Colorado Revised Statutes 2024
TITLE 4 - UNIFORM COMMERCIAL CODE
ARTICLE 9 - SECURED TRANSACTIONS (C.R.S. 4-9-101 et seq.)
Source: Office of Legislative Legal Services, Colorado General Assembly
Certified CRS 2024, Title 4 PDF (crs2024-title-04.pdf); Article 9 extracted.
Retrieved 2026-07-10.
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ARTICLE 9
Secured Transactions
Editor's note: (1)  The numbering and sequencing of C.R.S. subsections do not
necessarily correspond with the numbering and sequencing of subsections in the uniform act.
(2)  This article was numbered as article 9 of chapter 155, C.R.S. 1963. The provisions of
this article were repealed and reenacted in 2001, resulting in the addition, relocation, and
elimination of sections as well as subject matter. For amendments to this article prior to 2001,
consult the Colorado statutory research explanatory note and the table itemizing the replacement
volumes and supplements to the original volume of C.R.S. 1973 beginning on page vii in the
front of this volume. Former C.R.S. section numbers are shown in editor's notes following those
sections that were relocated. For a detailed comparison of this article, see the comparative tables
located in the back of the index.
Law reviews: For article, "Lien and Security Interest Provision of AAPL Model
Operating Agreement", see 13 Colo. Law. 1216 (1984); for a discussion of a Tenth Circuit
decision dealing with secured transactions, see 66 Den. U. L. Rev. 795 (1989); for article,
"Mastering The Maze of Secured Transactions - Part 1", see 21 Colo. Law. 2329 (1992); for
article, "Remastering the Maze: Revisions to UCC Article 9 Filing Provisions", see 25 Colo.
Law. 3 (June 1996); for article, "Introducing Revised Article 9 of the Uniform Commercial
Code", see 30 Colo. Law. 9 (Sept. 2001); for article, "Perfecting Security Interests in Intellectual
Property", see 32 Colo. Law. 85 (April 2003).
PART 1
GENERAL PROVISIONS
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4-9-101.  Short title. This article may be cited as the "Uniform Commercial Code -
Secured Transactions".
Source: L. 2001: Entire article R&RE, p. 1313, § 1, effective July 1.
Editor's note: This section is similar to former § 4-9-101 as it existed prior to 2001.
4-9-102.  Definitions and index of definitions. (a)  In this article 9:
(1)  "Accession" means goods that are physically united with other goods in such a
manner that the identity of the original goods is not lost.
(2)  "Account", except as used in "account for", "account statement", "account to",
"commodity account" in subsection (a)(14) of this section, "customer's account", "deposit
account" in subsection (a)(29) of this section, "on account of", and "statement of account",
means a right to payment of a monetary obligation, whether or not earned by performance, (i) for
property that has been or is to be sold, leased, licensed, assigned, or otherwise disposed of; (ii)
for services rendered or to be rendered; (iii) for a policy of insurance issued or to be issued; (iv)
for a secondary obligation incurred or to be incurred; (v) for energy provided or to be provided;
(vi) for the use or hire of a vessel under a charter or other contract; (vii) arising out of the use of
a credit or charge card or information contained on or for use with the card; or (viii) as winnings
in a lottery or other game of chance operated or sponsored by a state, governmental unit of a
state, or person licensed or authorized to operate the game by a state or governmental unit of a
state. The term includes controllable accounts and health-care-insurance receivables. The term
does not include (i) chattel paper; (ii) commercial tort claims; (iii) deposit accounts; (iv)
investment property; (v) letter-of-credit rights or letters of credit; (vi) rights to payment for
money or funds advanced or sold, other than rights arising out of the use of a credit or charge
card or information contained on or for use with the card; or (vii) rights to payment evidenced by
an instrument.
(3)  "Account debtor" means a person obligated on an account, chattel paper, or general
intangible. The term does not include persons obligated to pay a negotiable instrument, even if
the negotiable instrument evidences chattel paper.
(4)  "Accounting", except as used in "accounting for", means a record:
(A)  Signed by a secured party;
(B)  Indicating the aggregate unpaid secured obligations as of a date not more than thirty-
five days earlier or thirty-five days later than the date of the record; and
(C)  Identifying the components of the obligations in reasonable detail.
(5)  "Agricultural lien" means an interest in farm products:
(A)  Which secures payment or performance of an obligation for:
(i)  Goods or services furnished in connection with a debtor's farming operation; or
(ii)  Rent on real property leased by a debtor in connection with its farming operation;
(B)  Which is created by statute in favor of a person that:
(i)  In the ordinary course of its business furnished goods or services to a debtor in
connection with a debtor's farming operation; or
(ii)  Leased real property to a debtor in connection with the debtor's farming operation;
and
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(C)  Whose effectiveness does not depend on the person's possession of the personal
property.
(6)  "As-extracted collateral" means:
(A)  Oil, gas, minerals, or other substances of value that may be extracted from the earth
that are subject to a security interest that:
(i)  Is created by a debtor having an interest in the minerals or such other substances
before extraction; and
(ii)  Attaches to the minerals or such other substances as extracted; or
(B)  Accounts arising out of the sale at the wellhead or minehead of oil, gas, minerals, or
other substances of value that may be extracted from the earth in which the debtor had an interest
before extraction.
(7)  Repealed.
(7.3)  "Assignee", except as used in "assignee for benefit of creditors", means a person (i)
in whose favor a security interest that secures an obligation is created or provided for under a
security agreement, whether or not the obligation is outstanding or (ii) to which an account,
chattel paper, payment intangible, or promissory note has been sold. The term includes a person
to which a security interest has been transferred by a secured party.
(7.5)  "Assignor" means a person that (i) under a security agreement creates or provides
for a security interest that secures an obligation or (ii) sells an account, chattel paper, payment
intangible, or promissory note. The term includes a secured party that has transferred a security
interest to another person.
(8)  "Bank" means an organization that is engaged in the business of banking. The term
includes savings banks, savings and loan associations, credit unions, and trust companies.
(8.5)  "Business day" means any day other than Saturday, Sunday, or a state of Colorado
or federal legal holiday.
(9)  "Cash proceeds" means proceeds that are money, checks, deposit accounts, or the
like.
(10)  "Certificate of title" means a certificate of title with respect to which a statute
provides for the security interest in question to be indicated on the certificate as a condition or
result of the security interest's obtaining priority over the rights of a lien creditor with respect to
the collateral. The term includes another record maintained as an alternative to a certificate of
title by the governmental unit that issues certificates of title if a statute permits the security
interest in question to be indicated on the record as a condition or result of the security interest's
obtaining priority over the rights of a lien creditor with respect to the collateral.
(11)  "Chattel paper" means:
(A)  A right to payment of a monetary obligation secured by specific goods, if the right to
payment and security agreement are evidenced by a record; or
(B)  A right to payment of a monetary obligation owed by a lessee under a lease
agreement with respect to specific goods and a monetary obligation owed by the lessee in
connection with the transaction giving rise to the lease, if:
(i)  The right to payment and lease agreement are evidenced by a record; and
(ii)  The predominant purpose of the transaction giving rise to the lease was to give the
lessee the right to possession and use of the goods. The term does not include a right to payment
arising out of a charter or other contract involving the use or hire of a vessel or a right to
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payment arising out of the use of a credit or charge card or information contained on or for use
with the card.
(12)  "Collateral" means the property subject to a security interest or agricultural lien.
The term includes:
(A)  Proceeds to which a security interest attaches;
(B)  Accounts, chattel paper, payment intangibles, and promissory notes that have been
sold; and
(C)  Goods that are the subject of a consignment.
(13)  "Commercial tort claim" means a claim arising in tort with respect to which:
(A)  The claimant is an organization; or
(B)  The claimant is an individual and the claim:
(i)  Arose in the course of the claimant's business or profession; and
(ii)  Does not include damages arising out of personal injury to or the death of an
individual.
(14)  "Commodity account" means an account maintained by a commodity intermediary
in which a commodity contract is carried for a commodity customer.
(15)  "Commodity contract" means a commodity futures contract, an option on a
commodity futures contract, a commodity option, or another contract if the contract or option is:
(A)  Traded on or subject to the rules of a board of trade that has been designated as a
contract market for such a contract pursuant to federal commodities laws; or
(B)  Traded on a foreign commodity board of trade, exchange, or market, and is carried
on the books of a commodity intermediary for a commodity customer.
(16)  "Commodity customer" means a person for which a commodity intermediary
carries a commodity contract on its books.
(17)  "Commodity intermediary" means a person that:
(A)  Is registered as a futures commission merchant under federal commodities law; or
(B)  In the ordinary course of its business provides clearance or settlement services for a
board of trade that has been designated as a contract market pursuant to federal commodities
law.
(18)  "Communicate" means:
(A)  To send a written or other tangible record;
(B)  To transmit a record by any means agreed upon by the persons sending and receiving
the record; or
(C)  In the case of transmission of a record to or by a filing office, to transmit a record by
any means prescribed by filing-office rule.
(19)  "Consignee" means a merchant to which goods are delivered in a consignment.
(20)  "Consignment" means a transaction, regardless of its form, in which a person
delivers goods to a merchant for the purpose of sale and:
(A)  The merchant:
(i)  Deals in goods of that kind under a name other than the name of the person making
delivery;
(ii)  Is not an auctioneer; and
(iii)  Is not generally known by its creditors to be substantially engaged in selling the
goods of others;
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(B)  With respect to each delivery, the aggregate value of the goods is one thousand
dollars or more at the time of delivery;
(C)  The goods are not consumer goods immediately before delivery; and
(D)  The transaction does not create a security interest that secures an obligation.
(21)  "Consignor" means a person that delivers goods to a consignee in a consignment.
(22)  "Consumer debtor" means a debtor in a consumer transaction.
(22.5)  "Consumer deposit account" means a deposit account held in the name of one or
more natural persons and used by him, her, or them primarily for personal, family, or household
purposes.
(23)  "Consumer goods" means goods that are used or bought for use primarily for
personal, family, or household purposes.
(24)  "Consumer-goods transaction" means a consumer transaction in which:
(A)  An individual incurs an obligation primarily for personal, family, or household
purposes; and
(B)  A security interest in consumer goods secures the obligation.
(25)  "Consumer obligor" means an obligor who is an individual and who incurred the
obligation as part of a transaction entered into primarily for personal, family, or household
purposes.
(26)  "Consumer transaction" means a transaction in which (i) an individual incurs an
obligation primarily for personal, family, or household purposes, (ii) a security interest secures
the obligation, and (iii) the collateral is held or acquired primarily for personal, family, or
household purposes. The term includes consumer-goods transactions.
(27)  "Continuation statement" means an amendment of a financing statement which:
(A)  Identifies, by its file number, the initial financing statement to which it relates; and
(B)  Indicates that it is a continuation statement for, or that it is filed to continue the
effectiveness of, the identified financing statement.
(27.5)  "Controllable account" means an account evidenced by a controllable electronic
record that provides that the account debtor undertakes to pay the person that has control under
section 4-12-105 of the controllable electronic record.
(27.7)  "Controllable payment intangible" means a payment intangible evidenced by a
controllable electronic record that provides that the account debtor undertakes to pay the person
that has control under section 4-12-105 of the controllable electronic record.
(28)  "Debtor" means:
(A)  A person having an interest, other than a security interest or other lien, in the
collateral, whether or not the person is an obligor;
(B)  A seller of accounts, chattel paper, payment intangibles, or promissory notes; or
(C)  A consignee.
(29)  "Deposit account" means a demand, time, savings, passbook, or similar account
maintained with a bank. The term does not include investment property or accounts evidenced
by an instrument.
(30)  "Document" means a document of title or a receipt of the type described in section
4-7-201 (b).
(31)  Repealed.
(32)  "Encumbrance" means a right, other than an ownership interest, in real property.
The term includes mortgages and other liens on real property.
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(33)  "Equipment" means goods other than inventory, farm products, or consumer goods.
(34)  "Farm products" means goods, other than standing timber, with respect to which the
debtor is engaged in a farming operation and which are:
(A)  Crops grown, growing, or to be grown, including:
(i)  Crops produced on trees, vines, and bushes; and
(ii)  Aquatic goods produced in aquacultural operations;
(B)  Livestock, born or unborn, including aquatic goods produced in aquacultural
operations;
(C)  Supplies used or produced in a farming operation; or
(D)  Products of crops or livestock in their unmanufactured states.
(35)  "Farming operation" means raising, cultivating, propagating, fattening, grazing, or
any other farming, livestock, or aquacultural operation.
(36)  "File number" means the number assigned to an initial financing statement pursuant
to section 4-9-519 (a).
(37)  "Filing office" means an office designated in section 4-9-501 as the place to file a
financing statement.
(38)  "Filing-office rule" means a rule adopted pursuant to section 4-9-526.
(39)  "Financing statement" means a record or records composed of an initial financing
statement and any filed record relating to the initial financing statement.
(40)  "Fixture filing" means the filing of a financing statement covering goods that are or
are to become fixtures and satisfying section 4-9-502 (a) and (b). The term includes the filing of
a financing statement covering goods of a transmitting utility which are or are to become
fixtures.
(41)  "Fixtures" means goods that have become so related to particular real property that
an interest in them arises under real property law.
(42)  "General intangible" means any personal property, including things in action, other
than accounts, chattel paper, commercial tort claims, deposit accounts, documents, goods,
instruments, investment property, letter-of-credit rights, letters of credit, money, and oil, gas, or
other minerals before extraction. The term includes controllable electronic records, payment
intangibles, and software.
(43)  "Good faith" means honesty in fact and the observance of reasonable commercial
standards of fair dealing.
(44)  "Goods" means all things that are movable when a security interest attaches. The
term includes (i) fixtures, (ii) standing timber that is to be cut and removed under a conveyance
or contract for sale, (iii) the unborn young of animals, (iv) crops grown, growing, or to be grown,
even if the crops are produced on trees, vines, or bushes, and (v) manufactured homes. The term
also includes a computer program embedded in goods and any supporting information provided
in connection with a transaction relating to the program if (i) the program is associated with the
goods in such a manner that it customarily is considered part of the goods, or (ii) by becoming
the owner of the goods, a person acquires a right to use the program in connection with the
goods. The term does not include a computer program embedded in goods that consist solely of
the medium in which the program is embedded. The term also does not include accounts, chattel
paper, commercial tort claims, deposit accounts, documents, general intangibles, instruments,
investment property, letter-of-credit rights, letters of credit, money, or oil, gas, or other minerals
before extraction.
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(45)  "Governmental unit" means a subdivision, agency, department, county, parish,
municipality, or other unit of the government of the United States, a state, or a foreign country.
The term includes an organization having a separate corporate existence if the organization is
eligible to issue debt on which interest is exempt from income taxation under the laws of the
United States.
(46)  "Health-care-insurance receivable" means an interest in or claim under a policy of
insurance that is a right to payment of a monetary obligation for health-care goods or services
provided or to be provided.
(47)  "Instrument" means a negotiable instrument or any other writing that evidences a
right to the payment of a monetary obligation, is not itself a security agreement or lease, and is
of a type that in the ordinary course of business is transferred by delivery with any necessary
indorsement or assignment. The term does not include (i) investment property; (ii) letters of
credit; (iii) writings that evidence a right to payment arising out of the use of a credit or charge
card or information contained on or for use with the card; or (iv) writings that evidence chattel
paper.
(48)  "Inventory" means goods, other than farm products, which:
(A)  Are leased by a person as lessor;
(B)  Are held by a person for sale or lease or to be furnished under a contract of service;
(C)  Are furnished by a person under a contract of service; or
(D)  Consist of raw materials, work in process, or materials used or consumed in a
business.
(49)  "Investment property" means a security, whether certificated or uncertificated,
security entitlement, securities account, commodity contract, or commodity account.
(50)  "Jurisdiction of organization", with respect to a registered organization, means the
jurisdiction under whose law the organization is organized.
(51)  "Letter-of-credit right" means a right to payment or performance under a letter of
credit, whether or not the beneficiary has demanded or is at the time entitled to demand payment
or performance. The term does not include the right of a beneficiary to demand payment or
performance under a letter of credit.
(52)  "Lien creditor" means:
(A)  A creditor that has acquired a lien on the property involved by attachment, levy, or
the like;
(B)  An assignee for benefit of creditors from the time of assignment;
(C)  A trustee in bankruptcy from the date of the filing of the petition; or
(D)  A receiver in equity from the time of appointment.
(53)  "Manufactured home" means a structure, transportable in one or more sections,
which, in the traveling mode, is eight body feet or more in width or forty body feet or more in
length, or, when erected on site, is three hundred twenty or more square feet, and which is built
on a permanent chassis and designed to be used as a dwelling with or without a permanent
foundation when connected to the required utilities, and includes the plumbing, heating, air-
conditioning, and electrical systems contained therein. The term includes any structure that
meets all of the requirements of this paragraph (53) except the size requirements and with
respect to which the manufacturer voluntarily files a certification required by the United States
secretary of housing and urban development and complies with the standards established under
Title 42 of the United States Code.
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(54)  "Manufactured-home transaction" means a secured transaction:
(A)  That creates a purchase-money security interest in a manufactured home, other than
a manufactured home held as inventory; or
(B)  In which a manufactured home, other than a manufactured home held as inventory,
is the primary collateral.
(54.5)  "Money" has the meaning in section 4-1-201 (b)(23), but does not include a
deposit account.
(55)  "Mortgage" means a consensual interest in real property, including fixtures, which
secures payment or performance of an obligation.
(56)  "New debtor" means a person that becomes bound as debtor under section 4-9-203
(d) by a security agreement previously entered into by another person.
(57)  "New value" means (i) money, (ii) money's worth in property, services, or new
credit, or (iii) release by a transferee of an interest in property previously transferred to the
transferee. The term does not include an obligation substituted for another obligation.
(58)  "Noncash proceeds" means proceeds other than cash proceeds.
(59)  "Obligor" means a person that, with respect to an obligation secured by a security
interest in or an agricultural lien on the collateral, (i) owes payment or other performance of the
obligation, (ii) has provided property other than the collateral to secure payment or other
performance of the obligation, or (iii) is otherwise accountable in whole or in part for payment or
other performance of the obligation. The term does not include issuers or nominated persons
under a letter of credit.
(60)  "Original debtor", except as used in section 4-9-310 (c), means a person that, as
debtor, entered into a security agreement to which a new debtor has become bound under section
4-9-203 (d).
(61)  "Payment intangible" means a general intangible under which the account debtor's
principal obligation is a monetary obligation. The term includes a controllable payment
intangible.
(62)  "Person related to", with respect to an individual, means:
(A)  The spouse of the individual;
(B)  A brother, brother-in-law, sister, or sister-in-law of the individual;
(C)  An ancestor or lineal descendant of the individual or the individual's spouse; or
(D)  Any other relative, by blood or marriage, of the individual or the individual's spouse
who shares the same home with the individual.
(63)  "Person related to", with respect to an organization, means:
(A)  A person directly or indirectly controlling, controlled by, or under common control
with the organization;
(B)  An officer or director of, or a person performing similar functions with respect to,
the organization;
(C)  An officer or director of, or a person performing similar functions with respect to, a
person described in subparagraph (A) of this paragraph (63);
(D)  The spouse of an individual described in subparagraph (A), (B), or (C) of this
paragraph (63); or
(E)  An individual who is related by blood or marriage to an individual described in
subparagraph (A), (B), (C), or (D) of this paragraph (63) and shares the same home with the
individual.
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(64)  "Proceeds", except as used in section 4-9-609 (b), means the following property:
(A)  Whatever is acquired upon the sale, lease, license, exchange, or other disposition of
collateral;
(B)  Whatever is collected on, or distributed on account of, collateral;
(C)  Rights arising out of collateral;
(D)  To the extent of the value of collateral, claims arising out of the loss, nonconformity,
or interference with the use of, defects or infringement of rights in, or damage to, the collateral;
or
(E)  To the extent of the value of collateral and to the extent payable to the debtor or the
secured party, insurance payable by reason of the loss or nonconformity of, defects or
infringement of rights in, or damage to, the collateral.
(65)  "Promissory note" means an instrument that evidences a promise to pay a monetary
obligation, does not evidence an order to pay, and does not contain an acknowledgment by a
bank that the bank has received for deposit a sum of money or funds.
(66)  "Proposal" means a record signed by a secured party which includes the terms on
which the secured party is willing to accept collateral in full or partial satisfaction of the
obligation it secures pursuant to sections 4-9-620, 4-9-621, and 4-9-622.
(67)  Reserved.
(68)  "Public organic record" means a record that is available to the public for inspection
and is:
(A)  A record consisting of the record initially filed with or issued by a state or the
United States to form or organize an organization and any record filed with or issued by the state
or the United States that amends or restates the initial record;
(B)  An organic record of a business trust consisting of the record initially filed with a
state and any record filed with the state that amends or restates the initial record, if a statute of
the state governing business trusts requires that the record be filed with the state; or
(C)  A record consisting of legislation enacted by the legislature of a state or the congress
of the United States that forms or organizes an organization, any record amending the
legislation, and any record filed with or issued by the state or the United States that amends or
restates the name of the organization.
(69)  Repealed.
(70)  Reserved.
(71)  "Pursuant to commitment", with respect to an advance made or other value given by
a secured party, means pursuant to the secured party's obligation, whether or not a subsequent
event of default or other event not within the secured party's control has relieved or may relieve
the secured party from its obligation.
(72)  "Record", except as used in "for record", "of record", "record or legal title", and
"record owner", means information that is inscribed on a tangible medium or which is stored in
an electronic or other medium and is retrievable in perceivable form.
(73)  "Registered organization" means an organization formed or organized solely under
the law of a single state or the United States by the filing of a public organic record with, the
issuance of a public organic record by, or the enactment of legislation by the state or the United
States. The term includes a business trust that is formed or organized under the law of a single
state if a statute of the state governing business trusts requires that the business trust's organic
record be filed with the state.
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(74)  "Secondary obligor" means an obligor to the extent that:
(A)  The obligor's obligation is secondary; or
(B)  The obligor has a right of recourse with respect to an obligation secured by collateral
against the debtor, another obligor, or property of either.
(75)  "Secured party" means:
(A)  A person in whose favor a security interest is created or provided for under a
security agreement, whether or not any obligation to be secured is outstanding;
(B)  A person that holds an agricultural lien;
(C)  A consignor;
(D)  A person to which accounts, chattel paper, payment intangibles, or promissory notes
have been sold;
(E)  A trustee, indenture trustee, agent, collateral agent, or other representative in whose
favor a security interest or agricultural lien is created or provided for; or
(F)  A person that holds a security interest arising under section 4-2-401, 4-2-505, 4-2-
711 (3), 4-2.5-508 (5), 4-4-210, or 4-5-117.5.
(76)  "Security agreement" means an agreement that creates or provides for a security
interest.
(77)  Repealed.
(78)  "Software" means a computer program and any supporting information provided in
connection with a transaction relating to the program. The term does not include a computer
program that is included in the definition of goods.
(79)  "State" means a state of the United States, the District of Columbia, Puerto Rico,
the United States Virgin Islands, or any territory or insular possession subject to the jurisdiction
of the United States.
(80)  "Supporting obligation" means a letter-of-credit right or secondary obligation that
supports the payment or performance of an account, chattel paper, a document, a general
intangible, an instrument, or investment property.
(81)  Repealed.
(82)  "Termination statement" means an amendment of a financing statement which:
(A)  Identifies, by its file number, the initial financing statement to which it relates; and
(B)  Indicates either that it is a termination statement or that the identified financing
statement is no longer effective.
(83)  "Transmitting utility" means a person primarily engaged in the business of:
(A)  Operating a railroad, subway, street railway, or trolley bus;
(B)  Transmitting communications electrically, electromagnetically, or by light;
(C)  Transmitting goods by pipeline or sewer; or
(D)  Transmitting or producing and transmitting electricity, steam, gas, or water.
(b)  "Control" as provided in section 4-7-106 and the following definitions in other
articles apply to this article 9:
"Applicant"Section 4-5-102.
"Beneficiary"Section 4-5-102.
"Broker"Section 4-8-102.
"Certificated security"Section 4-8-102.
"Check"Section 4-3-104.
"Clearing corporation"Section 4-8-102.
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"Contract for sale"Section 4-2-106.
"Controllable electronic record"Section 4-12-102.
"Customer"Section 4-4-104.
"Entitlement holder"Section 4-8-102.
"Financial asset"Section 4-8-102.
"Holder in due course"Section 4-3-302.
"Issuer" (with respect to a letter of credit or
letter-of-credit right)Section 4-5-102.
"Issuer" (with respect to a security)Section 4-8-201.
"Issuer" (with respect to documents of title)Section 4-7-102.
"Lease"Section 4-2.5-103.
"Lease agreement"Section 4-2.5-103.
"Lease contract"Section 4-2.5-103.
"Leasehold interest"Section 4-2.5-103.
"Lessee"Section 4-2.5-103.
"Lessee in ordinary course of business"Section 4-2.5-103.
"Lessor"Section 4-2.5-103.
"Lessor's residual interest"Section 4-2.5-103.
"Letter of credit"Section 4-5-102.
"Merchant"Section 4-2-104.
"Negotiable instrument"Section 4-3-104.
"Nominated person"Section 4-5-102.
"Note"Section 4-3-104.
"Proceeds of a letter of credit"Section 4-5-114.
