Innocent owners.

A. The property of an innocent owner, as provided in this section, shall not be forfeited. B. A person who claims to be an innocent owner has the burden of production to show that the person: (1) holds a legal right, title or interest in the property seized; and (2) held an ownership interest in the seized property at the time the illegal conduct that gave rise to the seizure of the property occurred or was a bona fide purchaser for fair value. C. The state shall immediately return property to an established innocent owner who has an interest in homesteaded property, a motor vehicle valued at less than ten thousand dollars ($10,000) or a conveyance that is encumbered by a security interest that was perfected pursuant to state law or that is subject to a lease or rental agreement, unless the secured party or lessor had actual knowledge of the criminal act upon which the forfeiture was based. D. If a person establishes that the person is an innocent owner pursuant to Subsection B of this section and the state pursues a forfeiture proceeding with respect to that person's property, other than property described in Subsection D of Section 31- 27-7 NMSA 1978, to successfully forfeit the property, the state shall prove by clear and convincing evidence that the innocent owner had actual knowledge of the underlying crime giving rise to the forfeiture. E. A person who acquired an ownership interest in property subject to forfeiture after the commission of a crime that gave rise to the forfeiture and who claims to be an innocent owner has the burden of production to show that the person has legal right, title or interest in the property seized under this section. F. If a person establishes that the person is an innocent owner as provided in Subsection B of this section and the state pursues a forfeiture proceeding against the person's property, to successfully forfeit the property, the state shall prove by clear and convincing evidence that at the time the person acquired the property or an interest in the property, the person: (1) had actual knowledge that the property was subject to forfeiture; or (2) was not a bona fide purchaser who was without notice of any defect in title and who gave valuable consideration. G. If the state fails to meet its burdens as provided in Subsections C and D of this section, the court shall find that the person is an innocent owner and shall order the state to relinquish all claims of title to the innocent owner's property without delay and the property shall be released without assessment of fees or costs. H. Seized property that is firearms, ammunition or explosives subject to forfeiture under the protections of this section and that is not returned to an innocent owner shall be destroyed upon a motion by the law enforcement agency and an order of the court.