6-305. Form of registration in beneficiary form Registration in beneficiary form may be shown by the words "transfer on death" or the abbreviation "TOD", or by the words "pay on death" or the abbreviation "POD", after the name of the registered owner and before the name of a beneficiary. 1978 Comp., § 45-6-305, enacted by Laws 1992, ch. 66, § 41.

NMSA 1978, § 45-6-306 Effect of registration in beneficiary form

45-6-306. Effect of registration in beneficiary form The designation of a TOD beneficiary on a registration in beneficiary form has no effect on ownership until the owner's death. A registration of a security in beneficiary form may be canceled or changed at any time by the sole owner or all then surviving owners without the consent of the beneficiary. 1978 Comp., § 45-6-306, enacted by Laws 1992, ch. 66, § 42.

NMSA 1978, § 45-6-307 Ownership of [on] death of owner

45-6-307. Ownership of [on] death of owner On death of a sole owner or the last to die of all multiple owners, ownership of securities registered in beneficiary form passes to the beneficiary or beneficiaries who survive all owners. On proof of death of all owners and compliance with any applicable requirements of the registering entity, a security registered in beneficiary form may be reregistered in the name of the beneficiary or beneficiaries who survived the death of all owners. Until division of the security after the death of all owners, multiple beneficiaries surviving the death of all owners hold their interests as tenants in common. If no beneficiary survives the death of all owners, the security belongs to the estate of the deceased sole owner or the estate of the last to die of all multiple owners. 1978 Comp., § 45-6-307, enacted by Laws 1992, ch. 66, § 43.

NMSA 1978, § 45-6-308 Protection of registering entity

45-6-308. Protection of registering entity A. A registering entity is not required to offer or to accept a request for security registration in beneficiary form. If a registration in beneficiary form is offered by a registering entity, the owner requesting registration in beneficiary form assents to the protections given to the registering entity by Sections 45-6-301 through 45-6-311 NMSA 1978. B. By accepting a request for registration of a security in beneficiary form, the registering entity agrees that the registration will be implemented on death of the deceased owner as provided in Sections 45-6-301 through 45-6-311 NMSA 1978. C. A registering entity is discharged from all claims to a security by the estate, creditors, heirs or devisees of a deceased owner if it registers a transfer of the security in accordance with Section 45-6-307 NMSA 1978 and does so in good faith reliance on: (1) the registration; (2) Sections 45-6-301 through 45-6-311 NMSA 1978; and (3) information provided to it by affidavit of the personal representative of the deceased owner, or by the surviving beneficiary or by the surviving beneficiary's representative or by the surviving beneficiary's representatives, or other information available to the registering entity. D. The protections of Sections 45-6-301 through 45-6-311 NMSA 1978 do not extend to a reregistration or payment made after a registering entity has received written notice from any claimant to any interest in the security objecting to implementation of a registration in beneficiary form. No other notice or other information available to the registering entity affects its right to protection under Sections 45-6-301 through 45-6-311 NMSA 1978. E. The protection provided by Sections 45-6-301 through 45-6-311 NMSA 1978 to the registering entity of a security does not affect the rights of beneficiaries in disputes between themselves and other claimants to ownership of the security transferred or its value or proceeds. 1978 Comp., § 45-6-308, enacted by Laws 1992, ch. 66, § 44.

NMSA 1978, § 45-6-309 Nontestamentary transfer on death

45-6-309. Nontestamentary transfer on death A transfer on death resulting from a registration in beneficiary form is effective by reason of the contract regarding the registration between the owner and the registering entity and Sections 45-6-301 through 45-6-311 NMSA 1978 and is not testamentary. 1978 Comp., § 45-6-309, enacted by Laws 1992, ch. 66, § 45; 2005, ch. 143, § 4.

NMSA 1978, § 45-6-310 Terms, conditions and forms for registration

45-6-310. Terms, conditions and forms for registration A. A registering entity offering to accept registrations in beneficiary form may establish the terms and conditions under which it will receive requests for: (1) registrations in beneficiary form; and (2) implementation of registrations in beneficiary form, including requests for cancellation of previously registered TOD beneficiary designations and requests for reregistration to effect a change of beneficiary. B. The terms and conditions established under Subsection A of this section may provide for proving death, avoiding or resolving any problems concerning fractional shares, designating primary and contingent beneficiaries and substituting a named beneficiary's descendants to take in the place of the named beneficiary in the event of the beneficiary's death. Substitution may be indicated by appending to the name of the primary beneficiary the letters LDPS, standing for "lineal descendants per stirpes". This designation substitutes a deceased beneficiary's descendants who survive the owner for a beneficiary who fails to so survive, the descendants to be identified and to share in accordance with the law of the beneficiary's domicile at the owner's death governing inheritance by descendants of an intestate. Other forms of identifying beneficiaries who are to take on one or more contingencies, and rules for providing proofs and assurances needed to satisfy reasonable concerns by registering entities regarding conditions and identities relevant to accurate implementation of registrations in beneficiary form, may be contained in a registering entity's terms and conditions. C. The following are illustrations of registrations in beneficiary form which a registering entity may authorize: (1) sole owner-sole beneficiary: John S. Brown TOD (or POD) John S. Brown Jr.; (2) multiple owners-sole beneficiary: John S. Brown Mary B. Brown JT TEN TOD John S. Brown Jr.; and (3) multiple owners-primary and secondary (substituted) beneficiaries: John S. Brown Mary B. Brown JT TEN TOD John S. Brown Jr. SUB BENE Peter Q. Brown or John S. Brown Mary B. Brown JT TEN TOD John S. Brown Jr. LDPS. 1978 Comp., § 45-6-310, enacted by Laws 1992, ch. 66, § 46.

NMSA 1978, § 45-6-311 Applicability

45-6-311. Applicability Sections 45-6-301 through 45-6-311 NMSA 1978 apply to registrations of securities in beneficiary form made before or after July 1, 1992, by decedents dying on or after July 1, 1992. 1978 Comp., § 45-6-311, enacted by Laws 1992, ch. 66, § 47.

Source: New Mexico Compilation Commission (nmonesource.com)URL: https://nmonesource.com/nmos/nmsa-unanno/en/item/18546/index.doFetched: 10/20/2026