"Protected purchaser"Section 4-8-303.
"Prove"Section 4-3-103.
"Qualifying purchaser"Section 4-12-102.
"Sale"Section 4-2-106.
"Securities account"Section 4-8-501.
"Securities intermediary"Section 4-8-102.
"Security"Section 4-8-102.
"Security certificate"Section 4-8-102.
"Security entitlement"Section 4-8-102.
"Uncertificated security"Section 4-8-102.
(c)  Article 1 of this title contains general definitions and principles of construction and
interpretation applicable throughout this article.
Source: L. 2001: Entire article R&RE, p. 1313, § 1, effective July 1. L. 2002: IP(a)(5)
and (a)(46) amended, p. 937, § 1, effective August 7. L. 2004: (a)(77) amended, p. 1187, § 5,
effective August 4. L. 2006: (a)(30) and (b) amended, p. 498, § 33, effective September 1. L.
2007: (b) amended, p. 376, § 30, effective August 3. L. 2012: (a)(7)(B), (a)(10), (a)(68), and
(a)(73) amended and (a)(65) and (a)(66) added, (HB 12-1262), ch. 170, p. 595, § 1, effective
July 1, 2013, and (a)(69)(B) added by revision, (HB 12-1262), ch. 170, pp. 595, 609, §§ 1, 18. L.
2023: IP(a), (a)(2), (a)(3), (a)(4)(A), (a)(11), (a)(42), (a)(47), (a)(61), (a)(66), and (b) amended,
Colorado Revised Statutes 2024 Page 241 of  368 Uncertified Printout
(a)(7), (a)(31), (a)(77), and (a)(81) repealed, and (a)(7.3), (a)(7.5), (a)(27.5), (a)(27.7), and
(a)(54.5) added, (SB 23-090), ch. 136, p. 539, § 42, effective August 7.
Editor's note: (1)  The provisions of this section are similar to provisions of several
former sections as they existed prior to 2001. For a detailed comparison, see the comparative
tables located in the back of the index.
(2)  Colorado legislative change: Colorado substituted the phrase "Oil, gas, minerals, or
other substances of value that may be extracted from the earth" for the phrase "Oil, gas, or other
minerals" in subsection (a)(6) and added subsection (a)(8.5). Colorado added clause (ii) in
subsection (a)(11), added subsection (a)(22.5), added the phrase "except as used in section 4-9-
310 (c)," in subsection (a)(60), and added the phrase "except as used in section 4-9-609 (b)," in
subsection (a)(64). Colorado reserved three definitional subsections, (a)(65) through (a)(67); all
subsequent definitions are numbered correspondingly different from the uniform act. Colorado
did not adopt the definition of a "public finance transaction".
(3)  Subsections (65) and (66) are similar to subsections (68) and (69), respectively, as
they existed prior to 2012.
(4)  Subsection (a)(69)(B) provided for the repeal of subsection (69), effective July 1,
2013. (See L. 2012, pp. 595, 609.)
Cross references: For offenses relating to account, see § 18-5-502.
4-9-103.  Purchase-money security interest - application of payments - burden of
establishing - definitions. (a)  In this section:
(1)  "Purchase-money collateral" means goods or software that secures a purchase-money
obligation incurred with respect to that collateral; and
(2)  "Purchase-money obligation" means an obligation of an obligor incurred as all or
part of the price of the collateral or for value given to enable the debtor to acquire rights in or the
use of the collateral if the value is in fact so used.
(b)  A security interest in goods is a purchase-money security interest:
(1)  To the extent that the goods are purchase-money collateral with respect to that
security interest;
(2)  If the security interest is in inventory that is or was purchase-money collateral, also
to the extent that the security interest secures a purchase-money obligation incurred with respect
to other inventory in which the secured party holds or held a purchase-money security interest;
and
(3)  Also to the extent that the security interest secures a purchase-money obligation
incurred with respect to software in which the secured party holds or held a purchase-money
security interest.
(c)  A security interest in software is a purchase-money security interest to the extent that
the security interest also secures a purchase-money obligation incurred with respect to goods in
which the secured party holds or held a purchase-money security interest if:
(1)  The debtor acquired its interest in the software in an integrated transaction in which
it acquired an interest in the goods; and
(2)  The debtor acquired its interest in the software for the principal purpose of using the
software in the goods.
Colorado Revised Statutes 2024 Page 242 of  368 Uncertified Printout
(d)  The security interest of a consignor in goods that are the subject of a consignment is
a purchase-money security interest in inventory.
(e)  In a transaction other than a consumer-goods transaction, if the extent to which a
security interest is a purchase-money security interest depends on the application of a payment to
a particular obligation, the payment must be applied:
(1)  In accordance with any reasonable method of application to which the parties agree;
(2)  In the absence of the parties' agreement to a reasonable method, in accordance with
any intention of the obligor manifested at or before the time of payment; or
(3)  In the absence of an agreement to a reasonable method and a timely manifestation of
the obligor's intention, in the following order:
(A)  To obligations that are not secured; and
(B)  If more than one obligation is secured, to obligations secured by purchase-money
security interests in the order in which those obligations were incurred.
(f)  In a transaction other than a consumer-goods transaction, a purchase-money security
interest does not lose its status as such, even if:
(1)  The purchase-money collateral also secures an obligation that is not a purchase-
money obligation;
(2)  Collateral that is not purchase-money collateral also secures the purchase-money
obligation; or
(3)  The purchase-money obligation has been renewed, refinanced, consolidated, or
restructured.
(g)  In a transaction other than a consumer-goods transaction, a secured party claiming a
purchase-money security interest has the burden of establishing the extent to which the security
interest is a purchase-money security interest.
(h)  The limitation of the rules in subsections (e), (f), and (g) of this section to
transactions other than consumer-goods transactions is intended to leave to the court the
determination of the proper rules in consumer-goods transactions. The court may not infer from
that limitation the nature of the proper rule in consumer-goods transactions and may continue to
apply established approaches.
Source: L. 2001: Entire article R&RE, p. 1327, § 1, effective July 1.
Editor's note: This section is similar to former § 4-9-107 as it existed prior to 2001.
4-9-104.  Control of deposit account. (a)  A secured party has control of a deposit
account if:
(1)  The secured party is the bank with which the deposit account is maintained;
(2)  The debtor, secured party, and bank have agreed in a signed record that the bank will
comply with instructions originated by the secured party directing disposition of the funds in the
deposit account without further consent by the debtor;
(3)  The secured party becomes the bank's customer with respect to the deposit account;
or
(4)  Another person, other than the debtor:
(A)  Has control of the deposit account and acknowledges that it has control on behalf of
the secured party; or
Colorado Revised Statutes 2024 Page 243 of  368 Uncertified Printout
(B)  Obtains control of the deposit account after having acknowledged that it will obtain
control of the deposit account on behalf of the secured party.
(b)  A secured party that has satisfied subsection (a) of this section has control, even if
the debtor retains the right to direct the disposition of funds from the deposit account.
Source: L. 2001: Entire article R&RE, p. 1328, § 1, effective July 1. L. 2023: (a)(2) and
(a)(3) amended and (a)(4) added, (SB 23-090), ch. 136, p. 544, § 43, effective August 7.
4-9-105.  Control of electronic copy of record evidencing chattel paper. (a)  A
purchaser has control of an authoritative electronic copy of a record evidencing chattel paper if a
system employed for evidencing the assignment of interests in the chattel paper reliably
establishes the purchaser as the person to which the authoritative electronic copy was assigned.
(b)  A system satisfies subsection (a) of this section if the record or records evidencing
the chattel paper are created, stored, and assigned in a manner that:
(1)  A single authoritative copy of the record or records exists which is unique,
identifiable, and, except as otherwise provided in subsections (a)(4), (a)(5), and (a)(6) of this
section, unalterable;
(2)  The authoritative copy identifies the purchaser as the assignee of the record or
records;
(3)  The authoritative copy is communicated to and maintained by the purchaser or its
designated custodian;
(4)  Copies or amendments that add or change an identified assignee of the authoritative
copy can be made only with the consent of the purchaser;
(5)  Each copy of the authoritative copy and any copy of a copy is readily identifiable as
a copy that is not the authoritative copy; and
(6)  Any amendment of the authoritative copy is readily identifiable as authorized or
unauthorized.
(c)  A system satisfies subsection (a) of this section, and a purchaser has control of an
authoritative electronic copy of a record evidencing chattel paper, if the electronic copy, a record
attached to or logically associated with the electronic copy, or a system in which the electronic
copy is recorded:
(1)  Enables the purchaser readily to identify each electronic copy as either an
authoritative copy or a nonauthoritative copy;
(2)  Enables the purchaser readily to identify itself in any way, including by name,
identifying number, cryptographic key, office, or account number, as the assignee of the
authoritative electronic copy; and
(3)  Gives the purchaser exclusive power, subject to subsection (d) of this section, to:
(A)  Prevent others from adding or changing an identified assignee of the authoritative
electronic copy; and
(B)  Transfer control of the authoritative electronic copy.
(d)  Subject to subsection (e) of this section, a power is exclusive under subsections
(c)(3)(A) and (c)(3)(B) of this section even if:
(1)  The authoritative electronic copy, a record attached to or logically associated with
the authoritative electronic copy, or a system in which the authoritative electronic copy is
Colorado Revised Statutes 2024 Page 244 of  368 Uncertified Printout
recorded limits the use of the authoritative electronic copy or has a protocol programmed to
cause a change, including a transfer or loss of control; or
(2)  The power is shared with another person.
(e)  A power of a purchaser is not shared with another person under subsection (d)(2) of
this section and the purchaser's power is not exclusive if:
(1)  The purchaser can exercise the power only if the power also is exercised by the other
person; and
(2)  The other person:
(A)  Can exercise the power without exercise of the power by the purchaser; or
(B)  Is the transferor to the purchaser of an interest in the chattel paper.
(f)  If a purchaser has the powers specified in subsections (c)(3)(A) and (c)(3)(B) of this
section, the powers are presumed to be exclusive.
(g)  A purchaser has control of an authoritative electronic copy of a record evidencing
chattel paper if another person, other than the transferor to the purchaser of an interest in the
chattel paper:
(1)  Has control of the authoritative electronic copy and acknowledges that it has control
on behalf of the purchaser; or
(2)  Obtains control of the authoritative electronic copy after having acknowledged that it
will obtain control of the electronic copy on behalf of the purchaser.
Source: L. 2001: Entire article R&RE, p. 1329, § 1, effective July 1. L. 2012: Entire
section amended, (HB 12-1262), ch. 170, p. 596, § 2, effective July 1, 2013. L. 2023: (a), IP(b),
(b)(1), (b)(2), (b)(3), and (b)(4) amended and (c), (d), (e), (f), and (g) added, (SB 23-090), ch.
136, p. 544, § 44, effective August 7.
4-9-106.  Control of investment property. (a)  A person has control of a certificated
security, uncertificated security, or security entitlement as provided in section 4-8-106.
(b)  A secured party has control of a commodity contract if:
(1)  The secured party is the commodity intermediary with which the commodity contract
is carried; or
(2)  The commodity customer, secured party, and commodity intermediary have agreed
that the commodity intermediary will apply any value distributed on account of the commodity
contract as directed by the secured party without further consent by the commodity customer.
(c)  A secured party having control of all security entitlements or commodity contracts
carried in a securities account or commodity account has control over the securities account or
commodity account.
Source: L. 2001: Entire article R&RE, p. 1329, § 1, effective July 1.
Editor's note: The provisions of this section are similar to former §§ 4-9-115 (e) and 4-
8-106 as they existed prior to 2001.
4-9-107.  Control of letter-of-credit right. A secured party has control of a letter-of-
credit right to the extent of any right to payment or performance by the issuer or any nominated
Colorado Revised Statutes 2024 Page 245 of  368 Uncertified Printout
person if the issuer or nominated person has consented to an assignment of proceeds of the letter
of credit under section 4-5-114 (c) or otherwise applicable law or practice.
Source: L. 2001: Entire article R&RE, p. 1330, § 1, effective July 1.
4-9-107.5.  Control of controllable electronic record, controllable account, or
controllable payment intangible. (a)  A secured party has control of a controllable electronic
record as provided in section 4-12-105.
(b)  A secured party has control of a controllable account or controllable payment
intangible if the secured party has control of the controllable electronic record that evidences the
controllable account or controllable payment intangible.
Source: L. 2023: Entire section added, (SB 23-090), ch. 136, p. 546, § 45, effective
August 7.
4-9-108.  Sufficiency of description. (a)  Except as otherwise provided in subsections
(c), (d), (e), and (f) of this section, a description of personal or real property is sufficient,
whether or not it is specific, if it reasonably identifies what is described.
(b)  Except as otherwise provided in subsection (d) of this section, a description of
collateral reasonably identifies the collateral if it identifies the collateral by:
(1)  Specific listing;
(2)  Category, including a category determined by use of a numerical or other code
included in forms and formats adopted from time to time by the secretary of state;
(3)  Except as otherwise provided in subsection (e) of this section, a type of collateral
defined in this title;
(4)  Quantity;
(5)  Computational or allocational formula or procedure; or
(6)  Except as otherwise provided in subsection (c) of this section, any other method, if
the identity of the collateral is objectively determinable.
(c)  A description of collateral as "all the debtor's assets" or "all the debtor's personal
property" or using words of similar import does not reasonably identify the collateral.
(d)  Except as otherwise provided in subsection (e) of this section, a description of a
security entitlement, securities account, or commodity account is sufficient if it describes:
(1)  The collateral by those terms or as investment property; or
(2)  The underlying financial asset or commodity contract.
(e)  A description only by type of collateral defined in this title is an insufficient
description of:
(1)  A commercial tort claim;
(2)  In a consumer transaction, consumer goods, a security entitlement, a securities
account, or a commodity account; or
(3)  A deposit account.
(f)  Any description in the security agreement of personal property that includes
consumer goods is sufficient as to the consumer goods only if it specifically identifies and
itemizes such consumer goods.
Colorado Revised Statutes 2024 Page 246 of  368 Uncertified Printout
Source: L. 2001: Entire article R&RE, p. 1330, § 1, effective July 1.
Editor's note: (1)  The provisions of this section are similar to former §§ 4-9-110 and 4-
9-115 (3) as they existed prior to 2001.
(2)  Colorado legislative change: Colorado added the phrase "including a category
determined by use of a numerical or other code included in forms and formats adopted from time
to time by the secretary of state;" in subsection (b)(2), added a new paragraph (3) to subsection
(e), and added a new subsection (f).
4-9-109.  Scope. (a)  Except as otherwise provided in subsections (c), (d), and (e) of this
section, this article applies to:
(1)  A transaction, regardless of its form, that creates a security interest in personal
property or fixtures by contract;
(2)  An agricultural lien;
(3)  A sale of accounts, chattel paper, payment intangibles, or promissory notes;
(4)  A consignment;
(5)  A security interest arising under section 4-2-401, 4-2-505, 4-2-711 (3), or 4-2.5-508
(5), as provided in section 4-9-110; and
(6)  A security interest arising under section 4-4-210 or 4-5-117.5.
(b)  The application of this article to a security interest in a secured obligation is not
affected by the fact that the obligation is itself secured by a transaction or interest to which this
article does not apply.
(c)  This article does not apply to the extent that:
(1)  A statute, regulation, or treaty of the United States preempts this article;
(2)  A statute of this state governs or a constitutional provision provides authority for the
creation, perfection, priority, or enforcement of tax liens;
(3)  A statute of another state, a foreign country, or a governmental unit of another state
or a foreign country, other than a statute generally applicable to security interests, expressly
governs creation, perfection, priority, or enforcement of a security interest created by the state,
country, or governmental unit; or
(4)  The rights of a transferee beneficiary or nominated person under a letter of credit are
independent and superior under section 4-5-114.
(d)  This article does not apply to:
(1)  A landlord's lien, other than an agricultural lien;
(2)  A lien, other than an agricultural lien, given by statute or other rule of law for
services or materials, but section 4-9-333 applies with respect to priority of the lien;
(3)  An assignment of a claim for wages, salary, or other compensation of an employee;
(4)  A sale of accounts, chattel paper, payment intangibles, or promissory notes as part of
a sale of the business out of which they arose;
(5)  An assignment of accounts, chattel paper, payment intangibles, or promissory notes
which is for the purpose of collection only;
(6)  An assignment of a right to payment under a contract to an assignee that is also
obligated to perform under the contract;
(7)  An assignment of a single account, payment intangible, or promissory note to an
assignee in full or partial satisfaction of a preexisting indebtedness;
Colorado Revised Statutes 2024 Page 247 of  368 Uncertified Printout
(8)  A transfer of an interest in or an assignment of a claim under a policy of insurance,
other than an assignment by or to a health-care provider of a health-care-insurance receivable
and any subsequent assignment of the right to payment, but sections 4-9-315 and 4-9-322 apply
with respect to proceeds and priorities in proceeds;
(9)  An assignment of a right represented by a judgment, other than a judgment taken on
a right to payment that was collateral;
(10)  A right of recoupment or set-off, but:
(A)  Section 4-9-340 applies with respect to the effectiveness of rights of recoupment or
set-off against deposit accounts; and
(B)  Section 4-9-404 applies with respect to defenses or claims of an account debtor;
(11)  The creation or transfer of an interest in or lien on real property, including a lease or
rents thereunder, except to the extent that provision is made for:
(A)  Liens on real property in sections 4-9-203 and 4-9-308;
(B)  Fixtures in section 4-9-334;
(C)  Fixture filings in sections 4-9-501, 4-9-502, 4-9-512, 4-9-516, and 4-9-519; and
(D)  Security agreements covering personal and real property in section 4-9-604;
(12)  An assignment of a claim arising in tort, other than a commercial tort claim, but
sections 4-9-315 and 4-9-322 apply with respect to proceeds and priorities in proceeds;
(13)  An assignment of a consumer deposit account in any transaction, but sections 4-9-
315 and 4-9-322 apply with respect to proceeds and priorities in proceeds;
(13.5)  An assignment of a deposit account in transactions where the principal or the
maximum line of credit on a revolving loan account do not exceed one hundred thousand dollars,
but sections 4-9-315 and 4-9-322 apply with respect to proceeds and priorities in proceeds. A
"revolving loan account" means an arrangement between a creditor and a debtor whereby the
lender may permit the debtor, from time to time, to purchase or lease on credit or to obtain loans
from the creditor.
(14)  An assignment of an individual retirement account as defined in 26 U.S.C. sec. 408;
or
(15)  An assignment of any plan as defined in 26 U.S.C. sec. 401.
(e)  The creation, perfection, priority, and enforcement of a security interest, lien, or
pledge created by this state or a governmental unit of this state shall be governed by section 11-
57-208 (2), C.R.S., and this article shall not apply to such a security interest, lien, or pledge
regardless of whether, pursuant to section 11-57-204 (1), C.R.S., the state or such governmental
unit elected to apply part 2 of article 57 of title 11, C.R.S., to such a security interest, lien, or
pledge.
Source: L. 2001: Entire article R&RE, p. 1331, § 1, effective July 1.
Editor's note: (1)  The provisions of this section are similar to former §§ 4-9-102 and 4-
9-104 as they existed prior to 2001.
(2)  Colorado legislative change: Colorado added subsection (e) to the list of exceptions
in subsection (a) and added a new subsection (e). In subsection (c)(2), Colorado did not adopt the
word "expressly" before the word "governs", added the phrase "or a constitutional provision
provides authority for", and substituted the phrase "tax liens" for the phrase "a security interest
Colorado Revised Statutes 2024 Page 248 of  368 Uncertified Printout
created by this State or a governmental unit of this State". Colorado added new paragraphs
(13.5), (14), and (15) to subsection (d).
4-9-110.  Security interests arising under article 2 or 2.5. A security interest arising
under section 4-2-401, 4-2-505, 4-2-711 (3), or 4-2.5-508 (5) is subject to this article. However,
until the debtor obtains possession of the goods:
(1)  The security interest is enforceable, even if section 4-9-203 (b)(3) has not been
satisfied;
(2)  Filing is not required to perfect the security interest;
(3)  The rights of the secured party after default by the debtor are governed by article 2 or
2.5 of this title; and
(4)  The security interest has priority over a conflicting security interest created by the
debtor.
Source: L. 2001: Entire article R&RE, p. 1333, § 1, effective July 1.
Editor's note: This section is similar to former § 4-9-113 as it existed prior to 2001.
PART 2
EFFECTIVENESS OF SECURITY AGREEMENT;
ATTACHMENT OF SECURITY INTEREST;
RIGHTS OF PARTIES TO SECURITY AGREEMENT
4-9-201.  General effectiveness of security agreement. (a)  Except as otherwise
provided by this title, a security agreement is effective according to its terms between the parties,
against purchasers of the collateral, and against creditors.
(b)  A transaction subject to this article 9 is subject to any applicable rule of law that
establishes a different rule for consumers and any other statute or rule of this state that regulates
the rates, charges, agreements, and practices for loans, credit sales, or other extensions of credit
and any consumer protection statute or rule of this state, including, but not limited to, the
"Uniform Consumer Credit Code", articles 1 to 9 of title 5; the "Colorado Consumer Protection
Act", article 1 of title 6; "assignment of wages", article 9 of title 8; "property and earnings
exempt", article 54 of title 13; and the "Colorado Fair Debt Collection Practices Act", article 16
of title 5.
(c)  In case of conflict between this article and a rule of law, statute, or regulation
described in subsection (b) of this section, the rule of law, statute, or regulation controls. Failure
to comply with a statute or regulation described in subsection (b) of this section has only the
effect the statute or regulation specifies.
(d)  This article does not:
(1)  Validate any rate, charge, agreement, or practice that violates a rule of law, statute, or
regulation described in subsection (b) of this section; or
(2)  Extend the application of the rule of law, statute, or regulation to a transaction not
otherwise subject to it.
Colorado Revised Statutes 2024 Page 249 of  368 Uncertified Printout
Source: L. 2001: Entire article R&RE, p. 1334, § 1, effective July 1. L. 2002: (b) and (c)
amended, p. 937, § 2, effective August 7. L. 2017: (b) amended, (HB 17-1238), ch. 260, p. 1169,
§ 5, effective August 9.
Editor's note: (1)  The provisions of this section are similar to former §§ 4-9-201 and 4-
9-203 (4) as they existed prior to 2001.
(2)  Colorado legislative change: Colorado did not adopt the phrase "rule of law" in
subsections (b) and (c) in 2001 when this article was repealed and reenacted. The phrase was
subsequently adopted in 2002.
4-9-202.  Title to collateral immaterial. Except as otherwise provided with respect to
consignments or sales of accounts, chattel paper, payment intangibles, or promissory notes, the
provisions of this article with regard to rights and obligations apply whether title to collateral is
in the secured party or the debtor.
Source: L. 2001: Entire article R&RE, p. 1334, § 1, effective July 1.
Editor's note: This section is similar to former § 4-9-202 as it existed prior to 2001.
4-9-203.  Attachment and enforceability of security interest; proceeds; supporting
obligations; formal requisites. (a)  A security interest attaches to collateral when it becomes
enforceable against the debtor with respect to the collateral, unless an agreement expressly
postpones the time of attachment.
(b)  Except as otherwise provided in subsections (c) to (i) of this section, a security
interest is enforceable against the debtor and third parties with respect to the collateral only if:
(1)  Value has been given;
(2)  The debtor has rights in the collateral or the power to transfer rights in the collateral
to a secured party; and
(3)  One of the following conditions is met:
(A)  The debtor has signed a security agreement that provides a description of the
collateral and, if the security interest covers timber to be cut, a description of the land concerned;
(B)  The collateral is not a certificated security and is in the possession of the secured
party under section 4-9-313 pursuant to the debtor's security agreement;
(C)  The collateral is a certificated security in registered form, and the security certificate
has been delivered to the secured party under section 4-8-301 pursuant to the debtor's security
agreement;
(D)  The collateral is controllable accounts, controllable electronic records, controllable
payment intangibles, deposit accounts, electronic documents, investment property, or letter-of-
credit rights, and the secured party has control under section 4-7-106, 4-9-104, 4-9-106, 4-9-107,
or 4-9-107.5 pursuant to the debtor's security agreement; or
(E)  The collateral is chattel paper, and the secured party has possession and control
under section 4-9-314.5 pursuant to the debtor's security agreement.
(c)  Subsection (b) of this section is subject to section 4-4-210 on the security interest of a
collecting bank, section 4-5-117.5 on the security interest of a letter-of-credit issuer or
Colorado Revised Statutes 2024 Page 250 of  368 Uncertified Printout
nominated person, section 4-9-110 on a security interest arising under article 2 or 2.5 of this title,
and section 4-9-206 on security interests in investment property.
(d)  A person becomes bound as debtor by a security agreement entered into by another
person if, by operation of law other than this article or by contract:
(1)  The security agreement becomes effective to create a security interest in the person's
property; or
(2)  The person becomes generally obligated for the obligations of the other person,
including the obligation secured under the security agreement, and acquires or succeeds to all or
substantially all of the assets of the other person.
(e)  If a new debtor becomes bound as debtor by a security agreement entered into by
another person:
(1)  The agreement satisfies paragraph (3) of subsection (b) of this section with respect to
existing or after-acquired property of the new debtor to the extent the property is described in the
agreement; and
(2)  Another agreement is not necessary to make a security interest in the property
enforceable.
