N.M. Stat. § 58-23-23
Purchase of bonds; cancellation; purchase price.
The council, subject to existing agreements with bondholders, has the power to
purchase bonds of the council out of any funds available for that purpose, which may
thereupon be canceled, at any reasonable price which, if the bonds are then
redeemable, shall not exceed the applicable redemption price plus accrued interest to
the next interest payment date thereon.