N.M. Stat. § 59A-53-14
Closure of fire department.
A. If any fire department operated by a municipality or county fire district should go
out of existence or for any reason cease to operate and function for a period of ninety
days, title to all firefighting equipment and apparatus paid for in whole with distributions
from the fire protection fund and held by or for the benefit of the fire department shall
vest in the marshal and all money distributed from the fire protection fund and held by or
for the fire department shall revert to the fire protection fund. Any person having custody
or control of any such firefighting equipment and apparatus shall forthwith deliver it as
directed by the marshal, and any person having custody or control of the money shall
forthwith remit it to the state treasurer, who shall again deposit the money in the state
treasury to the credit of the fire protection fund. An action to recover the possession and
control of such firefighting equipment and apparatus, or the money, may be commenced
by the attorney general or the district attorney in the county in which the equipment and
apparatus or money are situate upon the filing with the officer of a verified statement of
the circumstances.
B. Notwithstanding the provisions of Subsection A of this section, money distributed
from the fire protection fund needed to pay debt service on bonds or other obligations
issued by or on behalf of a fire department or fire district may be used to pay such debt
service, and the marshal and the state treasurer shall continue to make distributions
from the fire protection fund for and on behalf of the fire department or fire district until
the bonds or other obligations are paid in full.