(f)  The attachment of a security interest in collateral gives the secured party the rights to
proceeds provided by section 4-9-315 and is also attachment of a security interest in a supporting
obligation for the collateral.
(g)  The attachment of a security interest in a right to payment or performance secured by
a security interest or other lien on personal or real property is also attachment of a security
interest in the security interest, mortgage, or other lien.
(h)  The attachment of a security interest in a securities account is also attachment of a
security interest in the security entitlements carried in the securities account.
(i)  The attachment of a security interest in a commodity account is also attachment of a
security interest in the commodity contracts carried in the commodity account.
(j)  No security interest in consumer goods owned by a married person and used
primarily for personal, family, or household purposes, other than property referred to in section
4-9-311 and other than any purchase money security interest, shall be enforceable unless the
security agreement describing the collateral in accordance with section 4-9-108 is authenticated
by both husband and wife if they are residing together at the time the security interest is created.
Source: L. 2001: Entire article R&RE, p. 1334, § 1, effective July 1. L. 2006: (b)(3)(D)
amended, p. 500, § 34, effective September 1. L. 2023: (b)(3)(A), (b)(3)(C), and (b)(3)(D)
amended and (b)(3)(E) added, (SB 23-090), ch. 136, p. 546, § 46, effective August 7.
Editor's note: (1)  The provisions of this section are similar to provisions of several
former sections as they existed prior to 2001. For a detailed comparison, see the comparative
tables located in the back of the index.
(2)  Colorado legislative change: Colorado added a new subsection (j).
4-9-204.  After-acquired property - future advances. (a)  Except as otherwise provided
in subsection (b) of this section, a security agreement may create or provide for a security
interest in after-acquired collateral.
Colorado Revised Statutes 2024 Page 251 of  368 Uncertified Printout
(b)  Subject to subsection (b.1) of this section, a security interest does not attach under a
term constituting an after-acquired property clause to:
(1)  Consumer goods, other than an accession when given as additional security, unless
the debtor acquires rights in them within ten days after the secured party gives value; or
(2)  A commercial tort claim.
(b.1)  Subsection (b) of this section does not prevent a security interest from attaching:
(1)  To consumer goods as proceeds under section 4-9-315 (a) or commingled goods
under section 4-9-336 (c);
(2)  To a commercial tort claim as proceeds under section 4-9-315 (a); or
(3)  Under an after-acquired property clause to property that is proceeds of consumer
goods or a commercial tort claim.
(c)  A security agreement may provide that collateral secures, or that accounts, chattel
paper, payment intangibles, or promissory notes are sold in connection with, future advances or
other value, whether or not the advances or value are given pursuant to commitment.
Source: L. 2001: Entire article R&RE, p. 1336, § 1, effective July 1. L. 2023: IP(b)
amended and (b.1) added, (SB 23-090), ch. 136, p. 547, § 47, effective August 7.
Editor's note: This section is similar to former § 4-9-204 as it existed prior to 2001.
4-9-205.  Use or disposition of collateral permissible. (a)  A security interest is not
invalid or fraudulent against creditors solely because:
(1)  The debtor has the right or ability to:
(A)  Use, commingle, or dispose of all or part of the collateral, including returned or
repossessed goods;
(B)  Collect, compromise, enforce, or otherwise deal with collateral;
(C)  Accept the return of collateral or make repossessions; or
(D)  Use, commingle, or dispose of proceeds; or
(2)  The secured party fails to require the debtor to account for proceeds or replace
collateral.
(b)  This section does not relax the requirements of possession if attachment, perfection,
or enforcement of a security interest depends upon possession of the collateral by the secured
party.
Source: L. 2001: Entire article R&RE, p. 1336, § 1, effective July 1.
Editor's note: This section is similar to former § 4-9-205 as it existed prior to 2001.
4-9-206.  Security interest arising in purchase or delivery of financial asset. (a)  A
security interest in favor of a securities intermediary attaches to a person's security entitlement if:
(1)  The person buys a financial asset through the securities intermediary in a transaction
in which the person is obligated to pay the purchase price to the securities intermediary at the
time of the purchase; and
(2)  The securities intermediary credits the financial asset to the buyer's securities
account before the buyer pays the securities intermediary.
Colorado Revised Statutes 2024 Page 252 of  368 Uncertified Printout
(b)  The security interest described in subsection (a) of this section secures the person's
obligation to pay for the financial asset.
(c)  A security interest in favor of a person that delivers a certificated security or other
financial asset represented by a writing attaches to the security or other financial asset if:
(1)  The security or other financial asset:
(A)  In the ordinary course of business is transferred by delivery with any necessary
indorsement or assignment; and
(B)  Is delivered under an agreement between persons in the business of dealing with
such securities or financial assets; and
(2)  The agreement calls for delivery against payment.
(d)  The security interest described in subsection (c) of this section secures the obligation
to make payment for the delivery.
Source: L. 2001: Entire article R&RE, p. 1337, § 1, effective July 1.
Editor's note: This section is similar to former § 4-9-116 as it existed prior to 2001.
4-9-207.  Rights and duties of secured party having possession or control of
collateral. (a)  Except as otherwise provided in subsection (d) of this section, a secured party
shall use reasonable care in the custody and preservation of collateral in the secured party's
possession. In the case of chattel paper or an instrument, reasonable care includes taking
necessary steps to preserve rights against prior parties unless otherwise agreed.
(b)  Except as otherwise provided in subsection (d) of this section, if a secured party has
possession of collateral:
(1)  Reasonable expenses, including the cost of insurance and payment of taxes or other
charges, incurred in the custody, preservation, use, or operation of the collateral are chargeable
to the debtor and are secured by the collateral;
(2)  The risk of accidental loss or damage is on the debtor to the extent of a deficiency in
any effective insurance coverage;
(3)  The secured party shall keep the collateral identifiable, but fungible collateral may be
commingled; and
(4)  The secured party may use or operate the collateral:
(A)  For the purpose of preserving the collateral or its value;
(B)  As permitted by an order of a court having competent jurisdiction; or
(C)  Except in the case of consumer goods, in the manner and to the extent agreed by the
debtor.
(c)  Except as otherwise provided in subsection (d) of this section, a secured party having
possession of collateral or control of collateral under section 4-7-106, 4-9-104, 4-9-105, 4-9-106,
4-9-107, or 4-9-107.5:
(1)  May hold as additional security any proceeds, except money or funds, received from
the collateral;
(2)  Shall apply money or funds received from the collateral to reduce the secured
obligation, unless remitted to the debtor; and
(3)  May create a security interest in the collateral.
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(d)  If the secured party is a buyer of accounts, chattel paper, payment intangibles, or
promissory notes or a consignor:
(1)  Subsection (a) of this section does not apply unless the secured party is entitled under
an agreement:
(A)  To charge back uncollected collateral; or
(B)  Otherwise to full or limited recourse against the debtor or a secondary obligor based
on the nonpayment or other default of an account debtor or other obligor on the collateral; and
(2)  Subsections (b) and (c) of this section do not apply.
Source: L. 2001: Entire article R&RE, p. 1337, § 1, effective July 1. L. 2006: IP(c)
amended, p. 500, § 35, effective September 1. L. 2023: IP(c) amended, (SB 23-090), ch. 136, p.
547, § 48, effective August 7.
Editor's note: This section is similar to former § 4-9-207 as it existed prior to 2001.
4-9-208.  Additional duties of secured party having control of collateral. (a)  This
section applies to cases in which there is no outstanding secured obligation and the secured party
is not committed to make advances, incur obligations, or otherwise give value.
(b)  Within five business days after receiving a signed demand by the debtor:
(1)  A secured party having control of a deposit account under section 4-9-104 (a)(2)
shall send to the bank with which the deposit account is maintained a signed record that releases
the bank from any further obligation to comply with instructions originated by the secured party;
(2)  A secured party having control of a deposit account under section 4-9-104 (a)(3)
shall:
(A)  Pay the debtor the balance on deposit in the deposit account; or
(B)  At the request of the debtor, transfer the balance on deposit into a deposit account in
the debtor's name, providing sufficient information so that the debtor can access the deposit
account.
(2.5)  The amount due the debtor shall also include all interest earned on the deposit
account to the extent not already credited to the deposit account or paid to the debtor from the
date the conditions in subsection (a) of this section are satisfied.
(3)  A secured party, other than a buyer, having control under section 4-9-105 of an
authoritative electronic copy of a record evidencing chattel paper shall transfer control of the
electronic copy to the debtor or a person designated by the debtor;
(4)  A secured party having control of investment property under section 4-8-106 (d)(2)
or 4-9-106 (b) shall send to the securities intermediary or commodity intermediary with which
the security entitlement or commodity contract is maintained a signed record that releases the
securities intermediary or commodity intermediary from any further obligation to comply with
entitlement orders or directions originated by the secured party;
(5)  A secured party having control of a letter-of-credit right under section 4-9-107 shall
send to each person having an unfulfilled obligation to pay or deliver proceeds of the letter of
credit to the secured party a signed release from any further obligation to pay or deliver proceeds
of the letter of credit to the secured party;
Colorado Revised Statutes 2024 Page 254 of  368 Uncertified Printout
(6)  A secured party having control under section 4-7-106 of an authoritative electronic
copy of an electronic document shall transfer control of the electronic copy to the debtor or a
person designated by the debtor; and
(7)  A secured party having control under section 4-12-105 of a controllable electronic
record, other than a buyer of a controllable account or controllable payment intangible evidenced
by the controllable electronic record, shall transfer control of the controllable electronic record to
the debtor or a person designated by the debtor.
Source: L. 2001: Entire article R&RE, p. 1338, § 1, effective July 1. L. 2006: (b)(4) and
(b)(5) amended and (b)(6) added, p. 500, § 36, effective September 1. L. 2023: IP(b), (b)(1),
(b)(3), (b)(4), (b)(5), and (b)(6) amended and (b)(7) added, (SB 23-090), ch. 136, p. 547, § 49,
effective August 7.
Editor's note - Colorado legislative change: Colorado substituted the phrase "five
business" for the word "10" in the introductory portion to subsection (b), added the phrases "At
the request of the debtor," and "providing sufficient information so that the debtor can access the
deposit account" in subsection (b)(2)(B), and added a new subsection (b)(2.5).
4-9-209.  Duties of secured party if account debtor has been notified of assignment.
(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 section 4-9-406 (a) or 4-12-106 (b)
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.
Source: L. 2001: Entire article R&RE, p. 1340, § 1, effective July 1. L. 2023: (b)
amended, (SB 23-090), ch. 136, p. 549, § 50, effective August 7.
4-9-210.  Request for accounting - request regarding list of collateral or statement of
account - definitions. (a)  In this section:
(1)  "Request" means a record of a type described in paragraph (2), (3), or (4) of this
subsection (a).
(2)  "Request for an accounting" means a record signed by a debtor requesting that the
recipient provide an accounting of the unpaid obligations secured by collateral and reasonably
identifying the transaction or relationship that is the subject of the request.
(3)  "Request regarding a list of collateral" means a record signed by a debtor requesting
that the recipient approve or correct a list of what the debtor believes to be the collateral securing
an obligation and reasonably identifying the transaction or relationship that is the subject of the
request.
Colorado Revised Statutes 2024 Page 255 of  368 Uncertified Printout
(4)  "Request regarding a statement of account" means a record authenticated by a debtor
requesting that the recipient approve or correct a statement indicating what the debtor believes to
be the aggregate amount of unpaid obligations secured by collateral as of a specified date and
reasonably identifying the transaction or relationship that is the subject of the request.
(b)  Subject to subsections (c), (d), (e), and (f) of this section, a secured party, other than
a buyer of accounts, chattel paper, payment intangibles, or promissory notes or a consignor, shall
comply with a request within fourteen days after receipt:
(1)  In the case of a request for an accounting, by signing and sending to the debtor an
accounting; and
(2)  In the case of a request regarding a list of collateral or a request regarding a
statement of account, by signing and sending to the debtor an approval or correction.
(c)  A secured party that claims a security interest in all of a particular type of collateral
owned by the debtor may comply with a request regarding a list of collateral by sending to the
debtor a signed record including a statement to that effect within fourteen days after receipt.
(d)  A person that receives a request regarding a list of collateral, that claims no interest
in the collateral when it receives the request, and that claimed an interest in the collateral at an
earlier time shall comply with the request within fourteen days after receipt by sending to the
debtor a signed record:
(1)  Disclaiming any interest in the collateral; and
(2)  If known to the recipient, providing the name and mailing address of any assignee of
or successor to the recipient's interest in the collateral.
(e)  A person that receives a request for an accounting or a request regarding a statement
of account, claims no interest in the obligations when it receives the request, and that claimed an
interest in the obligations at an earlier time shall comply with the request within fourteen days
after receipt by sending to the debtor an authenticated record:
(1)  Disclaiming any interest in the obligations; and
(2)  If known to the recipient, providing the name and mailing address of any assignee of
or successor to the recipient's interest in the obligations.
(f)  A debtor is entitled without charge to a response to a request under this section during
any six-month period for each (i) an accounting, (ii) regarding a list of collateral, and (iii)
regarding a statement of account. The secured party may require payment of a charge, not
exceeding fifteen dollars, for each additional response. Wherever the term "debtor" is used in
this section, it means either the debtor or the person designated by the debtor to receive a
response in a notification authenticated by the debtor and received by the secured party or other
applicable person at or prior to the time of a request.
Source: L. 2001: Entire article R&RE, p. 1340, § 1, effective July 1. L. 2023: (a)(2),
(a)(3), (b), (c), IP(d) amended, (SB 23-090), ch. 136, p. 549, § 51, effective August 7.
Editor's note: (1)  This section is similar to former § 4-9-208 as it existed prior to 2001.
(2)  Colorado legislative change: In subsection (f), Colorado changed the word "one" to
"a", added the phrase "for each (i) an accounting, (ii) regarding a list of collateral, and (iii)
regarding a statement of account", changed the fee from $25 to $15, and added the last sentence.
PART 3
Colorado Revised Statutes 2024 Page 256 of  368 Uncertified Printout
PERFECTION AND PRIORITY
4-9-301.  Law governing perfection and priority of security interests. Except as
otherwise provided in sections 4-9-303 to 4-9-306.7, the following rules determine the law
governing perfection, the effect of perfection or nonperfection, and the priority of a security
interest in collateral:
(1)  Except as otherwise provided in this section, while a debtor is located in a
jurisdiction, the local law of that jurisdiction governs perfection, the effect of perfection or
nonperfection, and the priority of a security interest in collateral.
(2)  While collateral is located in a jurisdiction, the local law of that jurisdiction governs
perfection, the effect of perfection or nonperfection, and the priority of a possessory security
interest in that collateral.
(3)  Except as otherwise provided in subsection (4) of this section, while negotiable
tangible documents, goods, instruments, or money is located in a jurisdiction, the local law of
that jurisdiction governs:
(A)  Perfection of a security interest in the goods by filing a fixture filing;
(B)  Perfection of a security interest in timber to be cut; and
(C)  The effect of perfection or nonperfection and the priority of a nonpossessory security
interest in the collateral.
(4)  The local law of the jurisdiction in which the wellhead or minehead is located
governs perfection, the effect of perfection or nonperfection, and the priority of a security
interest in as-extracted collateral.
Source: L. 2001: Entire article R&RE, p. 1341, § 1, effective July 1. L. 2006: IP(3)
amended, p. 501, § 37, effective September 1. L. 2023: IP and IP(3) amended, (SB 23-090), ch.
136, p. 550, § 52, effective August 7.
Editor's note: This section is similar to former § 4-9-103 as it existed prior to 2001.
4-9-302.  Law governing perfection and priority of agricultural liens. While farm
products are located in a jurisdiction, the local law of that jurisdiction governs perfection, the
effect of perfection or nonperfection, and the priority of an agricultural lien on the farm products.
Source: L. 2001: Entire article R&RE, p. 1342, § 1, effective July 1.
4-9-303.  Law governing perfection and priority of security interests in goods
covered by a certificate of title. (a)  This section applies to goods covered by a certificate of
title, even if there is no other relationship between the jurisdiction under whose certificate of title
the goods are covered and the goods or the debtor.
(b)  Goods become covered by a certificate of title when a valid application for the
certificate of title and the applicable fee are delivered to the appropriate authority. Goods cease
to be covered by a certificate of title at the earlier of the time the certificate of title ceases to be
effective under the law of the issuing jurisdiction or the time the goods become covered
subsequently by a certificate of title issued by another jurisdiction.
Colorado Revised Statutes 2024 Page 257 of  368 Uncertified Printout
(c)  The local law of the jurisdiction under whose certificate of title the goods are covered
governs perfection, the effect of perfection or nonperfection, and the priority of a security
interest in goods covered by a certificate of title from the time the goods become covered by the
certificate of title until the goods cease to be covered by the certificate of title.
Source: L. 2001: Entire article R&RE, p. 1342, § 1, effective July 1.
Editor's note: This section is similar to former § 4-9-103 as it existed prior to 2001.
4-9-304.  Law governing perfection and priority of security interests in deposit
accounts. (a)  The local law of a bank's jurisdiction governs perfection, the effect of perfection
or nonperfection, and the priority of a security interest in a deposit account maintained with that
bank even if the transaction does not bear any relation to the bank's jurisdiction.
(b)  The following rules determine a bank's jurisdiction for purposes of this part 3:
(1)  If an agreement between the bank and its customer governing the deposit account
expressly provides that a particular jurisdiction is the bank's jurisdiction for purposes of this part
3, this article, or this title, that jurisdiction is the bank's jurisdiction.
(2)  If paragraph (1) of this subsection (b) does not apply and an agreement between the
bank and its customer governing the deposit account expressly provides that the agreement is
governed by the law of a particular jurisdiction, that jurisdiction is the bank's jurisdiction.
(3)  If neither paragraph (1) nor paragraph (2) of this subsection (b) applies and an
agreement between the bank and its customer governing the deposit account expressly provides
that the deposit account is maintained at an office in a particular jurisdiction, that jurisdiction is
the bank's jurisdiction.
(4)  If none of paragraphs (1), (2), and (3) of this subsection (b) applies, the bank's
jurisdiction is the jurisdiction in which the office identified in an account statement as the office
serving the customer's account is located.
(5)  If none of paragraphs (1), (2), (3), and (4) of this subsection (b) applies, the bank's
jurisdiction is the jurisdiction in which the chief executive office of the bank is located.
Source: L. 2001: Entire article R&RE, p. 1343, § 1, effective July 1. L. 2002: (b)(1)
amended, p. 938, § 3, effective August 7. L. 2023: (a) amended, (SB 23-090), ch. 136, p. 550, §
53, effective August 7.
4-9-305.  Law governing perfection and priority of security interests in investment
property. (a)  Except as otherwise provided in subsection (c) of this section, the following rules
apply:
(1)  While a security certificate is located in a jurisdiction, the local law of that
jurisdiction governs perfection, the effect of perfection or nonperfection, and the priority of a
security interest in the certificated security represented thereby.
(2)  The local law of the issuer's jurisdiction as specified in section 4-8-110 (d) governs
perfection, the effect of perfection or nonperfection, and the priority of a security interest in an
uncertificated security.
Colorado Revised Statutes 2024 Page 258 of  368 Uncertified Printout
(3)  The local law of the securities intermediary's jurisdiction as specified in section 4-8-
110 (e) governs perfection, the effect of perfection or nonperfection, and the priority of a
security interest in a security entitlement or securities account.
(4)  The local law of the commodity intermediary's jurisdiction governs perfection, the
effect of perfection or nonperfection, and the priority of a security interest in a commodity
contract or commodity account.
(5)  Subsections (a)(2), (a)(3), and (a)(4) of this section apply even if the transaction does
not bear any relation to the jurisdiction.
(b)  The following rules determine a commodity intermediary's jurisdiction for purposes
of this part 3:
(1)  If an agreement between the commodity intermediary and commodity customer
governing the commodity account expressly provides that a particular jurisdiction is the
commodity intermediary's jurisdiction for purposes of this part 3, this article, or this title, that
jurisdiction is the commodity intermediary's jurisdiction.
(2)  If paragraph (1) of this subsection (b) does not apply and an agreement between the
commodity intermediary and commodity customer governing the commodity account expressly
provides that the agreement is governed by the law of a particular jurisdiction, that jurisdiction is
the commodity intermediary's jurisdiction.
(3)  If neither paragraph (1) nor paragraph (2) of this subsection (b) applies and an
agreement between the commodity intermediary and commodity customer governing the
commodity account expressly provides that the commodity account is maintained at an office in
a particular jurisdiction, that jurisdiction is the commodity intermediary's jurisdiction.
(4)  If none of paragraphs (1), (2), and (3) of this subsection (b) applies, the commodity
intermediary's jurisdiction is the jurisdiction in which the office identified in an account
statement as the office serving the commodity customer's account is located.
(5)  If none of paragraphs (1), (2), (3), and (4) of this subsection (b) applies, the
commodity intermediary's jurisdiction is the jurisdiction in which the chief executive office of
the commodity intermediary is located.
(c)  The local law of the jurisdiction in which the debtor is located governs:
(1)  Perfection of a security interest in investment property by filing;
(2)  Automatic perfection of a security interest in investment property created by a broker
or securities intermediary; and
(3)  Automatic perfection of a security interest in a commodity contract or commodity
account created by a commodity intermediary.
Source: L. 2001: Entire article R&RE, p. 1343, § 1, effective July 1. L. 2023: (a)(5)
added, (SB 23-090), ch. 136, p. 550, § 54, effective August 7.
Editor's note: This section is similar to former § 4-9-103 (6) as it existed prior to 2001.
4-9-306.  Law governing perfection and priority of security interests in letter-of-
credit rights. (a)  Subject to subsection (c) of this section, the local law of the issuer's
jurisdiction or a nominated person's jurisdiction governs perfection, the effect of perfection or
nonperfection, and the priority of a security interest in a letter-of-credit right if the issuer's
jurisdiction or nominated person's jurisdiction is a state.
Colorado Revised Statutes 2024 Page 259 of  368 Uncertified Printout
(b)  For purposes of this part 3, an issuer's jurisdiction or nominated person's jurisdiction
is the jurisdiction whose law governs the liability of the issuer or nominated person with respect
to the letter-of-credit right as provided in section 4-5-116.
(c)  This section does not apply to a security interest that is perfected only under section
4-9-308 (d).
Source: L. 2001: Entire article R&RE, p. 1344, § 1, effective July 1.
4-9-306.5.  Law governing perfection and priority of security interests in chattel
paper. (a)  Except as provided in subsection (d) of this section, if chattel paper is evidenced only
by an authoritative electronic copy of the chattel paper or is evidenced by an authoritative
electronic copy and an authoritative tangible copy, the local law of the chattel paper's
jurisdiction governs perfection, the effect of perfection or nonperfection, and the priority of a
security interest in the chattel paper, even if the transaction does not bear any relation to the
chattel paper's jurisdiction.
(b)  The following rules determine the chattel paper's jurisdiction under this section:
(1)  If the authoritative electronic copy of the record evidencing chattel paper, or a record
attached to or logically associated with the electronic copy and readily available for review,
expressly provides that a particular jurisdiction is the chattel paper's jurisdiction for purposes of
this part 3, this article 9, or this title 4, that jurisdiction is the chattel paper's jurisdiction.
(2)  If subsection (b)(1) of this section does not apply and the rules of the system in
which the authoritative electronic copy is recorded are readily available for review and expressly
provide that a particular jurisdiction is the chattel paper's jurisdiction for purposes of this part 3,
this article 9, or this title 4, that jurisdiction is the chattel paper's jurisdiction.
(3)  If subsections (b)(1) and (b)(2) of this section do not apply and the authoritative
electronic copy, or a record attached to or logically associated with the electronic copy and
readily available for review, expressly provides that the chattel paper is governed by the law of a
particular jurisdiction, that jurisdiction is the chattel paper's jurisdiction.
(4)  If subsections (b)(1), (b)(2), and (b)(3) of this section do not apply and the rules of
the system in which the authoritative electronic copy is recorded are readily available for review
and expressly provide that the chattel paper or the system is governed by the law of a particular
jurisdiction, that jurisdiction is the chattel paper's jurisdiction.
(5)  If subsections (b)(1) to (b)(4) of this section do not apply, the chattel paper's
jurisdiction is the jurisdiction in which the debtor is located.
(c)  If an authoritative tangible copy of a record evidences chattel paper and the chattel
paper is not evidenced by an authoritative electronic copy, while the authoritative tangible copy
of the record evidencing chattel paper is located in a jurisdiction, the local law of that
jurisdiction governs:
(1)  Perfection of a security interest in the chattel paper by possession under section 4-9-
314.5; and
(2)  The effect of perfection or nonperfection and the priority of a security interest in the
chattel paper.
(d)  The local law of the jurisdiction in which the debtor is located governs perfection of
a security interest in chattel paper by filing.
Colorado Revised Statutes 2024 Page 260 of  368 Uncertified Printout
Source: L. 2023: Entire section added, (SB 23-090), ch. 136, p. 550, § 55, effective
August 7.
4-9-306.7.  Law governing perfection and priority of security interests in
controllable accounts, controllable electronic records, and controllable payment
intangibles. (a)  Except as provided in subsection (b) of this section, the local law of the
controllable electronic record's jurisdiction specified in section 4-12-107 (c) and (d) governs
perfection, the effect of perfection or nonperfection, and the priority of a security interest in a
controllable electronic record and a security interest in a controllable account or controllable
payment intangible evidenced by the controllable electronic record.
(b)  The local law of the jurisdiction in which the debtor is located governs:
(1)  Perfection of a security interest in a controllable account, controllable electronic
record, or controllable payment intangible by filing; and
(2)  Automatic perfection of a security interest in a controllable payment intangible
created by a sale of the controllable payment intangible.
Source: L. 2023: Entire section added, (SB 23-090), ch. 136, p. 550, § 55, effective
August 7.
4-9-307.  Location of debtor. (a)  In this section, "place of business" means a place
where a debtor conducts its affairs.
(b)  Except as otherwise provided in this section, the following rules determine a debtor's
location:
(1)  A debtor who is an individual is located at the individual's principal residence.
(2)  A debtor that is an organization and has only one place of business is located at its
place of business.
(3)  A debtor that is an organization and has more than one place of business is located at
its chief executive office.
(c)  Subsection (b) of this section applies only if a debtor's residence, place of business,
or chief executive office, as applicable, is located in a jurisdiction whose law generally requires
information concerning the existence of a nonpossessory security interest to be made generally
available in a filing, recording, or registration system as a condition or result of the security
interest's obtaining priority over the rights of a lien creditor with respect to the collateral. If
subsection (b) of this section does not apply, the debtor is located in the District of Columbia.
(d)  A person that ceases to exist, have a residence, or have a place of business continues
to be located in the jurisdiction specified by subsections (b) and (c) of this section.
(e)  A registered organization that is organized under the law of a state is located in that
state.
(f)  Except as otherwise provided in subsection (i) of this section, a registered
organization that is organized under the law of the United States and a branch or agency of a
bank that is not organized under the law of the United States or a state are located:
(1)  In the state that the law of the United States designates, if the law designates a state
of location;
(2)  In the state that the registered organization, branch, or agency designates, if the law
of the United States authorizes the registered organization, branch, or agency to designate its
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state of location, including by designating its main office, home office, or other comparable
office; or
(3)  In the District of Columbia, if neither paragraph (1) nor paragraph (2) of this
subsection (f) applies.
(g)  A registered organization continues to be located in the jurisdiction specified by
subsection (e) or (f) of this section notwithstanding:
(1)  The suspension, revocation, forfeiture, or lapse of the registered organization's status
as such in its jurisdiction of organization; or
(2)  The dissolution, winding up, or cancellation of the existence of the registered
organization.
(h)  The United States is located in the District of Columbia.
(i)  A branch or agency of a bank that is not organized under the law of the United States
or a state is located in the state in which the branch or agency is licensed, if all branches and
agencies of the bank are licensed in only one state.
(j)  A foreign air carrier under the "Federal Aviation Act of 1958", as amended, is located
at the designated office of the agent upon which service of process may be made on behalf of the
carrier.
(k)  This section applies only for purposes of this part 3.
Source: L. 2001: Entire article R&RE, p. 1345, § 1, effective July 1. L. 2012: (f)(2)
amended, (HB 12-1262), ch. 170, p. 597, § 3, effective July 1, 2013.
Editor's note: This section is similar to former § 4-9-103 (3)(d) as it existed prior to
2001.
4-9-308.  When security interest or agricultural lien is perfected - continuity of
perfection. (a)  Except as otherwise provided in this section and section 4-9-309, a security
interest is perfected if it has attached and all of the applicable requirements for perfection in
sections 4-9-310 to 4-9-316 have been satisfied. A security interest is perfected when it attaches
if the applicable requirements are satisfied before the security interest attaches.
(b)  An agricultural lien is perfected if it has become effective and all of the applicable
requirements for perfection in section 4-9-310 have been satisfied. An agricultural lien is
perfected when it becomes effective if the applicable requirements are satisfied before the
agricultural lien becomes effective.
(c)  A security interest or agricultural lien is perfected continuously if it is originally
perfected by one method under this article and is later perfected by another method under this
article, without an intermediate period when it was unperfected.
(d)  Perfection of a security interest in collateral also perfects a security interest in a
supporting obligation for the collateral.
(e)  Perfection of a security interest in a right to payment or performance also perfects a
security interest in a security interest, mortgage, or other lien on personal or real property
securing the right.
(f)  Perfection of a security interest in a securities account also perfects a security interest
in the security entitlements carried in the securities account.
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(g)  Perfection of a security interest in a commodity account also perfects a security
interest in the commodity contracts carried in the commodity account.
Source: L. 2001: Entire article R&RE, p. 1346, § 1, effective July 1.
Editor's note: The provisions of this section are similar to former §§ 4-9-115 (2) and 4-
9-303 as they existed prior to 2001.
4-9-309.  Security interest perfected upon attachment. The following security interests
are perfected when they attach:
(1)  A purchase-money security interest in consumer goods, except as otherwise provided
in section 4-9-311 (b) with respect to consumer goods that are subject to a statute or treaty
described in section 4-9-311 (a);
(2)  An assignment of accounts or payment intangibles which does not by itself or in
conjunction with other assignments to the same assignee transfer a significant part of the
assignor's outstanding accounts or payment intangibles;
(3)  A sale of a payment intangible;
(4)  A sale of a promissory note;
(5)  A security interest created by the assignment of a health-care-insurance receivable to
the provider of the health-care goods or services;
(6)  A security interest arising under section 4-2-401, 4-2-505, 4-2-711 (3), or 4-2.5-508
(5), until the debtor obtains possession of the collateral;
(7)  A security interest of a collecting bank arising under section 4-4-210;
(8)  A security interest of an issuer or nominated person arising under section 4-5-117.5;
(9)  A security interest arising in the delivery of a financial asset under section 4-9-206
(c);
(10)  A security interest in investment property created by a broker or securities
intermediary;
(11)  A security interest in a commodity contract or a commodity account created by a
commodity intermediary;
(12)  An assignment for the benefit of all creditors of the transferor and subsequent
transfers by the assignee thereunder;
(13)  A security interest created by an assignment of a beneficial interest in a decedent's
estate; and
(14)  A sale by an individual of an account that is a right to payment of winnings in a
lottery or other game of chance.
Source: L. 2001: Entire article R&RE, p. 1347, § 1, effective July 1. L. 2002: (14)
added, p. 938, § 4, effective August 7.
Editor's note: (1)  The provisions of this section are similar to provisions of several
former sections as they existed prior to 2001. For a detailed comparison, see the comparative
tables located in the back of the index.
(2)  Colorado legislative change: Colorado substituted the reference to § 4-5-117.5 for
the uniform act's reference to § 4-5-118 in paragraph (8).
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4-9-310.  When filing required to perfect security interest or agricultural lien -
security interests and agricultural liens to which filing provisions do not apply. (a)  Except
as otherwise provided in subsection (b) of this section and section 4-9-312 (b), a financing
statement must be filed to perfect all security interests and agricultural liens.
(b)  The filing of a financing statement is not necessary to perfect a security interest:
(1)  That is perfected under section 4-9-308 (d), (e), (f), or (g);
(2)  That is perfected under section 4-9-309 when it attaches;
(3)  In property subject to a statute, regulation, or treaty described in section 4-9-311 (a);
(4)  In goods in possession of a bailee which is perfected under section 4-9-312 (d)(1) or
(2);
(5)  In certificated securities, documents, goods, or instruments that is perfected without
filing, control, or possession under section 4-9-312 (e), (f), or (g);
(6)  In collateral in the secured party's possession under section 4-9-313;
(7)  In a certificated security which is perfected by delivery of the security certificate to
the secured party under section 4-9-313;
(8)  In controllable accounts, controllable electronic records, controllable payment
intangibles, deposit accounts, electronic documents, investment property, or letter-of-credit
rights that is perfected by control under section 4-9-314;
(8.1)  In chattel paper that is perfected by possession and control under section 4-9-314.5;
(9)  In proceeds which is perfected under section 4-9-315; or
(10)  That is perfected under section 4-9-316.
(c)  If a secured party assigns a perfected security interest or agricultural lien, a filing
under this article is not required to continue the perfected status of the security interest against
creditors of and transferees from the original debtor.
Source: L. 2001: Entire article R&RE, p. 1348, § 1, effective July 1. L. 2006: (b)(5) and
(b)(8) amended, p. 501, § 38, effective September 1. L. 2023: (b)(8) amended and (b)(8.1)
added, (SB 23-090), ch. 136, p. 552, § 56, effective August 7.
Editor's note: This section is similar to former § 4-9-302 as it existed prior to 2001.
4-9-311.  Perfection of security interests in property subject to certain statutes,
regulations, and treaties. (a)  Except as otherwise provided in subsection (d) of this section, the
filing of a financing statement is not necessary or effective to perfect a security interest in
property subject to:
(1)  A statute, regulation, or treaty of the United States whose requirements for a security
interest's obtaining priority over the rights of a lien creditor with respect to the property preempt
section 4-9-310 (a);
(2)  A statute of this state covering automobiles or other goods that provides for a
security interest to be indicated on a certificate of title as a condition or result of perfection of the
security interest; or
(3)  A statute of another jurisdiction that provides for a security interest to be indicated
on a certificate of title as a condition or result of the security interest's obtaining priority over the
rights of a lien creditor with respect to the property.
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(b)  Compliance with the requirements of a statute, regulation, or treaty described in
subsection (a) of this section for obtaining priority over the rights of a lien creditor is equivalent
to the filing of a financing statement under this article. Except as otherwise provided in
subsection (d) of this section and sections 4-9-313 and 4-9-316 (d) and (e) for goods covered by
a certificate of title, a security interest in property subject to a statute, regulation, or treaty
described in subsection (a) of this section may be perfected only by compliance with those
requirements, and a security interest so perfected remains perfected notwithstanding a change in
the use or transfer of possession of the collateral.
(c)  Except as otherwise provided in subsection (d) of this section and section 4-9-316 (d)
and (e), duration and renewal of perfection of a security interest perfected by compliance with
the requirements prescribed by a statute, regulation, or treaty described in subsection (a) of this
section are governed by the statute, regulation, or treaty. In other respects, the security interest is
subject to this article.
(d)  During any period in which collateral subject to a statute specified in paragraph (2)
of subsection (a) of this section is inventory held for sale or lease by a person or leased by that
person as lessor and that person is in the business of selling goods of that kind, this section does
not apply to a security interest in that collateral created by that person.
Source: L. 2001: Entire article R&RE, p. 1348, § 1, effective July 1. L. 2012: (a)(2) and
(a)(3) amended, (HB 12-1262), ch. 170, p. 597, § 4, effective July 1, 2013.
Editor's note: (1)  This section is similar to former § 4-9-302 as it existed prior to 2001.
(2)  Colorado legislative change: In subsection (d), Colorado added the phrase "subject
to a statute specified in paragraph (2) of subsection (a) of this section" and did not adopt the
phrase "or leasing" after the word "selling" or the phrase "as debtor" at the end of the sentence.
4-9-312.  Perfection of security interests in chattel paper, controllable accounts,
controllable electronic records, controllable payment intangibles, deposit accounts,
documents, goods covered by documents, instruments, investment property, letter-of-credit
rights, and money - perfection by permissive filing - temporary perfection without filing or
transfer of possession. (a)  A security interest in chattel paper, controllable accounts,
controllable electronic records, controllable payment intangibles, instruments, investment
property, or negotiable documents may be perfected by filing.
(b)  Except as otherwise provided in section 4-9-315 (c) and (d) for proceeds:
(1)  A security interest in a deposit account may be perfected only by control under
section 4-9-314; and
(2)  Except as otherwise provided in section 4-9-308 (d), a security interest in a letter-of-
credit right may be perfected only by control under section 4-9-314; and
(3)  A security interest in money may be perfected only by the secured party's taking
possession under section 4-9-313.
(c)  While goods are in the possession of a bailee that has issued a negotiable document
covering the goods:
(1)  A security interest in the goods may be perfected by perfecting a security interest in
the document; and
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(2)  A security interest perfected in the document has priority over any security interest
that becomes perfected in the goods by another method during that time.
(d)  While goods are in the possession of a bailee that has issued a nonnegotiable
document covering the goods, a security interest in the goods may be perfected by:
(1)  Issuance of a document in the name of the secured party;
(2)  The bailee's receipt of notification of the secured party's interest; or
(3)  Filing as to the goods.
(e)  A security interest in certificated securities, negotiable documents, or instruments is
perfected without filing or the taking of possession or control for a period of twenty days from
the time it attaches to the extent that it arises for new value given under a signed security
agreement.
(f)  A perfected security interest in a negotiable document or goods in possession of a
bailee, other than one that has issued a negotiable document for the goods, remains perfected for
twenty days without filing if the secured party makes available to the debtor the goods or
documents representing the goods for the purpose of:
(1)  Ultimate sale or exchange; or
(2)  Loading, unloading, storing, shipping, transshipping, manufacturing, processing, or
otherwise dealing with them in a manner preliminary to their sale or exchange.
(g)  A perfected security interest in a certificated security or instrument remains perfected
for twenty days without filing if the secured party delivers the security certificate or instrument
to the debtor for the purpose of:
(1)  Ultimate sale or exchange; or
(2)  Presentation, collection, enforcement, renewal, or registration of transfer.
(h)  After the twenty-day period specified in subsection (e), (f), or (g) of this section
expires, perfection depends upon compliance with this article.
Source: L. 2001: Entire article R&RE, p. 1349, § 1, effective July 1. L. 2006: (e)
amended, p. 501, § 39, effective September 1. L. 2023: (a) and (e) amended, (SB 23-090), ch.
136, p. 552, § 57, effective August 7.
Editor's note: The provisions of this section are similar to former §§ 4-9-115 (4) and 4-
9-304 as they existed prior to 2001.
4-9-313.  When possession by or delivery to secured party perfects security interest
without filing. (a)  Except as otherwise provided in subsection (b) of this section, a secured
party may perfect a security interest in goods, instruments, negotiable tangible documents, or
money by taking possession of the collateral. A secured party may perfect a security interest in
certificated securities by taking delivery of the certificated securities under section 4-8-301.
(b)  With respect to goods covered by a certificate of title issued by this state, a secured
party may perfect a security interest in the goods by taking possession of the goods only in the
circumstances described in section 4-9-316 (d).
(c)  With respect to collateral other than certificated securities and goods covered by a
document, a secured party takes possession of collateral in the possession of a person other than
the debtor, the secured party, or a lessee of the collateral from the debtor in the ordinary course
of the debtor's business when:
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(1)  The person in possession signs a record acknowledging that it holds possession of the
collateral for the secured party's benefit; or
(2)  The person takes possession of the collateral after having signed a record
acknowledging that it will hold possession of the collateral for the secured party's benefit.
(d)  If perfection of a security interest depends upon possession of the collateral by a
secured party, perfection occurs not earlier than the time the secured party takes possession and
continues only while the secured party retains possession.
(e)  A security interest in a certificated security in registered form is perfected by delivery
when delivery of the certificated security occurs under section 4-8-301 and remains perfected by
delivery until the debtor obtains possession of the security certificate.
(f)  A person in possession of collateral is not required to acknowledge that it holds
possession for a secured party's benefit.
(g)  If a person acknowledges that it holds possession for the secured party's benefit:
(1)  The acknowledgment is effective under subsection (c) of this section or section 4-8-
301 (a), even if the acknowledgment violates the rights of a debtor; and
(2)  Unless the person otherwise agrees or law other than this article otherwise provides,
the person does not owe any duty to the secured party and is not required to confirm the
acknowledgment to another person.
(h)  A secured party having possession of collateral does not relinquish possession by
delivering the collateral to a person other than the debtor or a lessee of the collateral from the
debtor in the ordinary course of the debtor's business if the person was instructed before the
delivery or is instructed contemporaneously with the delivery:
(1)  To hold possession of the collateral for the secured party's benefit; or
(2)  To redeliver the collateral to the secured party.
(i)  A secured party does not relinquish possession, even if a delivery under subsection
(h) of this section violates the rights of a debtor. A person to which collateral is delivered under
subsection (h) of this section does not owe any duty to the secured party and is not required to
confirm the delivery to another person unless the person otherwise agrees or law other than this
article otherwise provides.
(j)  References in subsections (g) or (i) of this section regarding violation of the rights of
a debtor shall not be construed as limiting the debtor's rights.
Source: L. 2001: Entire article R&RE, p. 1351, § 1, effective July 1. L. 2006: (a)
amended, p. 502, § 40, effective September 1. L. 2023: (a), (c), and (d) amended, (SB 23-090),
ch. 136, p. 552, § 58, effective August 7.
Editor's note: (1)  The provisions of this section are similar to former §§ 4-9-115 (4)(b)
and 4-9-305 as they existed prior to 2001.
(2)  Colorado legislative change: Colorado added subsection (j).
4-9-314.  Perfection by control. (a)  A security interest in controllable accounts,
controllable electronic records, controllable payment intangibles, deposit accounts, electronic
documents, investment property, or letter-of-credit rights may be perfected by control of the
collateral under section 4-7-106, 4-9-104, 4-9-106, 4-9-107, or 4-9-107.5.
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(b)  A security interest in controllable accounts, controllable electronic records,
controllable payment intangibles, deposit accounts, electronic documents, or letter-of-credit
rights is perfected by control under section 4-7-106, 4-9-104, 4-9-107, or 4-9-107.5 not earlier
than the time the secured party obtains control and remains perfected by control only while the
secured party retains control.
(c)  A security interest in investment property is perfected by control under section 4-9-
106 not earlier than the time the secured party obtains control and remains perfected by control
until:
(1)  The secured party does not have control; and
(2)  One of the following occurs:
(A)  If the collateral is a certificated security, the debtor has or acquires possession of the
security certificate;
(B)  If the collateral is an uncertificated security, the issuer has registered or registers the
debtor as the registered owner; or
(C)  If the collateral is a security entitlement, the debtor is or becomes the entitlement
holder.
Source: L. 2001: Entire article R&RE, p. 1352, § 1, effective July 1. L. 2006: (a) and (b)
amended, p. 502, § 41, effective September 1. L. 2023: (a), (b), and IP(c) amended, (SB 23-090),
ch. 136, p. 553, § 59, effective August 7.
Editor's note: This section is similar to former § 4-9-115 (4) as it existed prior to 2001.
4-9-314.5.  Perfection by possession and control of chattel paper. (a)  A secured party
may perfect a security interest in chattel paper by taking possession of each authoritative
tangible copy of the record evidencing the chattel paper and obtaining control of each
authoritative electronic copy of the electronic record evidencing the chattel paper.
(b)  A security interest is perfected under subsection (a) of this section not earlier than the
time the secured party takes possession and obtains control and remains perfected under
subsection (a) of this section only while the secured party retains possession and control.
(c)  Section 4-9-313 (c) and (f) to (i) applies to perfection by possession of an
authoritative tangible copy of a record evidencing chattel paper.
Source: L. 2023: Entire section added, (SB 23-090), ch. 136, p. 553, § 60, effective
August 7.
4-9-315.  Secured party's rights on disposition of collateral and in proceeds. (a) 
Except as otherwise provided in this article and in section 4-2-403 (2):
(1)  A security interest or agricultural lien continues in collateral notwithstanding sale,
lease, license, exchange, or other disposition thereof unless the secured party authorized the
disposition free of the security interest or agricultural lien; and
(2)  A security interest attaches to any identifiable proceeds of collateral.
(b)  Proceeds that are commingled with other property are identifiable proceeds:
(1)  If the proceeds are goods, to the extent provided by section 4-9-336; and
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(2)  If the proceeds are not goods, to the extent that the secured party identifies the
proceeds by a method of tracing, including application of equitable principles, that is permitted
under law other than this article with respect to commingled property of the type involved.
(c)  A security interest in proceeds is a perfected security interest if the security interest
in the original collateral was perfected.
(d)  A perfected security interest in proceeds becomes unperfected on the twenty-first day
after the security interest attaches to the proceeds unless:
(1)  The following conditions are satisfied:
(A)  A filed financing statement covers the original collateral;
(B)  The proceeds are collateral in which a security interest may be perfected by filing in
the office in which the financing statement has been filed; and
(C)  The proceeds are not acquired with cash proceeds;
(2)  The proceeds are identifiable cash proceeds; or
(3)  The security interest in the proceeds is perfected other than under subsection (c) of
this section when the security interest attaches to the proceeds or within twenty days thereafter.
(e)  If a filed financing statement covers the original collateral, a security interest in
proceeds which remains perfected under paragraph (1) of subsection (d) of this section becomes
unperfected at the later of:
(1)  When the effectiveness of the filed financing statement lapses under section 4-9-515
or is terminated under section 4-9-513; or
(2)  The twenty-first day after the security interest attaches to the proceeds.
Source: L. 2001: Entire article R&RE, p. 1353, § 1, effective July 1.
Editor's note: This section is similar to former § 4-9-306 as it existed prior to 2001.
4-9-316.  Continued perfection of security interest following change in governing
law. (a)  A security interest perfected pursuant to the law of the jurisdiction designated in section
4-9-301 (1), 4-9-305 (c), 4-9-306.5 (d), or 4-9-306.7 (b) remains perfected until the earliest of:
(1)  The time perfection would have ceased under the law of that jurisdiction;
(2)  The expiration of four months after a change of the debtor's location to another
jurisdiction; or
(3)  The expiration of one year after a transfer of collateral to a person that thereby
becomes a debtor and is located in another jurisdiction.
(b)  If a security interest described in subsection (a) of this section becomes perfected
under the law of the other jurisdiction before the earliest time or event described in said
subsection, it remains perfected thereafter. If the security interest does not become perfected
under the law of the other jurisdiction before the earliest time or event, it becomes unperfected
and is deemed never to have been perfected as against a purchaser of the collateral for value.
(c)  A possessory security interest in collateral, other than goods covered by a certificate
of title and as-extracted collateral consisting of goods, remains continuously perfected if:
(1)  The collateral is located in one jurisdiction and subject to a security interest perfected
under the law of that jurisdiction;
(2)  Thereafter the collateral is brought into another jurisdiction; and
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(3)  Upon entry into the other jurisdiction, the security interest is perfected under the law
of the other jurisdiction.
(d)  Except as otherwise provided in subsection (e) of this section, a security interest in
goods covered by a certificate of title which is perfected by any method under the law of another
jurisdiction when the goods become covered by a certificate of title from this state remains
perfected until the security interest would have become unperfected under the law of the other
jurisdiction had the goods not become so covered.
(e)  A security interest described in subsection (d) of this section becomes unperfected as
against a purchaser of the goods for value and is deemed never to have been perfected as against
a purchaser of the goods for value if the applicable requirements for perfection under section 4-
9-311 (b) or 4-9-313 are not satisfied before the earlier of:
(1)  The time the security interest would have become unperfected under the law of the
other jurisdiction had the goods not become covered by a certificate of title from this state; or
(2)  The expiration of four months after the goods had become so covered.
(f)  A security interest in chattel paper, controllable accounts, controllable electronic
records, controllable payment intangibles, deposit accounts, letter-of-credit rights, or investment
property which is perfected under the law of the chattel paper's jurisdiction, the controllable
electronic record's jurisdiction, the bank's jurisdiction, the issuer's jurisdiction, a nominated
person's jurisdiction, the securities intermediary's jurisdiction, or the commodity intermediary's
jurisdiction, as applicable, remains perfected until the earlier of:
(1)  The time the security interest would have become unperfected under the law of that
jurisdiction; or
(2)  The expiration of four months after a change of the applicable jurisdiction to another
jurisdiction.
(g)  If a security interest described in subsection (f) of this section becomes perfected
under the law of the other jurisdiction before the earlier of the time or the end of the period
described in said subsection, it remains perfected thereafter. If the security interest does not
become perfected under the law of the other jurisdiction before the earlier of that time or the end
of that period, it becomes unperfected and is deemed never to have been perfected as against a
purchaser of the collateral for value.
(h)  The following rules apply to collateral to which a security interest attaches within
four months after the debtor changes its location to another jurisdiction:
(1)  A financing statement filed before the change pursuant to the law of the jurisdiction
designated in section 4-9-301 (1) or 4-9-305 (c) is effective to perfect a security interest in the
collateral if the financing statement would have been effective to perfect a security interest in the
collateral had the debtor not changed its location.
(2)  If a security interest perfected by a financing statement that is effective under
paragraph (1) of this subsection (h) becomes perfected under the law of the other jurisdiction
before the earlier of the time the financing statement would have become ineffective under the
law of the jurisdiction designated in section 4-9-301 (1) or 4-9-305 (c) or the expiration of the
four-month period, it remains perfected thereafter. If the security interest does not become
perfected under the law of the other jurisdiction before the earlier time or event, it becomes
unperfected and is deemed never to have been perfected as against a purchaser of the collateral
for value.
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(i)  If a financing statement naming an original debtor is filed pursuant to the law of the
jurisdiction designated in section 4-9-301 (1) or 4-9-305 (c) and the new debtor is located in
another jurisdiction, the following rules apply:
(1)  The financing statement is effective to perfect a security interest in collateral
acquired by the new debtor before, and within four months after, the new debtor becomes bound
under section 4-9-203 (d) if the financing statement would have been effective to perfect a
security interest in the collateral had the collateral been acquired by the original debtor.
(2)  A security interest that is perfected by the financing statement and that becomes
perfected under the law of the other jurisdiction before the earlier of the time the financing
statement would have become ineffective under the law of the jurisdiction designated in section
4-9-301 (1) or 4-9-305 (c) or the expiration of the four-month period remains perfected
thereafter. A security interest that is perfected by the financing statement but that does not
become perfected under the law of the other jurisdiction before the earlier time or event becomes
unperfected and is deemed never to have been perfected as against a purchaser of the collateral
for value.
Source: L. 2001: Entire article R&RE, p. 1354, § 1, effective July 1. L. 2012: (h) and (i)
added, (HB 12-1262), ch. 170, p. 598, § 5, effective July 1, 2013. L. 2023: IP(a) and IP(f)
amended, (SB 23-090), ch. 136, p. 554, § 61, effective August 7.
Editor's note: This section is similar to former § 4-9-103 as it existed prior to 2001.
4-9-317.  Interests that take priority over or take free of security interest or
agricultural lien. (a)  A security interest or agricultural lien is subordinate to the rights of:
(1)  A person entitled to priority under section 4-9-322; and
(2)  Except as otherwise provided in subsection (e) of this section, a person that becomes
a lien creditor before the security interest or agricultural lien is perfected.
(b)  Except as otherwise provided in subsection (e) of this section, a buyer, other than a
secured party, of goods, instruments, tangible documents, or a certificated security takes free of a
security interest or agricultural lien if the buyer gives value and receives delivery of the
collateral without knowledge of the security interest or agricultural lien and before it is
perfected.
(c)  Except as otherwise provided in subsection (e) of this section, a lessee of goods takes
free of a security interest or agricultural lien if the lessee gives value and receives delivery of the
collateral without knowledge of the security interest or agricultural lien and before it is
perfected.
(d)  Subject to subsections (f) to (i) of this section, a licensee of a general intangible or a
buyer, other than a secured party, of collateral other than goods, instruments, tangible
documents, or a certificated security takes free of a security interest if the licensee or buyer gives
value without knowledge of the security interest and before it is perfected.
(e)  Except as otherwise provided in sections 4-9-320 and 4-9-321, if a person files a
financing statement with respect to a purchase-money security interest before or within twenty
days after the debtor receives delivery of the collateral, or if a person perfects under article 6 of
title 42, C.R.S., a purchase-money security interest in a motor vehicle, other than inventory,
before or within thirty days after the debtor receives delivery of the motor vehicle, the security
Colorado Revised Statutes 2024 Page 271 of  368 Uncertified Printout
interest takes priority over the rights of a buyer, lessee, or lien creditor which arise between the
time the security interest attaches and the time of filing.
(f)  A buyer, other than a secured party, of chattel paper takes free of a security interest if,
without knowledge of the security interest and before it is perfected, the buyer gives value and:
(1)  Receives delivery of each authoritative tangible copy of the record evidencing the
chattel paper; and
(2)  If each authoritative electronic copy of the record evidencing the chattel paper can be
subjected to control under section 4-9-105, obtains control of each authoritative electronic copy.
(g)  A buyer of an electronic document takes free of a security interest if, without
knowledge of the security interest and before it is perfected, the buyer gives value and, if each
authoritative electronic copy of the document can be subjected to control under section 4-7-106,
obtains control of each authoritative electronic copy.
(h)  A buyer of a controllable electronic record takes free of a security interest if, without
knowledge of the security interest and before it is perfected, the buyer gives value and obtains
control of the controllable electronic record.
(i)  A buyer, other than a secured party, of a controllable account or a controllable
payment intangible takes free of a security interest if, without knowledge of the security interest
and before it is perfected, the buyer gives value and obtains control of the controllable account or
controllable payment intangible.
Source: L. 2001: Entire article R&RE, p. 1355, § 1, effective July 1. L. 2006: (b) and (d)
amended, p. 502, § 42, effective September 1. L. 2009: (e) amended, (SB 09-150), ch. 182, p.
801, § 1, effective April 22. L. 2012: (b) and (d) amended, (HB 12-1262), ch. 170, p. 598, § 6,
effective July 1, 2013. L. 2023: (b) and (d) amended and (f), (g), (h), and (i) added, (SB 23-090),
ch. 136, p. 554, § 62, effective August 7.
Editor's note: (1)  The provisions of this section are similar to former §§ 4-9-301 and 4-
2.5-307 (2) as they existed prior to 2001.
(2)  Colorado legislative change: In subsection (a)(2), Colorado did not adopt the
phrases "the earlier of the time" after the word "before" and "or a financing statement covering
the collateral is filed" at the end of the sentence.
4-9-318.  No interest retained in right to payment that is sold - rights and title of
seller of account or chattel paper with respect to creditors and purchasers. (a)  A debtor that
has sold an account, chattel paper, payment intangible, or promissory note does not retain a legal
or equitable interest in the collateral sold.
(b)  For purposes of determining the rights of creditors of, and purchasers for value of an
account or chattel paper from, a debtor that has sold an account or chattel paper, while the
buyer's security interest is unperfected, the debtor is deemed to have rights and title to the
account or chattel paper identical to those the debtor sold.
Source: L. 2001: Entire article R&RE, p. 1356, § 1, effective July 1.
4-9-319.  Rights and title of consignee with respect to creditors and purchasers. (a) 
Except as otherwise provided in subsection (b) of this section, for purposes of determining the
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rights of creditors of, and purchasers for value of goods from, a consignee, while the goods are
in the possession of the consignee, the consignee is deemed to have rights and title to the goods
identical to those the consignor had or had power to transfer.
(b)  For purposes of determining the rights of a creditor of a consignee, law other than
this article determines the rights and title of a consignee while goods are in the consignee's
possession if, under this part 3, a perfected security interest held by the consignor would have
priority over the rights of the creditor.
Source: L. 2001: Entire article R&RE, p. 1356, § 1, effective July 1.
4-9-320.  Buyer of goods. (a)  Except as otherwise provided in subsection (e) of this
section, a buyer in ordinary course of business, other than a person buying farm products from a
person engaged in farming operations, takes free of a security interest created by the buyer's
seller, even if the security interest is perfected and the buyer knows of its existence.
(b)  Except as otherwise provided in subsection (e) of this section, a buyer of goods from
a person who used or bought the goods for use primarily for personal, family, or household
purposes takes free of a security interest, even if perfected, if the buyer buys:
(1)  Without knowledge of the security interest;
(2)  For value;
(3)  Primarily for the buyer's personal, family, or household purposes; and
(4)  Before the filing of a financing statement covering the goods.
(c)  To the extent that it affects the priority of a security interest over a buyer of goods
under subsection (b) of this section, the period of effectiveness of a filing made in the
jurisdiction in which the seller is located is governed by section 4-9-316 (a) and (b).
(d)  A buyer in ordinary course of business buying oil, gas, or other minerals at the
wellhead or minehead or after extraction takes free of an interest arising out of an encumbrance.
(e)  Subsections (a) and (b) of this section do not affect a security interest in goods in the
possession of the secured party under section 4-9-313.
Source: L. 2001: Entire article R&RE, p. 1356, § 1, effective July 1.
Editor's note: This section is similar to former § 4-9-307 as it existed prior to 2001.
4-9-321.  Licensee of general intangible and lessee of goods in ordinary course of
business. (a)  In this section, "licensee in ordinary course of business" means a person that
becomes a licensee of a general intangible in good faith, without knowledge that the license
violates the rights of another person in the general intangible, and in the ordinary course from a
person in the business of licensing general intangibles of that kind. A person becomes a licensee
in the ordinary course if the license to the person comports with the usual or customary practices
in the kind of business in which the licensor is engaged or with the licensor's own usual or
customary practices.
(b)  A licensee in ordinary course of business takes its rights under a nonexclusive license
free of a security interest in the general intangible created by the licensor, even if the security
interest is perfected and the licensee knows of its existence.
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(c)  A lessee in ordinary course of business takes its leasehold interest free of a security
interest in the goods created by the lessor, even if the security interest is perfected and the lessee
knows of its existence.
Source: L. 2001: Entire article R&RE, p. 1357, § 1, effective July 1.
Editor's note: The provisions of this section are similar to former §§ 4-2.5-103 (1)(o)
and 4-2.5-307 (3) as they existed prior to 2001.
4-9-322.  Priorities among conflicting security interests in and agricultural liens on
same collateral. (a)  Except as otherwise provided in this section, priority among conflicting
security interests and agricultural liens in the same collateral is determined according to the
following rules:
(1)  Conflicting perfected security interests and agricultural liens rank according to
priority in time of filing or perfection. Priority dates from the earlier of the time a filing covering
the collateral is first made or the security interest or agricultural lien is first perfected, if there is
no period thereafter when there is neither filing nor perfection.
(2)  A perfected security interest or agricultural lien has priority over a conflicting
unperfected security interest or agricultural lien.
(3)  The first security interest or agricultural lien to attach or become effective has
priority if conflicting security interests and agricultural liens are unperfected.
(b)  For the purposes of paragraph (1) of subsection (a) of this section:
(1)  The time of filing or perfection as to a security interest in collateral is also the time
of filing or perfection as to a security interest in proceeds; and
(2)  The time of filing or perfection as to a security interest in collateral supported by a
supporting obligation is also the time of filing or perfection as to a security interest in the
supporting obligation.
(c)  Except as otherwise provided in subsection (f) of this section, a security interest in
collateral which qualifies for priority over a conflicting security interest under section 4-9-327,
4-9-328, 4-9-329, 4-9-330, or 4-9-331 also has priority over a conflicting security interest in:
(1)  Any supporting obligation for the collateral; and
(2)  Proceeds of the collateral if:
(A)  The security interest in proceeds is perfected;
(B)  The proceeds are cash proceeds or of the same type as the collateral; and
(C)  In the case of proceeds that are proceeds of proceeds, all intervening proceeds are
cash proceeds, proceeds of the same type as the collateral, or an account relating to the collateral.
(d)  Subject to subsection (e) of this section and except as otherwise provided in
subsection (f) of this section, if a security interest in chattel paper, deposit accounts, negotiable
documents, instruments, investment property, or letter-of-credit rights is perfected by a method
other than filing, conflicting perfected security interests in proceeds of the collateral rank
according to priority in time of filing.
(e)  Subsection (d) of this section applies only if the proceeds of the collateral are not
cash proceeds, chattel paper, negotiable documents, instruments, investment property, or letter-
of-credit rights.
(f)  Subsections (a) to (e) of this section are subject to:
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(1)  Subsection (g) of this section and the other provisions of this part 3;
(2)  Section 4-4-210 with respect to a security interest of a collecting bank;
(3)  Section 4-5-117.5 with respect to a security interest of an issuer or nominated person;
and
(4)  Section 4-9-110 with respect to a security interest arising under article 2 or 2.5 of this
title.
(g)  A perfected agricultural lien on collateral has priority over a conflicting security
interest in or agricultural lien on the same collateral if the statute creating the agricultural lien so
provides.
Source: L. 2001: Entire article R&RE, p. 1357, § 1, effective July 1.
Editor's note: This section is similar to former § 4-9-312 as it existed prior to 2001.
4-9-323.  Future advances. (a)  Except as otherwise provided in subsection (c) of this
section, for purposes of determining the priority of a perfected security interest under section 4-
9-322 (a)(1), perfection of the security interest dates from the time an advance is made to the
extent that the security interest secures an advance that:
(1)  Is made while the security interest is perfected only:
(A)  Under section 4-9-309 when it attaches; or
(B)  Temporarily under section 4-9-312 (e), (f), or (g); and
(2)  Is not made pursuant to a commitment entered into before or while the security
interest is perfected by a method other than under section 4-9-309 or 4-9-312 (e), (f), or (g).
(b)  Except as otherwise provided in subsection (c) of this section, a security interest is
subordinate to the rights of a person that becomes a lien creditor while the security interest is
perfected only to the extent that the security interest secures an advance made more than forty-
five days after the person becomes a lien creditor unless the advance is made:
(1)  Without knowledge of the lien; or
(2)  Pursuant to a commitment entered into without knowledge of the lien.
(c)  Subsections (a) and (b) of this section do not apply to a security interest held by a
secured party that is a buyer of accounts, chattel paper, payment intangibles, or promissory notes
or a consignor.
(d)  Except as otherwise provided in subsection (e) of this section, a buyer of goods takes
free of a security interest to the extent that it secures advances made after the earlier of:
(1)  The time the secured party acquires knowledge of the buyer's purchase; or
(2)  Forty-five days after the purchase.
(e)  Subsection (d) of this section does not apply if the advance is made pursuant to a
commitment entered into without knowledge of the buyer's purchase and before the expiration of
the forty-five-day period.
(f)  Except as otherwise provided in subsection (g) of this section, a lessee of goods takes
the leasehold interest free of a security interest to the extent that it secures advances made after
the earlier of:
(1)  The time the secured party acquires knowledge of the lease; or
(2)  Forty-five days after the lease contract becomes enforceable.
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(g)  Subsection (f) of this section does not apply if the advance is made pursuant to a
commitment entered into without knowledge of the lease and before the expiration of the forty-
five-day period.
Source: L. 2001: Entire article R&RE, p. 1359, § 1, effective July 1. L. 2002: IP(b)
amended, p. 938, § 5, effective August 7. L. 2023: IP(d) and IP(f) amended, (SB 23-090), ch.
136, p. 555, § 63, effective August 7.
Editor's note: The provisions of this section are similar to provisions of several former
sections as they existed prior to 2001. For a detailed comparison, see the comparative tables
located in the back of the index.
4-9-324.  Priority of purchase-money security interests. (a)  Except as otherwise
provided in subsection (g) of this section, a perfected purchase-money security interest in goods
other than inventory or livestock has priority over a conflicting security interest in the same
goods, and, except as otherwise provided in section 4-9-327, a perfected security interest in its
identifiable proceeds also has priority, if the purchase-money security interest is perfected when
the debtor receives possession of the collateral or within twenty days thereafter, or, if the
collateral is a motor vehicle, as defined in section 42-6-102, C.R.S., within thirty days thereafter.
(b)  Subject to subsection (c) of this section and except as otherwise provided in
subsection (g) of this section, a perfected purchase-money security interest in inventory has
priority over a conflicting security interest in the same inventory, has priority over a conflicting
security interest in chattel paper or an instrument constituting proceeds of the inventory and in
proceeds of the chattel paper, if so provided in section 4-9-330, and, except as otherwise
provided in section 4-9-327, also has priority in identifiable cash proceeds of the inventory to the
extent the identifiable cash proceeds are received on or before the delivery of the inventory to a
buyer, if:
(1)  The purchase-money security interest is perfected when the debtor receives
possession of the inventory;
(2)  The purchase-money secured party sends a signed notification to the holder of the
conflicting security interest;
(3)  The holder of the conflicting security interest receives the notification within five
years before the debtor receives possession of the inventory; and
(4)  The notification states that the person sending the notification has or expects to
acquire a purchase-money security interest in inventory of the debtor and describes the
inventory.
(c)  Paragraphs (2) to (4) of subsection (b) of this section apply only if the holder of the
conflicting security interest had filed a financing statement covering the same types of inventory:
(1)  If the purchase-money security interest is perfected by filing, before the date of the
filing; or
(2)  If the purchase-money security interest is temporarily perfected without filing or
possession under section 4-9-312 (f), before the beginning of the twenty-day period thereunder.
(d)  Subject to subsection (e) of this section and except as otherwise provided in
subsection (g) of this section, a perfected purchase-money security interest in livestock that are
farm products has priority over a conflicting security interest in the same livestock, and, except
Colorado Revised Statutes 2024 Page 276 of  368 Uncertified Printout
as otherwise provided in section 4-9-327, a perfected security interest in their identifiable
proceeds and identifiable products in their unmanufactured states also has priority, if:
(1)  The purchase-money security interest is perfected when the debtor receives
possession of the livestock;
(2)  The purchase-money secured party sends a signed notification to the holder of the
conflicting security interest;
(3)  The holder of the conflicting security interest receives the notification within six
months before the debtor receives possession of the livestock; and
(4)  The notification states that the person sending the notification has or expects to
acquire a purchase-money security interest in livestock of the debtor and describes the livestock.
(e)  Paragraphs (2) to (4) of subsection (d) of this section apply only if the holder of the
conflicting security interest had filed a financing statement covering the same types of livestock:
(1)  If the purchase-money security interest is perfected by filing, before the date of the
filing; or
(2)  If the purchase-money security interest is temporarily perfected without filing or
possession under section 4-9-312 (f), before the beginning of the twenty-day period thereunder.
(f)  Except as otherwise provided in subsection (g) of this section, a perfected purchase-
money security interest in software has priority over a conflicting security interest in the same
collateral, and, except as otherwise provided in section 4-9-327, a perfected security interest in
its identifiable proceeds also has priority, to the extent that the purchase-money security interest
in the goods in which the software was acquired for use has priority in the goods and proceeds of
the goods under this section.
(g)  If more than one security interest qualifies for priority in the same collateral under
subsection (a), (b), (d), or (f) of this section:
(1)  A security interest securing an obligation incurred as all or part of the price of the
collateral has priority over a security interest securing an obligation incurred for value given to
enable the debtor to acquire rights in or the use of collateral; and
(2)  In all other cases, section 4-9-322 (a) applies to the qualifying security interests.
Source: L. 2001: Entire article R&RE, p. 1360, § 1, effective July 1. L. 2009: (a)
amended, (SB 09-150), ch. 182, p. 801, § 2, effective April 22. L. 2023: (b)(2) and (d)(2)
amended, (SB 23-090), ch. 136, p. 555, § 64, effective August 7.
Editor's note: This section is similar to former § 4-9-312 as it existed prior to 2001.
4-9-325.  Priority of security interests in transferred collateral. (a)  Except as
otherwise provided in subsection (b) of this section, a security interest created by a debtor is
subordinate to a security interest in the same collateral created by another person if:
(1)  The debtor acquired the collateral subject to the security interest created by the other
person;
(2)  The security interest created by the other person was perfected when the debtor
acquired the collateral; and
(3)  There is no period thereafter when the security interest is unperfected.
(b)  Subsection (a) of this section subordinates a security interest only if the security
interest:
Colorado Revised Statutes 2024 Page 277 of  368 Uncertified Printout
(1)  Otherwise would have priority solely under section 4-9-322 (a) or 4-9-324; or
(2)  Arose solely under section 4-2-711 (3) or 4-2.5-508 (5).
Source: L. 2001: Entire article R&RE, p. 1362, § 1, effective July 1.
4-9-326.  Priority of security interests created by new debtor. (a)  Subject to
subsection (b) of this section, a security interest that is created by a new debtor in collateral in
which the new debtor has or acquires rights and is perfected solely by a filed financing statement
that would be ineffective to perfect the security interest but for the application of section 4-9-316
(i)(1) or 4-9-508 is subordinate to a security interest in the same collateral that is perfected other
than by such a filed financing statement.
(b)  The other provisions of this part 3 determine the priority among conflicting security
interests in the same collateral perfected by filed financing statements described in subsection (a)
of this section. However, if the security agreements to which a new debtor became bound as
debtor were not entered into by the same original debtor, the conflicting security interests rank
according to priority in time of the new debtor's having become bound.
Source: L. 2001: Entire article R&RE, p. 1362, § 1, effective July 1. L. 2012: Entire
section amended, (HB 12-1262), ch. 170, p. 599, § 7, effective July 1, 2013.
4-9-326.5.  Priority of security interest in controllable account, controllable
electronic record, and controllable payment intangible. A security interest in a controllable
account, controllable electronic record, or controllable payment intangible held by a secured
party having control of the account, electronic record, or payment intangible has priority over a
conflicting security interest held by a secured party that does not have control.
Source: L. 2023: Entire section added, (SB 23-090), ch. 136, p. 556, § 65, effective
August 7.
4-9-327.  Priority of security interests in deposit account. The following rules govern
priority among conflicting security interests in the same deposit account:
(1)  A security interest held by a secured party having control of the deposit account
under section 4-9-104 has priority over a conflicting security interest held by a secured party that
does not have control.
(2)  Except as otherwise provided in paragraphs (3) and (4) of this section, security
interests perfected by control under section 4-9-314 rank according to priority in time of
obtaining control.
(3)  Except as otherwise provided in paragraph (4) of this section, a security interest held
by the bank with which the deposit account is maintained has priority over a conflicting security
interest held by another secured party.
(4)  A security interest perfected by control under section 4-9-104 (a)(3) has priority over
a security interest held by the bank with which the deposit account is maintained.
Source: L. 2001: Entire article R&RE, p. 1363, § 1, effective July 1.
Colorado Revised Statutes 2024 Page 278 of  368 Uncertified Printout
4-9-328.  Priority of security interests in investment property. The following rules
govern priority among conflicting security interests in the same investment property:
(1)  A security interest held by a secured party having control of investment property
under section 4-9-106 has priority over a security interest held by a secured party that does not
have control of the investment property.
(2)  Except as otherwise provided in paragraphs (3) and (4) of this section, conflicting
security interests held by secured parties each of which has control under section 4-9-106 rank
according to priority in time of:
(A)  If the collateral is a security, obtaining control;
(B)  If the collateral is a security entitlement carried in a securities account and:
(i)  If the secured party obtained control under section 4-8-106 (d)(1), the secured party's
becoming the person for which the securities account is maintained;
(ii)  If the secured party obtained control under section 4-8-106 (d)(2), the securities
intermediary's agreement to comply with the secured party's entitlement orders with respect to
security entitlements carried or to be carried in the securities account; or
(iii)  If the secured party obtained control through another person under section 4-8-106
(d)(3), the time on which priority would be based under this paragraph (2) if the other person
were the secured party; or
(C)  If the collateral is a commodity contract carried with a commodity intermediary, the
satisfaction of the requirement for control specified in section 4-9-106 (b)(2) with respect to
commodity contracts carried or to be carried with the commodity intermediary.
(3)  A security interest held by a securities intermediary in a security entitlement or a
securities account maintained with the securities intermediary has priority over a conflicting
security interest held by another secured party.
(4)  A security interest held by a commodity intermediary in a commodity contract or a
commodity account maintained with the commodity intermediary has priority over a conflicting
security interest held by another secured party.
(5)  A security interest in a certificated security in registered form which is perfected by
taking delivery under section 4-9-313 (a) and not by control under section 4-9-314 has priority
over a conflicting security interest perfected by a method other than control.
(6)  Conflicting security interests created by a broker, securities intermediary, or
commodity intermediary which are perfected without control under section 4-9-106 rank
equally.
(7)  In all other cases, priority among conflicting security interests in investment property
is governed by sections 4-9-322 and 4-9-323.
Source: L. 2001: Entire article R&RE, p. 1363, § 1, effective July 1.
Editor's note: This section is similar to former § 4-9-115 (5) as it existed prior to 2001.
4-9-329.  Priority of security interests in letter-of-credit right. The following rules
govern priority among conflicting security interests in the same letter-of-credit right:
(1)  A security interest held by a secured party having control of the letter-of-credit right
under section 4-9-107 has priority to the extent of its control over a conflicting security interest
held by a secured party that does not have control.
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(2)  Security interests perfected by control under section 4-9-314 rank according to
priority in time of obtaining control.
Source: L. 2001: Entire article R&RE, p. 1364, § 1, effective July 1.
4-9-330.  Priority of purchaser of chattel paper or instrument. (a)  A purchaser of
chattel paper has priority over a security interest in the chattel paper which is claimed merely as
proceeds of inventory subject to a security interest if:
(1)  In good faith and in the ordinary course of the purchaser's business, the purchaser
gives new value, takes possession of each authoritative tangible copy of the record evidencing
the chattel paper, and obtains control under section 4-9-105 of each authoritative electronic copy
of the record evidencing the chattel paper; and
(2)  The authoritative copies of the record evidencing the chattel paper do not indicate
that the chattel paper has been assigned to an identified assignee other than the purchaser.
(b)  A purchaser of chattel paper has priority over a security interest in the chattel paper
which is claimed other than merely as proceeds of inventory subject to a security interest if the
purchaser gives new value, takes possession of each authoritative tangible copy of the record
evidencing the chattel paper, and obtains control under section 4-9-105 of each authoritative
electronic copy of the record evidencing the chattel paper in good faith, in the ordinary course of
the purchaser's business, and without knowledge that the purchase violates the rights of the
secured party.
(c)  Except as otherwise provided in section 4-9-327, a purchaser having priority in
chattel paper under subsection (a) or (b) of this section also has priority in proceeds of the chattel
paper to the extent that:
(1)  Section 4-9-322 provides for priority in the proceeds; or
(2)  The proceeds consist of the specific goods covered by the chattel paper or cash
proceeds of the specific goods, even if the purchaser's security interest in the proceeds is
unperfected.
(d)  Except as otherwise provided in section 4-9-331 (a), a purchaser of an instrument has
priority over a security interest in the instrument perfected by a method other than possession if
the purchaser gives value and takes possession of the instrument in good faith and without
knowledge that the purchase violates the rights of the secured party.
(e)  For purposes of subsections (a) and (b) of this section, the holder of a purchase-
money security interest in inventory gives new value for chattel paper constituting proceeds of
the inventory.
(f)  For purposes of subsections (b) and (d) of this section, if the authoritative copies of
the record evidencing chattel paper or an instrument indicates that the chattel paper or instrument
has been assigned to an identified secured party other than the purchaser, a purchaser of the
chattel paper or instrument has knowledge that the purchase violates the rights of the secured
party.
Source: L. 2001: Entire article R&RE, p. 1364, § 1, effective July 1. L. 2023: (a), (b),
and (f) amended, (SB 23-090), ch. 136, p. 556, § 66, effective August 7.
Editor's note: This section is similar to former § 4-9-308 as it existed prior to 2001.
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4-9-331.  Priority of rights of purchasers of controllable accounts, controllable
electronic records, controllable payment intangibles, documents, instruments, and
securities under other articles - priority of interests in financial assets and security
entitlements and protection against assertion of claim under articles 8 and 12. (a)  This
article 9 does not limit the rights of a holder in due course of a negotiable instrument, a holder to
which a negotiable document of title has been duly negotiated, a protected purchaser of a
security, or a qualifying purchaser of a controllable account, controllable electronic record, or
controllable payment intangible. These holders or purchasers take priority over an earlier
security interest, even if perfected, to the extent provided in articles 3, 7, 8, and 12 of this title 4.
(b)  This article 9 does not limit the rights of or impose liability on a person to the extent
that the person is protected against the assertion of a claim under article 8 or 12 of this title 4.
(c)  Filing under this article does not constitute notice of a claim or defense to the
holders, or purchasers, or persons described in subsections (a) and (b) of this section.
Source: L. 2001: Entire article R&RE, p. 1365, § 1, effective July 1. L. 2002: (b)
amended, p. 938, § 6, effective August 7. L. 2023: (a) and (b) amended, (SB 23-090), ch. 136, p.
557, § 67, effective August 7.
Editor's note: This section is similar to former § 4-9-309 as it existed prior to 2001.
4-9-332.  Transfer of money - transfer of funds from deposit account. (a)  A
transferee of money takes the money free of a security interest if the transferee receives
possession of the money without acting in collusion with the debtor in violating the rights of the
secured party.
(b)  A transferee of funds from a deposit account takes the funds free of a security
interest in the deposit account if the transferee receives the funds without acting in collusion with
the debtor in violating the rights of the secured party.
Source: L. 2001: Entire article R&RE, p. 1366, § 1, effective July 1. L. 2023: Entire
section amended, (SB 23-090), ch. 136, p. 557, § 68, effective August 7.
4-9-333.  Priority of certain liens arising by operation of law. (a)  In this section,
"possessory lien" means an interest, other than a security interest or an agricultural lien:
(1)  Which secures payment or performance of an obligation for services or materials
furnished with respect to goods by a person in the ordinary course of the person's business;
(2)  Which is created by statute or rule of law in favor of the person; and
(3)  Whose effectiveness depends on the person's possession of the goods.
(b)  A possessory lien on goods has priority over a security interest in the goods if the
lien is created by a statute that expressly so provides.
Source: L. 2001: Entire article R&RE, p. 1366, § 1, effective July 1.
Editor's note: (1)  This section is similar to former § 4-9-310 as it existed prior to 2001.
(2)  Colorado legislative change: Colorado substituted the word "if" for "unless" and
substituted the phrase "so provides" for "provides otherwise" in subsection (b).
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4-9-334.  Priority of security interests in fixtures and crops. (a)  A security interest
under this article may be created in goods that are fixtures or may continue in goods that become
fixtures. A security interest does not exist under this article in ordinary building materials
incorporated into an improvement on land.
(b)  This article does not prevent creation of an encumbrance upon fixtures under real
property law.
(c)  In cases not governed by subsections (d) to (h) of this section, a security interest in
fixtures is subordinate to a conflicting interest of an encumbrancer or owner of the related real
property other than the debtor.
(d)  Except as otherwise provided in subsection (h) of this section, a perfected security
interest in fixtures has priority over a conflicting interest of an encumbrancer or owner of the
real property if the debtor has an interest of record in or is in possession of the real property and:
(1)  The security interest is a purchase-money security interest;
(2)  The interest of the encumbrancer or owner arises before the goods become fixtures;
and
(3)  The security interest is perfected by a fixture filing before the goods become fixtures
or within twenty days thereafter.
(e)  A perfected security interest in fixtures has priority over a conflicting interest of an
encumbrancer or owner of the real property if:
(1)  The debtor has an interest of record in the real property or is in possession of the real
property and the security interest:
(A)  Is perfected by a fixture filing before the interest of the encumbrancer or owner is of
record; and
(B)  Has priority over any conflicting interest of a predecessor in title of the
encumbrancer or owner;
(2)  Before the goods become fixtures, the security interest is perfected by any method
permitted by this article and the fixtures are readily removable:
(A)  Factory or office machines;
(B)  Equipment that is not primarily used or leased for use in the operation of the real
property; or
(C)  Replacements of domestic appliances that are consumer goods;
(3)  The conflicting interest is a lien on the real property obtained by legal or equitable
proceedings after the security interest was perfected by any method permitted by this article; or
(4)  The security interest is:
(A)  Created in a manufactured home in a manufactured-home transaction; and
(B)  Perfected pursuant to a statute described in section 4-9-311 (a)(2).
(f)  A security interest in fixtures, whether or not perfected, has priority over a conflicting
interest of an encumbrancer or owner of the real property if:
(1)  The encumbrancer or owner has, in a signed record, consented to the security interest
or disclaimed an interest in the goods as fixtures; or
(2)  The debtor has a right to remove the goods as against the encumbrancer or owner.
(g)  The priority of the security interest under paragraph (2) of subsection (f) of this
section continues for a reasonable time if the debtor's right to remove the goods as against the
encumbrancer or owner terminates.
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(h)  A mortgage is a construction mortgage to the extent that it secures an obligation
incurred for the construction of an improvement on land, including the acquisition cost of the
land, if a recorded record of the mortgage so indicates. Except as otherwise provided in
subsections (e) and (f) of this section, a security interest in fixtures is subordinate to a
construction mortgage if a record of the mortgage is recorded before the goods become fixtures
and the goods become fixtures before the completion of the construction. A mortgage has this
priority to the same extent as a construction mortgage to the extent that it is given to refinance a
construction mortgage.
(i)  A perfected security interest in crops growing on real property has priority over a
conflicting interest of an encumbrancer or owner of the real property if the debtor has an interest
of record in or is in possession of the real property.
Source: L. 2001: Entire article R&RE, p. 1366, § 1, effective July 1. L. 2023: (f)(1)
amended, (SB 23-090), ch. 136, p. 557, § 69, effective August 7.
Editor's note: This section is similar to former § 4-9-313 as it existed prior to 2001.
4-9-335.  Accessions. (a)  A security interest may be created in an accession and
continues in collateral that becomes an accession.
(b)  If a security interest is perfected when the collateral becomes an accession, the
security interest remains perfected in the collateral.
(c)  Except as otherwise provided in subsection (d) of this section, the other provisions of
this part 3 determine the priority of a security interest in an accession.
(d)  A security interest in an accession is subordinate to a security interest in the whole
which is perfected by compliance with the requirements of a certificate-of-title statute under
section 4-9-311 (b).
(e)  After default, subject to part 6 of this article, a secured party may remove an
accession from other goods if the security interest in the accession has priority over the claims of
every person having an interest in the whole.
(f)  A secured party that removes an accession from other goods under subsection (e) of
this section shall promptly reimburse any holder of a security interest or other lien on, or owner
of, the whole or of the other goods, other than the debtor, for the cost of repair of any physical
injury to the whole or the other goods. The secured party need not reimburse the holder or owner
for any diminution in value of the whole or the other goods caused by the absence of the
accession removed or by any necessity for replacing it. A person entitled to reimbursement may
refuse permission to remove until the secured party gives adequate assurance for the
performance of the obligation to reimburse.
Source: L. 2001: Entire article R&RE, p. 1368, § 1, effective July 1.
4-9-336.  Commingled goods. (a)  In this section, "commingled goods" means goods
that are physically united with other goods in such a manner that their identity is lost in a product
or mass.
(b)  A security interest does not exist in commingled goods as such. However, a security
interest may attach to a product or mass that results when goods become commingled goods.
Colorado Revised Statutes 2024 Page 283 of  368 Uncertified Printout
(c)  If collateral becomes commingled goods, a security interest attaches to the product or
mass.
(d)  If a security interest in collateral is perfected before the collateral becomes
commingled goods, the security interest that attaches to the product or mass under subsection (c)
of this section is perfected.
(e)  Except as otherwise provided in subsection (f) of this section, the other provisions of
this part 3 determine the priority of a security interest that attaches to the product or mass under
subsection (c) of this section.
(f)  If more than one security interest attaches to the product or mass under subsection (c)
of this section, the following rules determine priority:
(1)  A security interest that is perfected under subsection (d) of this section has priority
over a security interest that is unperfected at the time the collateral becomes commingled goods.
(2)  If more than one security interest is perfected under subsection (d) of this section, the
security interests rank equally in proportion to the value of the collateral at the time it became
commingled goods.
Source: L. 2001: Entire article R&RE, p. 1368, § 1, effective July 1.
4-9-337.  Priority of security interests in goods covered by certificate of title. If,
while a security interest in goods is perfected by any method under the law of another
jurisdiction, this state issues a certificate of title that does not show that the goods are subject to
the security interest or contain a statement that they may be subject to security interests not
shown on the certificate:
(1)  A buyer of the goods, other than a person in the business of selling goods of that
kind, takes free of the security interest if the buyer gives value and receives delivery of the goods
after issuance of the certificate and without knowledge of the security interest; and
(2)  The security interest is subordinate to a conflicting security interest in the goods that
attaches, and is perfected under section 4-9-311 (b), after issuance of the certificate and without
the conflicting secured party's knowledge of the security interest.
Source: L. 2001: Entire article R&RE, p. 1369, § 1, effective July 1.
4-9-338.  Priority of security interest or agricultural lien perfected by filed financing
statement providing certain incorrect information. If a security interest or agricultural lien is
perfected by a filed financing statement providing information described in section 4-9-516
(b)(5) which is incorrect at the time the financing statement is filed:
(1)  The security interest or agricultural lien is subordinate to a conflicting perfected
security interest in the collateral to the extent that the holder of the conflicting security interest
gives value in reasonable reliance upon the incorrect information; and
(2)  A purchaser, other than a secured party, of the collateral takes free of the security
interest or agricultural lien to the extent that, in reasonable reliance upon the incorrect
information, the purchaser gives value and, in the case of tangible chattel paper, tangible
documents, goods, instruments, or a security certificate, receives delivery of the collateral.
Colorado Revised Statutes 2024 Page 284 of  368 Uncertified Printout
Source: L. 2001: Entire article R&RE, p. 1369, § 1, effective July 1. L. 2006: (2)
amended, p. 502, § 43, effective September 1.
4-9-339.  Priority subject to subordination. This article does not preclude
subordination by agreement by a person entitled to priority.
Source: L. 2001: Entire article R&RE, p. 1370, § 1, effective July 1.
Editor's note: This section is similar to former § 4-9-316 as it existed prior to 2001.
4-9-340.  Effectiveness of right of recoupment or set-off against deposit account. (a) 
Except as otherwise provided in subsection (c) of this section, a bank with which a deposit
account is maintained may exercise any right of recoupment or set-off against a secured party
that holds a security interest in the deposit account.
(b)  Except as otherwise provided in subsection (c) of this section, the application of this
article to a security interest in a deposit account does not affect a right of recoupment or set-off
of the secured party as to a deposit account maintained with the secured party.
(c)  The exercise by a bank of a set-off against a deposit account is ineffective against a
secured party that holds a security interest in the deposit account which is perfected by control
under section 4-9-104 (a)(3), if the set-off is based on a claim against the debtor.
Source: L. 2001: Entire article R&RE, p. 1370, § 1, effective July 1.
4-9-341.  Bank's rights and duties with respect to deposit account. Except as
otherwise provided in section 4-9-340 (c), and unless the bank otherwise agrees in a signed
record, a bank's rights and duties with respect to a deposit account maintained with the bank are
not terminated, suspended, or modified by:
(1)  The creation, attachment, or perfection of a security interest in the deposit account;
(2)  The bank's knowledge of the security interest; or
(3)  The bank's receipt of instructions from the secured party.
Source: L. 2001: Entire article R&RE, p. 1370, § 1, effective July 1. L. 2023: IP
amended, (SB 23-090), ch. 136, p. 557, § 70, effective August 7.
4-9-342.  Bank's right to refuse to enter into or disclose existence of control
agreement. This article does not require a bank to enter into an agreement of the kind described
in section 4-9-104 (a)(2), even if its customer so requests or directs. A bank that has entered into
such an agreement is not required to confirm the existence of the agreement to another person
unless requested to do so by its customer.
Source: L. 2001: Entire article R&RE, p. 1370, § 1, effective July 1.
PART 4
RIGHTS OF THIRD PARTIES
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4-9-401.  Alienability of debtor's rights. (a)  Except as otherwise provided in subsection
(b) of this section and sections 4-9-406, 4-9-407, 4-9-408, and 4-9-409, whether a debtor's rights
in collateral may be voluntarily or involuntarily transferred is governed by law other than this
article.
(b)  An agreement between the debtor and secured party which prohibits a transfer of the
debtor's rights in collateral or makes the transfer a default does not prevent the transfer from
taking effect.
(c)  This section shall not be construed as being inconsistent with criminal sanctions now
or hereafter applicable to transactions involving collateral or as justifying any transfer that would
otherwise be a violation of law.
Source: L. 2001: Entire article R&RE, p. 1371, § 1, effective July 1.
Editor's note: (1)  This section is similar to former § 4-9-311 as it existed prior to 2001.
(2)  Colorado legislative change: Colorado added subsection (c).
4-9-402.  Secured party not obligated on contract of debtor or in tort. The existence
of a security interest, agricultural lien, or authority given to a debtor to dispose of or use
collateral, without more, does not subject a secured party to liability in contract or tort for the
debtor's acts or omissions.
Source: L. 2001: Entire article R&RE, p. 1371, § 1, effective July 1.
Editor's note: This section is similar to former § 4-9-317 as it existed prior to 2001.
4-9-403.  Agreement not to assert defenses against assignee. (a)  In this section,
"value" has the meaning provided in section 4-3-303 (a).
(b)  Except as otherwise provided in this section, an agreement between an account
debtor and an assignor not to assert against an assignee any claim or defense that the account
debtor may have against the assignor is enforceable by an assignee that takes an assignment:
(1)  For value;
(2)  In good faith;
(3)  Without notice of a claim of a property or possessory right to the property assigned;
and
(4)  Without notice of a defense or claim in recoupment of the type that may be asserted
against a person entitled to enforce a negotiable instrument under section 4-3-305 (a).
(c)  Subsection (b) of this section does not apply to defenses of a type that may be
asserted against a holder in due course of a negotiable instrument under section 4-3-305 (b).
(d)  In a consumer transaction, if a record evidences the account debtor's obligation, law
other than this article requires that the record include a statement to the effect that the rights of
an assignee are subject to claims or defenses that the account debtor could assert against the
original obligee, and the record does not include such a statement:
(1)  The record has the same effect as if the record included such a statement; and
(2)  The account debtor may assert against an assignee those claims and defenses that
would have been available if the record included such a statement.
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(e)  This section is subject to law other than this article which establishes a different rule
for an account debtor who is an individual and who incurred the obligation primarily for
personal, family, or household purposes.
(f)  Except as otherwise provided in subsection (d) of this section, this section does not
displace law other than this article which gives effect to an agreement by an account debtor not
to assert a claim or defense against an assignee.
Source: L. 2001: Entire article R&RE, p. 1371, § 1, effective July 1.
Editor's note: This section is similar to former § 4-9-206 as it existed prior to 2001.
4-9-404.  Rights acquired by assignee; claims and defenses against assignee. (a) 
Unless an account debtor has made an enforceable agreement not to assert defenses or claims,
and subject to subsections (b) to (e) of this section, the rights of an assignee are subject to:
(1)  All terms of the agreement between the account debtor and assignor and any defense
or claim in recoupment arising from the transaction that gave rise to the contract; and
(2)  Any other defense or claim of the account debtor against the assignor which accrues
before the account debtor receives a notification of the assignment signed by the assignor or the
assignee.
(b)  Subject to subsection (c) of this section and except as otherwise provided in
subsection (d) of this section, the claim of an account debtor against an assignor may be asserted
against an assignee under subsection (a) of this section only to reduce the amount the account
debtor owes.
(c)  This section is subject to law other than this article which establishes a different rule
for an account debtor who is an individual and who incurred the obligation primarily for
personal, family, or household purposes.
(d)  In a consumer transaction, if a record evidences the account debtor's obligation, law
other than this article requires that the record include a statement to the effect that the account
debtor's recovery against an assignee with respect to claims and defenses against the assignor
may not exceed amounts paid by the account debtor under the record, and the record does not
include such a statement, the extent to which a claim of an account debtor against the assignor
may be asserted against an assignee is determined as if the record included such a statement.
(e)  This section does not apply to an assignment of a health-care-insurance receivable.
Source: L. 2001: Entire article R&RE, p. 1372, § 1, effective July 1. L. 2023: (a)(2)
amended, (SB 23-090), ch. 136, p. 558, § 71, effective August 7.
Editor's note: This section is similar to former § 4-9-318 (1) as it existed prior to 2001.
4-9-405.  Modification of assigned contract. (a)  A modification of or substitution for
an assigned contract is effective against an assignee if made in good faith. The assignee acquires
corresponding rights under the modified or substituted contract. The assignment may provide
that the modification or substitution is a breach of contract by the assignor. This subsection (a) is
subject to subsections (b) to (d) of this section.
(b)  Subsection (a) of this section applies to the extent that:
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(1)  The right to payment or a part thereof under an assigned contract has not been fully
earned by performance; or
(2)  The right to payment or a part thereof has been fully earned by performance and the
account debtor has not received notification of the assignment under section 4-9-406 (a).
(c)  This section is subject to law other than this article which establishes a different rule
for an account debtor who is an individual and who incurred the obligation primarily for
personal, family, or household purposes.
(d)  This section does not apply to an assignment of a health-care-insurance receivable.
Source: L. 2001: Entire article R&RE, p. 1373, § 1, effective July 1.
Editor's note: This section is similar to former § 4-9-318 (2) as it existed prior to 2001.
4-9-406.  Discharge of account debtor - notification of assignment - identification
and proof of assignment - restrictions on assignment of accounts, chattel paper, payment
intangibles, and promissory notes ineffective. (a)  Subject to subsections (b) to (i) and (m) of
this section, an account debtor on an account, chattel paper, or a payment intangible may
discharge its obligation by paying the assignor until, but not after, the account debtor receives a
notification, signed by the assignor or the assignee, that the amount due or to become due has
been assigned and that payment is to be made to the assignee. After receipt of the notification,
the account debtor may discharge its obligation by paying the assignee and may not discharge
the obligation by paying the assignor.
(b)  Subject to subsections (h) and (m) of this section, notification is ineffective under
subsection (a) of this section: 
(1)  If it does not reasonably identify the rights assigned;
(2)  To the extent that an agreement between an account debtor and a seller of a payment
intangible limits the account debtor's duty to pay a person other than the seller and the limitation
is effective under law other than this article; or
(3)  At the option of an account debtor, if the notification notifies the account debtor to
make less than the full amount of any installment or other periodic payment to the assignee, even
if:
(A)  Only a portion of the account, chattel paper, or payment intangible has been
assigned to that assignee;
(B)  A portion has been assigned to another assignee; or
(C)  The account debtor knows that the assignment to that assignee is limited.
(c)  Subject to subsections (h) and (m) of this section, if requested by the account debtor,
an assignee shall seasonably furnish reasonable proof that the assignment has been made. Unless
the assignee complies, the account debtor may discharge its obligation by paying the assignor,
even if the account debtor has received a notification under subsection (a) of this section.
(d)  In this subsection (d), "promissory note" includes a negotiable instrument that
evidences chattel paper. Except as otherwise provided in subsections (e), (k), (l), and (m) of this
section and sections 4-2.5-303, 4-9-407, 8-80-103, 8-42-124, 13-64-210, and 24-4.1-114, and
subject to subsection (h) of this section, a term in an agreement between an account debtor and
an assignor or in a promissory note is ineffective to the extent that it:
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(1)  Prohibits, restricts, or requires the consent of the account debtor or person obligated
on the promissory note to the assignment or transfer of, or the creation, attachment, perfection,
or enforcement of a security interest in, the account, chattel paper, payment intangible, or
promissory note; or
(2)  Provides that the assignment or transfer or the creation, attachment, perfection, or
enforcement of the security interest may give rise to a default, breach, right of recoupment,
claim, defense, termination, right of termination, or remedy under the account, chattel paper,
payment intangible, or promissory note.
(e)  Subsection (d) of this section does not apply to the sale of a payment intangible or
promissory note, other than a sale pursuant to a disposition under section 4-9-610 or an
acceptance of collateral under section 4-9-620.
(f)  Except as otherwise provided in sections 4-2.5-303, 4-9-407, 8-80-103, 8-42-124, 13-
64-210, and 24-4.1-114, C.R.S., and subject to subsections (h) and (i) of this section, a rule of
law, statute, or regulation that prohibits, restricts, or requires the consent of a government,
governmental body or official, or account debtor to the assignment or transfer of, or creation of a
security interest in, an account or chattel paper is ineffective to the extent that the rule of law,
statute, or regulation:
(1)  Prohibits, restricts, or requires the consent of the government, governmental body or
official, or account debtor to the assignment or transfer of, or the creation, attachment,
perfection, or enforcement of a security interest in the account or chattel paper; or
(2)  Provides that the assignment or transfer or the creation, attachment, perfection, or
enforcement of the security interest may give rise to a default, breach, right of recoupment,
claim, defense, termination, right of termination, or remedy under the account or chattel paper.
(g)  Subject to subsections (h) and (m) of this section, an account debtor may not waive
or vary its option under subsection (b)(3) of this section.
(h)  This section is subject to law other than this article which establishes a different rule
for an account debtor who is an individual and who incurred the obligation primarily for
personal, family, or household purposes.
(i)  This section does not apply to an assignment of a health-care-insurance receivable.
(j)  Reserved.
(k)  Subsection (d) of this section does not apply to the assignment or the transfer of, or
the creation of a security interest in:
(1)  A claim or right to receive compensation for injuries or sickness as described in 26
U.S.C. sec. 104 (a)(1) or (2), as amended; or
(2)  A claim or right to receive benefits under a special needs trust as described in 42
U.S.C. sec. 1396p (d)(4), as amended.
(l)  As specified in section 7-90-104, C.R.S., subsections (d) to (f) of this section do not
apply to the assignment or the transfer of, or the creation of a security interest in, an owner's
interest as defined in section 7-90-102 (44), C.R.S.
(m)  Subsections (a), (b), (c), and (g) of this section do not apply to a controllable
account or controllable payment intangible.
Source: L. 2001: Entire article R&RE, p. 1373, § 1, effective July 1. L. 2012: (e)
amended, (HB 12-1262), ch. 170, p. 599, § 8, effective July 1, 2013. L. 2016: IP(d) and IP(k)
amended and (l) added, (HB 16-1270), ch. 119, p. 339, § 1, effective August 10. L. 2023: (a),
Colorado Revised Statutes 2024 Page 289 of  368 Uncertified Printout
IP(b), (c), IP(d), and (g) amended and (m) added, (SB 23-090), ch. 136, p. 558, § 72, effective
August 7.
Editor's note: (1)  This section is similar to former § 4-9-318 as it existed prior to 2001.
(2)  Colorado legislative change: Colorado substituted the word "payment" for the word
"general" in subsection (b)(3)(A), added the phrase "assignment or transfer or the" in subsection
(d)(2), and added subsections (k) and (l).
4-9-407.  Restrictions on creation or enforcement of security interest in leasehold
interest or in lessor's residual interest. (a)  Except as otherwise provided in subsection (b) of
this section, a term in a lease agreement is ineffective to the extent that it:
(1)  Prohibits, restricts, or requires the consent of a party to the lease to the assignment or
transfer of, or the creation, attachment, perfection, or enforcement of a security interest in, an
interest of a party under the lease contract or in the lessor's residual interest in the goods; or
(2)  Provides that the assignment or transfer or the creation, attachment, perfection, or
enforcement of the security interest may give rise to a default, breach, right of recoupment,
claim, defense, termination, right of termination, or remedy under the lease.
(b)  Except as otherwise provided in section 4-2.5-303 (7), a term described in paragraph
(2) of subsection (a) of this section is effective to the extent that there is:
(1)  A transfer by the lessee of the lessee's right of possession or use of the goods in
violation of the term; or
(2)  A delegation of a material performance of either party to the lease contract in
violation of the term.
(c)  The creation, attachment, perfection, or enforcement of a security interest in the
lessor's interest under the lease contract or the lessor's residual interest in the goods is not a
transfer that materially impairs the lessee's prospect of obtaining return performance or
materially changes the duty of or materially increases the burden or risk imposed on the lessee
within the purview of section 4-2.5-303 (4) unless, and then only to the extent that, enforcement
actually results in a delegation of material performance of the lessor.
Source: L. 2001: Entire article R&RE, p. 1375, § 1, effective July 1.
Editor's note: This section is similar to former § 4-2.5-303 as it existed prior to 2001.
4-9-408.  Restrictions on assignment of promissory notes, health-care-insurance
receivables, and certain general intangibles ineffective. (a)  Except as otherwise provided in
subsection (b) of this section, a term in a promissory note or in an agreement between an account
debtor and a debtor which relates to a health-care-insurance receivable or a general intangible,
including a contract, permit, license, or franchise, and which term prohibits, restricts, or requires
the consent of the person obligated on the promissory note or the account debtor to, the
assignment or transfer of, or creation, attachment, or perfection of a security interest in, the
promissory note, health-care-insurance receivable, or general intangible, is ineffective to the
extent that the term:
(1)  Would impair the creation, attachment, or perfection of a security interest; or
Colorado Revised Statutes 2024 Page 290 of  368 Uncertified Printout
(2)  Provides that the assignment or transfer or the creation, attachment, or perfection of
the security interest may give rise to a default, breach, right of recoupment, claim, defense,
termination, right of termination, or remedy under the promissory note, health-care-insurance
receivable, or general intangible.
(b)  Subsection (a) of this section applies to a security interest in a payment intangible or
promissory note only if the security interest arises out of a sale of the payment intangible or
promissory note, other than a sale pursuant to a disposition under section 4-9-610 or an
acceptance of collateral under section 4-9-620.
(c)  Except as provided in sections 8-80-103 and 8-42-124, C.R.S., a rule of law, statute,
or regulation that prohibits, restricts, or requires the consent of a government, governmental
body or official, person obligated on a promissory note, or account debtor to the assignment or
transfer of, or creation of a security interest in, a promissory note, health-care-insurance
receivable, or general intangible, including a contract, permit, license, or franchise between an
account debtor and a debtor, is ineffective to the extent that the rule of law, statute, or regulation:
(1)  Would impair the creation, attachment, or perfection of a security interest; or
(2)  Provides that the assignment or transfer or the creation, attachment, or perfection of
the security interest may give rise to a default, breach, right of recoupment, claim, defense,
termination, right of termination, or remedy under the promissory note, health-care-insurance
receivable, or general intangible.
(d)  To the extent that a term in a promissory note or in an agreement between an account
debtor and a debtor which relates to a health-care-insurance receivable or general intangible or a
rule of law, statute, or regulation described in subsection (c) of this section would be effective
under law other than this article but is ineffective under subsection (a) or (c) of this section, the
creation, attachment, or perfection of a security interest in the promissory note, health-care-
insurance receivable, or general intangible:
(1)  Is not enforceable against the person obligated on the promissory note or the account
debtor;
(2)  Does not impose a duty or obligation on the person obligated on the promissory note
or the account debtor;
(3)  Does not require the person obligated on the promissory note or the account debtor to
recognize the security interest, pay or render performance to the secured party, or accept
payment or performance from the secured party;
(4)  Does not entitle the secured party to use or assign the debtor's rights under the
promissory note, health-care-insurance receivable, or general intangible, including any related
information or materials furnished to the debtor in the transaction giving rise to the promissory
note, health-care-insurance receivable, or general intangible;
(5)  Does not entitle the secured party to use, assign, possess, or have access to any trade
secrets or confidential information of the person obligated on the promissory note or the account
debtor; and
(6)  Does not entitle the secured party to enforce the security interest in the promissory
note, health-care-insurance receivable, or general intangible.
(e)  Reserved.
(f)  Subsections (a) and (c) of this section do not apply to the assignment or the transfer
of, or the creation of a security interest in:
Colorado Revised Statutes 2024 Page 291 of  368 Uncertified Printout
(1)  A claim or right to receive compensation for injuries or sickness as described in 26
U.S.C. sec. 104 (a)(1) or (2), as amended; or
(2)  A claim or right to receive benefits under a special needs trust as described in 42
U.S.C. sec. 1396p (d)(4), as amended.
(g)  As specified in section 7-90-104, C.R.S., this section does not apply to the
assignment or the transfer of, or the creation of a security interest in, an owner's interest as
defined in section 7-90-102 (44), C.R.S.
(h)  In this section, "promissory note" includes a negotiable instrument that evidences
chattel paper.
Source: L. 2001: Entire article R&RE, p. 1376, § 1, effective July 1. L. 2012: (b)
amended, (HB 12-1262), ch. 170, p. 599, § 9, effective July 1, 2013. L. 2016: IP(f) amended and
(g) added, (HB 16-1270), ch. 119, p. 339, § 2, effective August 10. L. 2023: (h) added, (SB 23-
090), ch. 136, p. 559, § 73, effective August 7.
Editor's note: Colorado legislative change: Colorado added the phrase "Except as
provided in sections 8-80-103 and 8-42-124, C.R.S.," to subsection (c) and added subsections (f)
and (g).
4-9-409.  Restrictions on assignment of letter-of-credit rights ineffective. (a)  A term
in a letter of credit or a rule of law, statute, regulation, custom, or practice applicable to the letter
of credit which prohibits, restricts, or requires the consent of an applicant, issuer, or nominated
person to a beneficiary's assignment of or creation of a security interest in a letter-of-credit right
is ineffective to the extent that the term or rule of law, statute, regulation, custom, or practice:
(1)  Would impair the creation, attachment, or perfection of a security interest in the
letter-of-credit right; or
(2)  Provides that the assignment or the creation, attachment, or perfection of the security
interest may give rise to a default, breach, right of recoupment, claim, defense, termination, right
of termination, or remedy under the letter-of-credit right.
(b)  To the extent that a term in a letter of credit is ineffective under subsection (a) of this
section but would be effective under law other than this article or a custom or practice applicable
to the letter of credit, to the transfer of a right to draw or otherwise demand performance under
the letter of credit, or to the assignment of a right to proceeds of the letter of credit, the creation,
attachment, or perfection of a security interest in the letter-of-credit right:
(1)  Is not enforceable against the applicant, issuer, nominated person, or transferee
beneficiary;
(2)  Imposes no duties or obligations on the applicant, issuer, nominated person, or
transferee beneficiary; and
(3)  Does not require the applicant, issuer, nominated person, or transferee beneficiary to
recognize the security interest, pay or render performance to the secured party, or accept
payment or other performance from the secured party.
Source: L. 2001: Entire article R&RE, p. 1377, § 1, effective July 1.
PART 5
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FILING
4-9-501.  Filing office. (a)  Except as otherwise provided in subsection (b) of this
section, if the local law of this state governs perfection of a security interest or agricultural lien,
the office in which to file a financing statement to perfect the security interest or agricultural lien
is:
(1)  The office designated for the filing or recording of a record of a mortgage on the
related real property, if:
(A)  The collateral is as-extracted collateral or timber to be cut; or
(B)  The financing statement is filed as a fixture filing and the collateral is goods that are
or are to become fixtures; or
(2)  The office of the secretary of state, in all other cases, including a case in which the
collateral is goods that are or are to become fixtures and the financing statement is not filed as a
fixture filing.
(b)  The office in which to file a financing statement to perfect a security interest in
collateral, including fixtures, of a transmitting utility is the office of the secretary of state. The
financing statement also constitutes a fixture filing as to the collateral indicated in the financing
statement which is or is to become fixtures.
(c)  The office in which to file an effective financing statement pursuant to article 9.5 of
this title is the office of the secretary of state.
Source: L. 2001: Entire article R&RE, p. 1378, § 1, effective July 1.
Editor's note - Colorado legislative change: Colorado added subsection (c).
4-9-502.  Contents of financing statement - record of mortgage as financing
statement - time of filing financing statement. (a)  Subject to subsection (b) of this section, a
financing statement is sufficient only if it:
(1)  Provides the name of the debtor;
(2)  Provides the name of the secured party or a representative of the secured party; and
(3)  Indicates the collateral covered by the financing statement.
(b)  Except as otherwise provided in section 4-9-501 (b), to be sufficient, a financing
statement that covers as-extracted collateral or timber to be cut, or which is filed as a fixture
filing and covers goods that are or are to become fixtures, must satisfy subsection (a) of this
section and also:
(1)  Indicate that it covers this type of collateral;
(2)  Indicate that it is to be filed for record in the real property records;
(3)  Provide a description of the real property to which the collateral is related sufficient
to give constructive notice of a mortgage under the law of this state if the description were
contained in a record of the mortgage of the real property; and
(4)  If the debtor does not have an interest of record in the real property, provide the
name of a record owner.
(c)  A record of a mortgage is effective, from the date of recording, as a financing
statement filed as a fixture filing or as a financing statement covering as-extracted collateral or
timber to be cut only if:
Colorado Revised Statutes 2024 Page 293 of  368 Uncertified Printout
(1)  The record indicates the goods or accounts that it covers;
(2)  The goods are or are to become fixtures related to the real property described in the
record or the collateral is related to the real property described in the record and is as-extracted
collateral or timber to be cut;
(3)  The record satisfies the requirements for a financing statement in this section other
than an indication that it is to be filed in the real property records; and
(4)  The record is duly recorded.
(d)  A financing statement may be filed before a security agreement is made or a security
interest otherwise attaches.
Source: L. 2001: Entire article R&RE, p. 1379, § 1, effective July 1.
Editor's note: This section is similar to former § 4-9-402 as it existed prior to 2001.
4-9-503.  Name of debtor and secured party. (a)  A financing statement sufficiently
provides the name of the debtor:
(1)  Except as otherwise provided in paragraph (3) of this subsection (a), if the debtor is a
registered organization or the collateral is held in a trust that is a registered organization, only if
the financing statement provides the name that is stated to be the registered organization's name
on the public organic record most recently filed with or issued or enacted by the registered
organization's jurisdiction of organization that purports to state, amend, or restate the registered
organization's name;
(2)  Subject to subsection (f) of this section, if the collateral is being administered by the
personal representative of a decedent, only if the financing statement provides, as the name of
the debtor, the name of the decedent and, in a separate part of the financing statement, indicates
that the collateral is being administered by a personal representative;
(3)  If the collateral is held in a trust that is not a registered organization, only if the
financing statement:
(A)  Provides, as the name of the debtor:
(i)  If the organic record of the trust specifies a name for the trust, the name specified; or
(ii)  If the organic record of the trust does not specify a name for the trust, the name of
the settlor or testator; and
(B)  In a separate part of the financing statement:
(i)  If the name is provided in accordance with sub-subparagraph (i) of subparagraph (A)
of this paragraph (3), indicates that the collateral is held in a trust; or
(ii)  If the name is provided in accordance with sub-subparagraph (ii) of subparagraph
(A) of this paragraph (3), provides additional information sufficient to distinguish the trust from
other trusts having one or more of the same settlors or the same testator and indicates that the
collateral is held in a trust, unless the additional information so indicates;
(4)  If the debtor is an individual, only if the financing statement:
(A)  Provides the individual name of the debtor;
(B)  Provides the surname and first personal name of the debtor; or
(C)  Subject to subsection (g) of this section, provides the name of the individual that is
indicated on a driver's license that this state has issued to the individual and that has not expired
Colorado Revised Statutes 2024 Page 294 of  368 Uncertified Printout
or an identification card issued pursuant to part 3 of article 2 of title 42, C.R.S., that has not
expired; and
(5)  In other cases:
(A)  If the debtor has a name, only if the financing statement provides the individual or
organizational name of the debtor; and
(B)  If the debtor does not have a name, only if the financing statement provides the
names of the partners, members, associates, or other persons comprising the debtor, in a manner
that each name provided would be sufficient if the person named were the debtor.
(b)  A financing statement that provides the name of the debtor in accordance with
subsection (a) of this section is not rendered ineffective by the absence of:
(1)  A trade name or other name of the debtor; or
(2)  Unless required under subparagraph (B) of paragraph (5) of subsection (a) of this
section, names of partners, members, associates, or other persons comprising the debtor.
(c)  A financing statement that provides only the debtor's trade name does not sufficiently
provide the name of the debtor.
(d)  Failure to indicate the representative capacity of a secured party or representative of
a secured party does not affect the sufficiency of a financing statement.
(e)  A financing statement may provide the name of more than one debtor and the name
of more than one secured party.
(f)  The name of the decedent indicated on the order appointing the personal
representative of the decedent issued by the court having jurisdiction over the collateral is
sufficient as the "name of the decedent" under paragraph (2) of subsection (a) of this section.
(g)  If this state has issued to an individual more than one driver's license of a kind
described in subparagraph (C) of paragraph (4) of subsection (a) of this section, the one that was
issued most recently is the one to which subparagraph (C) of paragraph (4) of subsection (a) of
this section refers.
(h)  In this section, the "name of the settlor or testator" means:
(1)  If the settlor is a registered organization, the name that is stated to be the settlor's
name on the public organic record most recently filed with or issued or enacted by the settlor's
jurisdiction of organization that purports to state, amend, or restate the settlor's name; or
(2)  In other cases, the name of the settlor or testator indicated in the trust's organic
record.
Source: L. 2001: Entire article R&RE, p. 1380, § 1, effective July 1. L. 2012: (a) and (b)
amended and (f), (g), and (h) added, (HB 12-1262), ch. 170, p. 600, § 10, effective July 1, 2013.
L. 2013: (a)(4)(C) amended, (HB 13-1284), ch. 379, p. 2222, § 1, effective July 1.
4-9-504.  Indication of collateral. A financing statement sufficiently indicates the
collateral that it covers if the financing statement provides:
(1)  A description of the collateral pursuant to section 4-9-108; or
(2)  An indication that the financing statement covers all assets or all personal property.
Source: L. 2001: Entire article R&RE, p. 1381, § 1, effective July 1.
Editor's note: This section is similar to former § 4-9-402 (1) as it existed prior to 2001.
Colorado Revised Statutes 2024 Page 295 of  368 Uncertified Printout
4-9-505.  Filing and compliance with other statutes and treaties for consignments,
leases, other bailments, and other transactions. (a)  A consignor, lessor, or other bailor of
goods, a licensor, or a buyer of a payment intangible or promissory note may file a financing
statement, or may comply with a statute or treaty described in section 4-9-311 (a), using the
terms "consignor", "consignee", "lessor", "lessee", "bailor", "bailee", "licensor", "licensee",
"owner", "registered owner", "buyer", "seller", or words of similar import, instead of the terms
"secured party" and "debtor".
(b)  This part 5 applies to the filing of a financing statement under subsection (a) of this
section and, as appropriate, to compliance that is equivalent to filing a financing statement under
section 4-9-311 (b), but the filing or compliance is not of itself a factor in determining whether
the collateral secures an obligation. If it is determined for another reason that the collateral
secures an obligation, a security interest held by the consignor, lessor, bailor, licensor, owner, or
buyer which attaches to the collateral is perfected by the filing or compliance.
Source: L. 2001: Entire article R&RE, p. 1381, § 1, effective July 1.
Editor's note: This section is similar to former § 4-9-408 as it existed prior to 2001.
4-9-506.  Effect of errors or omissions. (a)  A financing statement substantially
satisfying the requirements of this part 5 is effective, even if it has minor errors or omissions,
unless the errors or omissions make the financing statement seriously misleading.
(b)  Except as otherwise provided in subsection (c) of this section, a financing statement
that fails sufficiently to provide the name of the debtor in accordance with section 4-9-503 (a) is
seriously misleading.
(c)  If a search of the records of the filing office under the debtor's correct name, using
the filing office's standard search logic, if any, would disclose a financing statement that fails
sufficiently to provide the name of the debtor in accordance with section 4-9-503 (a), the name
provided does not make the financing statement seriously misleading.
(d)  For purposes of section 4-9-508 (b), the "debtor's correct name" in subsection (c) of
this section means the correct name of the new debtor.
Source: L. 2001: Entire article R&RE, p. 1381, § 1, effective July 1.
Editor's note: This section is similar to former § 4-9-402 (8) as it existed prior to 2001.
4-9-507.  Effect of certain events on effectiveness of financing statement. (a)  A filed
financing statement remains effective with respect to collateral that is sold, exchanged, leased,
licensed, or otherwise disposed of and in which a security interest or agricultural lien continues,
even if the secured party knows of or consents to the disposition.
(b)  Except as otherwise provided in subsection (c) of this section and section 4-9-508, a
financing statement is not rendered ineffective if, after the financing statement is filed, the
information provided in the financing statement becomes seriously misleading under section 4-9-
506.
Colorado Revised Statutes 2024 Page 296 of  368 Uncertified Printout
(c)  If the name that a filed financing statement provides for a debtor becomes
insufficient as the name of the debtor under section 4-9-503 (a) so that the financing statement
becomes seriously misleading under section 4-9-506:
(1)  The financing statement is effective to perfect a security interest in collateral
acquired by the debtor before, or within four months after, the filed financing statement becomes
seriously misleading; and
(2)  The financing statement is not effective to perfect a security interest in collateral
acquired by the debtor more than four months after the filed financing statement becomes
seriously misleading, unless an amendment to the financing statement that renders the financing
statement not seriously misleading is filed within four months after the filed financing statement
becomes seriously misleading.
Source: L. 2001: Entire article R&RE, p. 1382, § 1, effective July 1. L. 2012: (c)
amended, (HB 12-1262), ch. 170, p. 602, § 11, effective July 1, 2013.
Editor's note: This section is similar to former § 4-9-402 (7) as it existed prior to 2001.
4-9-508.  Effectiveness of financing statement if new debtor becomes bound by
security agreement. (a)  Except as otherwise provided in this section, a filed financing
statement naming an original debtor is effective to perfect a security interest in collateral in
which a new debtor has or acquires rights to the extent that the financing statement would have
been effective had the original debtor acquired rights in the collateral.
(b)  If the difference between the name of the original debtor and that of the new debtor
causes a filed financing statement that is effective under subsection (a) of this section to be
seriously misleading under section 4-9-506:
(1)  The financing statement is effective to perfect a security interest in collateral
acquired by the new debtor before, and within four months after, the new debtor becomes bound
under section 4-9-203 (d); and
(2)  The financing statement is not effective to perfect a security interest in collateral
acquired by the new debtor more than four months after the new debtor becomes bound under
section 4-9-203 (d) unless an initial financing statement providing the name of the new debtor is
filed before the expiration of that time.
(c)  This section does not apply to collateral as to which a filed financing statement
remains effective against the new debtor under section 4-9-507 (a).
Source: L. 2001: Entire article R&RE, p. 1382, § 1, effective July 1.
4-9-509.  Persons entitled to file a record. (a)  A person may file an initial financing
statement, amendment that adds collateral covered by a financing statement, or amendment that
adds a debtor to a financing statement only if:
(1)  The debtor authorizes the filing in a signed record or pursuant to subsection (b) or (c)
of this section; or
(2)  The person holds an agricultural lien that has become effective at the time of filing
and the financing statement covers only collateral in which the person holds an agricultural lien.
Colorado Revised Statutes 2024 Page 297 of  368 Uncertified Printout
(b)  By signing or becoming bound as debtor by a security agreement, a debtor or new
debtor authorizes the filing of an initial financing statement, and an amendment, covering:
(1)  The collateral described in the security agreement; and
(2)  Property that becomes collateral under section 4-9-315 (a)(2), whether or not the
security agreement expressly covers proceeds.
(c)  By acquiring collateral in which a security interest or agricultural lien continues
under section 4-9-315 (a)(1), a debtor authorizes the filing of an initial financing statement, and
an amendment, covering the collateral and property that becomes collateral under section 4-9-
315 (a)(2).
(d)  A person may file an amendment other than an amendment that adds collateral
covered by a financing statement or an amendment that adds a debtor to a financing statement
only if:
(1)  The secured party of record authorizes the filing; or
(2)  The amendment is a termination statement for a financing statement as to which the
secured party of record has failed to file or send a termination statement as required by section 4-
9-513 (a) or (c), the debtor authorizes the filing, and the termination statement indicates that the
debtor authorized it to be filed.
(e)  If there is more than one secured party of record for a financing statement, each
secured party of record may authorize the filing of an amendment under subsection (d) of this
section.
Source: L. 2001: Entire article R&RE, p. 1383, § 1, effective July 1. L. 2023: (a)(1) and
IP(b) amended, (SB 23-090), ch. 136, p. 559, § 74, effective August 7.
Editor's note - Colorado legislative change: Colorado added the phrase "or pursuant to
subsection (b) or (c) of this section" to subsection (a)(1).
4-9-510.  Effectiveness of filed record. (a)  A filed record is effective only to the extent
that it was filed by a person that may file it under section 4-9-509.
(b)  A record authorized by one secured party of record does not affect the financing
statement with respect to another secured party of record.
(c)  Subject to section 4-9-528 and subsection (d) of this section, a continuation statement
that is not filed within the six-month period prescribed by section 4-9-515 (d) is ineffective.
(d)  Any continuation statement filed on or after July 1, 1996, and before January 1,
1998, including one that was perfected by filing with both the offices of the secretary of state
and a county clerk and recorder, continues the perfection in all of the collateral listed on the
filing. With respect to continuation statements filed on or after July 1, 1996, and before January
1, 1998, the filing of a single continuation statement shall maintain the effectiveness of financing
statements that name identical collateral but have been filed in multiple locations.
(e)  No continuation statement filed on or after July 1, 1995, shall be ineffective solely
because it failed to include a statement that the original financing statement is still effective.
Source: L. 2001: Entire article R&RE, p. 1383, § 1, effective July 1.
Colorado Revised Statutes 2024 Page 298 of  368 Uncertified Printout
Editor's note - Colorado legislative change: Colorado added the phrase "Subject to
section 4-9-528 and subsection (d) of this section," to subsection (c) and added subsections (d)
and (e).
4-9-511.  Secured party of record. (a)  A secured party of record with respect to a
financing statement is a person whose name is provided as the name of the secured party or a
representative of the secured party in an initial financing statement that has been filed. If an
initial financing statement is filed under section 4-9-514 (a), the assignee named in the initial
financing statement is the secured party of record with respect to the financing statement.
(b)  If an amendment of a financing statement which provides the name of a person as a
secured party or a representative of a secured party is filed, the person named in the amendment
is a secured party of record. If an amendment is filed under section 4-9-514 (b), the assignee
named in the amendment is a secured party of record.
(c)  A person remains a secured party of record until the filing of an amendment of the
financing statement which deletes the person.
Source: L. 2001: Entire article R&RE, p. 1384, § 1, effective July 1.
4-9-512.  Amendment of financing statement. (a)  Subject to section 4-9-509, a person
may add or delete collateral covered by, continue or terminate the effectiveness of, or, subject to
subsection (e) of this section, otherwise amend the information provided in, a financing
statement by filing an amendment that:
(1)  Identifies, by file number, the initial financing statement to which the amendment
relates; and
(2)  Provides the date that the initial financing statement was filed or recorded.
(b)  Except as otherwise provided in section 4-9-515, the filing of an amendment does not
extend the period of effectiveness of the financing statement.
(c)  A financing statement that is amended by an amendment that adds collateral is
effective as to the added collateral only from the date of the filing of the amendment.
(d)  A financing statement that is amended by an amendment that adds a debtor is
effective as to the added debtor only from the date of the filing of the amendment.
(e)  An amendment is ineffective to the extent it:
(1)  Purports to delete all debtors and fails to provide the name of a debtor to be covered
by the financing statement; or
(2)  Purports to delete all secured parties of record and fails to provide the name of a new
secured party of record.
Source: L. 2001: Entire article R&RE, p. 1384, § 1, effective July 1.
Editor's note: (1)  This section is similar to former § 4-9-402 (4) as it existed prior to
2001.
(2)  Colorado legislative change: Subsection (a)(2) of the uniform act states: "if the
amendment relates to an initial financing statement filed [or recorded] in a filing office described
in Section 9-501(a)(1), provides the date and time that the initial financing statement was filed or
recorded and the information specified in Section 9-502 (b)."
Colorado Revised Statutes 2024 Page 299 of  368 Uncertified Printout
4-9-513.  Termination statement. (a)  A secured party shall cause the secured party of
record for a financing statement to file a termination statement for the financing statement if the
financing statement covers consumer goods and:
(1)  There is no obligation secured by the collateral covered by the financing statement
and no commitment to make an advance, incur an obligation, or otherwise give value; or
(2)  The debtor did not authorize the filing of the initial financing statement.
(b)  To comply with subsection (a) of this section, a secured party shall cause the secured
party of record to file the termination statement:
(1)  Within one month after there is no obligation secured by the collateral covered by the
financing statement and no commitment to make an advance, incur an obligation, or otherwise
give value; or
(2)  If earlier, within twenty days after the secured party receives a signed demand from a
debtor.
(c)  In cases not governed by subsection (a) of this section, within twenty days after a
secured party receives a signed demand from a debtor, the secured party shall cause the secured
party of record for a financing statement to send to the debtor a termination statement for the
financing statement or file the termination statement in the filing office if:
(1)  Except in the case of a financing statement covering accounts or chattel paper that
has been sold or goods that are the subject of a consignment, there is no obligation secured by
the collateral covered by the financing statement and no commitment to make an advance, incur
an obligation, or otherwise give value;
(2)  The financing statement covers accounts or chattel paper that has been sold but as to
which the account debtor or other person obligated has discharged its obligation;
(3)  The financing statement covers goods that were the subject of a consignment to the
debtor but are not in the debtor's possession; or
(4)  The debtor did not authorize the filing of the initial financing statement.
(d)  Except as otherwise provided in section 4-9-510, upon the filing of a termination
statement with the filing office, the financing statement to which the termination statement
relates ceases to be effective. Except as otherwise provided in section 4-9-510, for purposes of
sections 4-9-519 (g), 4-9-522 (a), and 4-9-523 (c), the filing with the filing office of a
termination statement relating to a financing statement that indicates that the debtor is a
transmitting utility also causes the effectiveness of the financing statement to lapse.
Source: L. 2001: Entire article R&RE, p. 1385, § 1, effective July 1. L. 2023: (b)(2) and
IP(c) amended, (SB 23-090), ch. 136, p. 559, § 75, effective August 7.
Editor's note: (1)  This section is similar to former § 4-9-404 as it existed prior to 2001.
(2)  Colorado legislative change: Colorado added the last sentence of subsection (d).
4-9-514.  Assignment of powers of secured party of record. (a)  Except as otherwise
provided in subsection (c) of this section, an initial financing statement may reflect an
assignment of all of the secured party's power to authorize an amendment to the financing
statement by providing the name and mailing address of the assignee as the name and address of
the secured party.
Colorado Revised Statutes 2024 Page 300 of  368 Uncertified Printout
(b)  Except as otherwise provided in subsection (c) of this section, a secured party of
record may assign of record all or part of its power to authorize an amendment to a financing
statement by filing in the filing office an amendment of the financing statement that:
(1)  Identifies, by its file number, the initial financing statement to which it relates;
(1.5)  Provides the date that the initial financing statement was filed or recorded;
(2)  Provides the name of the assignor; and
(3)  Provides the name and mailing address of the assignee.
(c)  An assignment of record of a security interest in a fixture covered by a record of a
mortgage which is effective as a financing statement filed as a fixture filing under section 4-9-
502 (c) may be made only by an assignment of record of the mortgage in the manner provided by
law of this state other than this title.
(d)  An assignment that was filed in accordance with this section prior to August 5, 2009,
and that is on file in the filing office as of August 5, 2009, whether or not it provides the date
that the initial financing statement was filed or recorded, shall be deemed to have been filed
pursuant to and in accordance with this section as amended and shall have the same effect as if
filed pursuant to this section as amended.
Source: L. 2001: Entire article R&RE, p. 1386, § 1, effective July 1. L. 2009: IP(b) and
(b)(2) amended and (b)(1.5) and (d) added, (SB 09-084), ch. 141, p. 602, §§ 1, 2, effective
August 5.
Editor's note: (1)  This section is similar to former § 4-9-405 as it existed prior to 2001.
(2)  Colorado legislative change: Colorado added the phrase "and the name of one of
the debtors" to subsection (b)(2).
4-9-515.  Duration and effectiveness of financing statement - effect of lapsed
financing statement. (a)  Except as otherwise provided in subsections (b), (e), (f), and (g) of this
section and section 4-9-528, a filed financing statement is effective for a period of five years
after the date of filing.
(b)  Except as otherwise provided in subsections (e), (f), and (g) of this section, an initial
financing statement filed in connection with a manufactured-home transaction is effective for a
period of thirty years after the date of filing if it indicates that it is filed in connection with a
manufactured-home transaction.
(c)  The effectiveness of a filed financing statement lapses on the expiration of the period
of its effectiveness unless before the lapse a continuation statement is filed pursuant to
subsection (d) of this section. Upon lapse, a financing statement ceases to be effective and any
security interest or agricultural lien that was perfected by the financing statement becomes
unperfected, unless the security interest is perfected otherwise. If the security interest or
agricultural lien becomes unperfected upon lapse, it is deemed never to have been perfected as
against a purchaser of the collateral for value.
(d)  A continuation statement may be filed only within six months before the expiration
of the five-year period specified in subsection (a) of this section, the thirty-year period specified
in subsection (b) of this section, or the five-year period specified in section 4-9-528 (a)(1),
whichever is applicable.
Colorado Revised Statutes 2024 Page 301 of  368 Uncertified Printout
(e)  Except as otherwise provided in section 4-9-510, upon timely filing of a continuation
statement, the effectiveness of the initial financing statement continues for a period of five years
commencing on the day on which the financing statement would have become ineffective in the
absence of the filing. Upon the expiration of the five-year period, the financing statement lapses
in the same manner as provided in subsection (c) of this section, unless, before the lapse, another
continuation statement is filed pursuant to subsection (d) of this section. Succeeding continuation
statements may be filed in the same manner to continue the effectiveness of the initial financing
statement.
(f)  If a debtor is a transmitting utility and a filed initial financing statement so indicates,
the financing statement is effective until a termination statement is filed.
(g)  A record of a mortgage that is effective as a financing statement filed as a fixture
filing under section 4-9-502 (c) remains effective as a financing statement filed as a fixture filing
until the mortgage is released or satisfied of record or its effectiveness otherwise terminates as to
the real property.
Source: L. 2001: Entire article R&RE, p. 1386, § 1, effective July 1. L. 2012: (f)
amended, (HB 12-1262), ch. 170, p. 602, § 12, effective July 1, 2013.
Editor's note: (1)  This section is similar to former § 4-9-403 as it existed prior to 2001.
(2)  Colorado legislative change: Colorado added the reference to section 4-9-528 in
subsection (a) and the phrase "or the five-year period specified in section 4-9-528 (a)(1)" in
subsection (d).
4-9-516.  What constitutes filing - effectiveness of filing. (a)  Except as otherwise
provided in subsection (b) of this section, communication of a record to a filing office and tender
of the filing fee or acceptance of the record by the filing office constitutes filing.
(b)  Filing does not occur with respect to a record that a filing office refuses to accept
because:
(1)  The record is not communicated by a method or medium of communication
authorized by the filing office;
(2)  An amount equal to or greater than the applicable filing fee is not tendered;
(3)  The filing office is unable to index the record because:
(A)  In the case of an initial financing statement, the record does not provide a name for
the debtor;
(B)  In the case of an amendment or information statement, the record:
(i)  Does not identify the initial financing statement as required by section 4-9-512 or 4-
9-518, as applicable; or
(ii)  Identifies an initial financing statement whose effectiveness has lapsed under section
4-9-515;
(C)  In the case of an initial financing statement that provides the name of a debtor
identified as an individual or an amendment that provides a name of a debtor identified as an
individual that was not previously provided in the financing statement to which the record
relates, the record does not identify the debtor's surname; or
Colorado Revised Statutes 2024 Page 302 of  368 Uncertified Printout
(D)  In the case of a record filed or recorded in the filing office described in section 4-9-
501 (a)(1), the record does not provide a sufficient description of the real property to which it
relates;
(4)  In the case of an initial financing statement or an amendment that adds a secured
party of record, the record does not provide a name and mailing address for the secured party of
record;
(5)  In the case of an initial financing statement or an amendment that provides a name of
a debtor that was not previously provided in the financing statement to which the amendment
relates, the record does not:
(A)  Provide a mailing address for the debtor; or
(B)  Indicate whether the debtor is an individual or an organization.
(C)  Repealed.
(6)  In the case of an assignment reflected in an initial financing statement under section
4-9-514 (a) or an amendment filed under section 4-9-514 (b), the record does not provide a name
and mailing address for the assignee; or
(7)  In the case of a continuation statement, the record is not filed within the six-month
period prescribed by section 4-9-515 (d).
(c)  For purposes of subsection (b) of this section:
(1)  A record does not provide information if the filing office is unable to read or
decipher the information; and
(2)  A record that does not indicate that it is an amendment or identify an initial financing
statement to which it relates, as required by section 4-9-512, 4-9-514, or 4-9-518, is an initial
financing statement.
(d)  A record that is communicated to the filing office with tender of the filing fee, but
which the filing office refuses to accept for a reason other than one set forth in subsection (b) of
this section, is effective as a filed record except as against a purchaser of the collateral which
gives value in reasonable reliance upon the absence of the record from the files.
Source: L. 2001: Entire article R&RE, p. 1387, § 1, effective July 1. L. 2012:
IP(b)(3)(B), (b)(3)(C), IP(b)(5), (b)(5)(A), and (b)(5)(B) amended and (b)(5)(C) repealed, (HB
12-1262), ch. 170, p. 602, § 13, effective July 1, 2013.
4-9-517.  Effect of indexing errors. The failure of the filing office to index a record
correctly does not affect the effectiveness of the filed record.
Source: L. 2001: Entire article R&RE, p. 1389, § 1, effective July 1.
4-9-518.  Claim concerning inaccurate or wrongfully filed record. (a) (1)  Any person
named as a debtor may file in the filing office an information statement with respect to a record
indexed there under the debtor's name if the person believes that the record is inaccurate or was
wrongfully filed.
(2) and (3)  Repealed.
(b)  An information statement under subsection (a) of this section must:
(1)  Identify the record to which it relates by:
Colorado Revised Statutes 2024 Page 303 of  368 Uncertified Printout
(A)  The file number assigned to the initial financing statement to which the record
relates; and
(B)  If the information statement relates to a record filed or recorded in a filing office
described in section 4-9-501 (a)(1), the date that the initial financing statement was filed or
recorded;
(2)  Indicate that it is an information statement; and
(3)  Provide the basis for the person's belief that the record is inaccurate and indicate the
manner in which the person believes the record should be amended to cure any inaccuracy or
provide the basis for the person's belief that the record was wrongfully filed.
(c)  A person may file in the filing office an information statement with respect to a
record filed there if the person is a secured party of record with respect to the financing
statement to which the record relates and believes that the person that filed the record was not
entitled to do so under section 4-9-509 (d).
(d)  An information statement under subsection (c) of this section must:
(1)  Identify the record to which it relates by:
(A)  The file number assigned to the initial financing statement to which the record
relates; and
(B)  If the information statement relates to a record filed or recorded in a filing office
described in section 4-9-501 (a)(1), the date that the initial financing statement was filed or
recorded;
(2)  Indicate that it is an information statement; and
(3)  Provide the basis for the person's belief that the person that filed the record was not
entitled to do so under section 4-9-509 (d).
(e)  The filing of an information statement does not affect the effectiveness of an initial
financing statement or other filed record.
(f)  Repealed.
Source: L. 2001: Entire article R&RE, p. 1389, § 1, effective July 1. L. 2008: (a)
amended and (d) added, p. 266, § 1, effective August 5. L. 2010: (a)(2) amended, (HB 10-1422),
ch. 419, p. 2063, § 6, effective August 11. L. 2012: Entire section amended, (HB 12-1262), ch.
170, p. 603, § 14, effective July 1, 2013. L. 2013: (a)(2), (a)(3), and (f) repealed, (HB 13-1284),
ch. 379, p. 2222, § 2, effective July 1.
4-9-519.  Numbering, maintaining, and indexing records - communicating
information provided in records. (a)  For each record filed in a filing office, the filing office
shall:
(1)  Assign a unique number to the filed record;
(2)  Create a record that bears the number assigned to the filed record and the date and
time of filing;
(3)  Maintain the filed record for public inspection; and
(4)  Index the filed record in accordance with subsections (c), (d), and (e) of this section.
(b)  Repealed.
(c)  Except as otherwise provided in subsections (d) and (e) of this section, the filing
office shall:
Colorado Revised Statutes 2024 Page 304 of  368 Uncertified Printout
(1)  Index an initial financing statement according to the name of the debtor and index all
filed records relating to the initial financing statement in a manner that associates with one
another an initial financing statement and all filed records relating to the initial financing
statement; and
(2)  Index a record that provides a name of a debtor which was not previously provided in
the financing statement to which the record relates also according to the name that was not
previously provided.
(d)  If a financing statement is filed as a fixture filing or covers as-extracted collateral or
timber to be cut, it must be filed for record and the filing office shall index it:
(1)  Under the names of the debtor and of each owner of record shown on the financing
statement as if they were the mortgagors under a mortgage of the real property described; and
(2)  To the extent that the law of this state provides for indexing of records of mortgages
under the name of the mortgagee, under the name of the secured party as if the secured party
were the mortgagee thereunder, or, if indexing is by description, as if the financing statement
were a record of a mortgage of the real property described.
(e)  If a financing statement is filed as a fixture filing or covers as-extracted collateral or
timber to be cut, the filing office shall index an assignment filed under section 4-9-514 (a) or an
amendment filed under section 4-9-514 (b):
(1)  Under the name of the assignor as grantor; and
(2)  To the extent that the law of this state provides for indexing a record of the
assignment of a mortgage under the name of the assignee, under the name of the assignee.
(f)  The filing office shall maintain a capability:
(1)  To retrieve a record by the name of the debtor and:
(A)  If the filing office is described in section 4-9-501 (a)(1), by the file number assigned
to the initial financing statement to which the record relates and the date that the record was filed
or recorded; or
(B)  If the filing office is described in section 4-9-501 (a)(2), by the file number assigned
to the initial financing statement to which the record relates; and
(2)  To associate and retrieve with one another an initial financing statement and each
filed record relating to the initial financing statement.
(g)  The filing office may not remove a debtor's name from the index until one year after
the effectiveness of a financing statement naming the debtor lapses under section 4-9-515 with
respect to all secured parties of record.
(h)  The filing office shall perform the acts required by subsections (a) to (e) of this
section at the time and in the manner prescribed by filing-office rule, but not later than five
business days after the filing office receives the record in question.
Source: L. 2001: Entire article R&RE, p. 1389, § 1, effective July 1. L. 2009: (b)
repealed, (SB 09-084), ch. 141, p. 603, § 3, effective August 5.
Editor's note: (1)  This section is similar to former § 4-9-403 as it existed prior to 2001.
(2)  Colorado legislative change: Colorado did not adopt subsection (i).
Colorado Revised Statutes 2024 Page 305 of  368 Uncertified Printout
4-9-520.  Acceptance and refusal to accept record. (a)  A filing office shall refuse to
accept a record for filing for a reason set forth in section 4-9-516 (b) and may refuse to accept a
record for filing only for a reason set forth in section 4-9-516 (b).
(b)  If a filing office refuses to accept a record for filing, it shall communicate to the
person that presented the record the fact of and reason for the refusal and the date and time the
record would have been filed had the filing office accepted it. The communication must be made
at the time and in the manner prescribed by filing-office rule but in no event more than five
business days after the filing office receives the record.
(c)  A filed financing statement satisfying section 4-9-502 (a) and (b) is effective, even if
the filing office is required to refuse to accept it for filing under subsection (a) of this section.
However, section 4-9-338 applies to a filed financing statement providing information described
in section 4-9-516 (b)(5) which is incorrect at the time the financing statement is filed.
(d)  If a record communicated to a filing office provides information that relates to more
than one debtor, this part 5 applies as to each debtor separately.
Source: L. 2001: Entire article R&RE, p. 1391, § 1, effective July 1.
Editor's note - Colorado legislative change: In subsection (b), Colorado did not adopt
the phrase "in the case of a filing office described in section 4-9-501(a)(2)," after the word "but"
and changed "two" to "five".
4-9-521.  Uniform form of written financing statement and amendment. (a)  A filing
office that accepts written records may not refuse to accept a written initial financing statement
in the form and format adopted from time to time by the secretary of state, except for a reason
set forth in section 4-9-516 (b).
(b)  A filing office that accepts written records may not refuse to accept a written record
in the form and format adopted from time to time by the secretary of state, except for a reason
set forth in section 4-9-516 (b).
Source: L. 2001: Entire article R&RE, p. 1392, § 1, effective July 1.
Editor's note - Colorado legislative change: Colorado substituted the phrase "form and
format adopted from time to time by the secretary of state," for the phrase "following form and
format" in subsections (a) and (b).
4-9-522.  Maintenance and destruction of records. (a)  The filing office shall maintain
a record of the information provided in a filed financing statement for at least one year after the
effectiveness of the financing statement has lapsed under section 4-9-515 with respect to all
secured parties of record. The record must be retrievable by using the name of the debtor and the
file number assigned to the initial financing statement to which the record relates and the date
that the record was filed or recorded.
(b)  Except to the extent that a statute governing disposition of public records provides
otherwise, the filing office immediately may destroy any written record evidencing a financing
statement. However, if the filing office destroys a written record, it shall maintain another record
of the financing statement which complies with subsection (a) of this section.
Colorado Revised Statutes 2024 Page 306 of  368 Uncertified Printout
Source: L. 2001: Entire article R&RE, p. 1392, § 1, effective July 1.
Editor's note: (1)  This section is similar to former § 4-9-403 (3) as it existed prior to
2001.
(2)  Colorado legislative change: Colorado did not adopt the phrase "by using" after the
phrase "debtor and" and added the phrase "and the date that the record was filed or recorded" in
subsection (a).
4-9-523.  Information from filing office - sale or license of records. (a)  If a person
that files a written record requests an acknowledgment of the filing, the filing office shall send to
the person an image of the record showing the number assigned to the record pursuant to section
4-9-519 (a)(1), the name of the debtor and the date and time of the filing of the record. However,
if the person furnishes a copy of the record to the filing office, the filing office may instead:
(1)  Note upon the copy the number assigned to the record pursuant to section 4-9-519
(a)(1) and the date and time of the filing of the record; and
(2)  Send the copy to the person.
(b)  If a person files a record other than a written record, the filing office shall
communicate to the person an acknowledgment that provides:
(1)  The information in the record;
(2)  The number assigned to the record pursuant to section 4-9-519 (a)(1); and
(3)  The date and time of the filing of the record.
(c)  The filing office shall communicate or otherwise make available in a record the
following information to any person that requests it:
(1)  Whether there is on file on a date and time specified by the filing office, but not a
date earlier than three business days before the filing office receives the request, any financing
statement that:
(A)  Designates a particular debtor;
(B)  Has not lapsed under section 4-9-515 with respect to all secured parties of record;
and
(C)  If the request so states, has lapsed under section 4-9-515 and a record of which is
maintained by the filing office under section 4-9-522 (a);
(2)  The date and time of filing of each financing statement; and
(3)  The information provided in each financing statement.
(d)  In complying with its duty under subsection (c) of this section, the filing office may
communicate information in any medium. However, if requested, the filing office shall
communicate information by issuing a record that can be admitted into evidence in the courts of
this state without extrinsic evidence of its authenticity.
(e)  The filing office shall perform the acts required by subsections (a) to (d) of this
section at the time and in the manner prescribed by filing-office rule, but not later than five
business days after the filing office receives the request.
(f)  At least weekly, the filing office shall offer to sell or license to the public on a
nonexclusive basis, in bulk, copies of all records filed in it under this part 5, in such digital or
electronic medium as is from time to time available to the filing office.
Colorado Revised Statutes 2024 Page 307 of  368 Uncertified Printout
Source: L. 2001: Entire article R&RE, p. 1392, § 1, effective July 1. L. 2008: (c)
amended, p. 266, § 2, effective August 5. L. 2009: (d) amended, (SB 09-084), ch. 141, p. 603, §
4, effective August 5.
Editor's note: (1)  This section is similar to former § 4-9-407 as it existed prior to 2001.
(2)  Colorado legislative change: Colorado added the phrase "the name of the debtor
and" in subsection (a), added a reference to "federal tax lien notice" in subsections (c)(1), (c)(2),
and (c)(3), changed "two" to "five" in subsection (e), and substituted the phrase "such digital or
electronic medium as is" for the phrase "every medium" in subsection (f).
4-9-524.  Delay by filing office. Delay by the filing office beyond a time limit prescribed
by this part 5 is excused if:
(1)  The delay is caused by interruption of communication or computer facilities, war,
emergency conditions, failure of equipment, or other circumstances beyond control of the filing
office; and
(2)  The filing office exercises reasonable diligence under the circumstances.
Source: L. 2001: Entire article R&RE, p. 1393, § 1, effective July 1.
4-9-525.  Fees. (a)  Except as otherwise provided in subsection (f) of this section and
subject to section 24-75-402, C.R.S., fees for services rendered by the secretary of state under
this part 5 shall be determined and collected pursuant to section 24-21-104, C.R.S.
(b)  Except as otherwise provided in subsection (f) of this section, the fee for filing and
indexing a record under this part 5 in a filing office described in section 4-9-501 (a)(1) shall not
exceed:
(1)  Ten dollars if the record is communicated in writing and consists of one or two
pages;
(2)  Fifteen dollars if the record is communicated in writing and consists of more than
two pages; and
(3)  Five dollars if the record is communicated by another medium authorized by filing-
office rule.
(c)  The number of names required to be indexed does not affect the amount of the fee in
subsections (a) and (b) of this section.
(d)  The secretary of state must set the fee for responding to a request for information
from the secretary of state, including the fee for issuing a certificate showing whether there is on
file any financing statement naming a particular debtor. The secretary of state need not set a fee
for remote access to the secretary of state's data base.
(e)  The fee for responding to a request for information from a filing office described in
section 4-9-501 (a)(1), including for issuing a certificate showing whether there is on file any
financing statement naming a particular debtor, shall not exceed:
(1)  Five dollars if the request is communicated in writing; and
(2)  Three dollars if the request is communicated by another medium authorized by
filing-office rule.
(f)  This section does not require a fee with respect to a record of a mortgage which is
effective as a financing statement filed as a fixture filing or as a financing statement covering as-
Colorado Revised Statutes 2024 Page 308 of  368 Uncertified Printout
extracted collateral or timber to be cut under section 4-9-502 (c). However, the recording and
satisfaction fees that otherwise would be applicable to the record of the mortgage apply.
Source: L. 2001: Entire article R&RE, p. 1393, § 1, effective July 1. L. 2008: (a)
amended, p. 267, § 3, effective August 5.
Editor's note - Colorado legislative change: This section contains numerous alterations
from the uniform act.
4-9-526.  Filing-office rules. (a)  The secretary of state shall adopt and publish rules to
implement this article. The filing-office rules must be:
(1)  Consistent with this article; and
(2)  Adopted and published in accordance with the "State Administrative Procedure Act",
article 4 of title 24, C.R.S.
(b)  To keep the filing-office rules and practices of the filing office in harmony with the
rules and practices of filing offices in other jurisdictions that enact substantially this part 5, and
to keep the technology used by the filing office compatible with the technology used by filing
offices in other jurisdictions that enact substantially this part 5, the secretary of state, so far as is
consistent with the purposes, policies, and provisions of this article, in adopting, amending, and
repealing filing-office rules, shall:
(1)  Consult with filing offices in other jurisdictions that enact substantially this part 5;
and
(2)  Consult the most recent version of the model rules promulgated by the international
association of commercial administrators or any successor organization; and
(3)  Take into consideration the rules and practices of, and the technology used by, filing
offices in other jurisdictions that enact substantially this part 5.
Source: L. 2001: Entire article R&RE, p. 1394, § 1, effective July 1. L. 2008: (b)(2)
amended, p. 267, § 4, effective August 5.
4-9-527.  Duty to report. (Repealed)
Source: L. 2001: Entire article R&RE, p. 1395, § 1, effective July 1. L. 2008: (2)
amended, p. 267, § 5, effective August 5. L. 2017: Entire section repealed, (HB 17-1133), ch.
75, p. 236, § 1, effective March 23.
4-9-528.  Refiling required. (a) (1)  The effectiveness of a financing statement that was
filed before July 1, 1996, and that has not otherwise lapsed by December 31, 1997, shall lapse in
the manner provided in section 4-9-403 (2) of former article 9 of this title on December 31,
1997, unless a continuation statement was filed on or after July 1, 1996, but on or before
December 31, 1997, that identified the original statement by filing office, file number, and date
of filing and contains a statement indicating the types or describing the items of collateral
indicated in the financing statement. If a continuation statement was filed in accordance with this
paragraph (1), the effectiveness of the original financing statement is continued for five years
after the last date to which the filing would otherwise have been effective, whereupon it lapses in
Colorado Revised Statutes 2024 Page 309 of  368 Uncertified Printout
the manner provided in section 4-9-515 unless another continuation statement is filed pursuant to
section 4-9-515 prior to such lapse.
(2)  No continuation statement filed pursuant to this subsection (a) on or after July 1,
1996, shall be ineffective solely because it:
(A)  Failed to identify the original statement by county, if the filing office was the office
of the secretary of state and the statement so stated, or by time of filing;
(B)  Indicated the types or described the items of the collateral indicated in the financing
statement instead of listing the collateral of the original filing; or
(C)  Failed to include a statement that the original financing statement is still effective.
(b)  For purposes of the refiling provisions of this section only, a continuation statement
does not have to be filed during the period beginning July 1, 1996, to December 31, 1997, when
the only collateral on a financing statement is timber to be cut; minerals or other substances of
value which may be extracted from the earth; fixtures; a mortgage or deed of trust effective as a
fixture filing; collateral, including fixtures, of a transmitting utility; or accounts subject to
section 4-9-103 (5) of former article 9 of this title.
(c)  References in this section to "former article 9 of this title" are to article 9 of this title
as in effect immediately before July 1, 2001.
Source: L. 2001: Entire article R&RE, p. 1395, § 1, effective July 1.
Editor's note - Colorado legislative change: Colorado added this section.
4-9-529.  Electronic and other filings. (a)  (Deleted by amendment, L. 2008, p. 268, §
6.)
(b)  The secretary of state shall ensure that presentation for filing may be accomplished
electronically, without the necessity for the presentation of a physical original document or the
image thereof, if all required information is included and readily retrievable from the data
transmitted. All electronic filings shall be retained in a form that facilitates location of the
information so filed and production of a true and accurate physical printout or other
representation of the information so filed.
(c)  The secretary of state is hereby specifically authorized to establish prepaid accounts,
an electronic debit system, a system for the acceptance of credit cards or electronic funds
transfers, or any combination thereof.
(d)  To facilitate the filing of documents in the office of the secretary of state
electronically, the secretary of state is hereby specifically authorized to adopt, by rule, technical
standards governing such filings and to reject documents that do not comply with such standards.
Such standards may include, without limitation, the specification of commercially available
software or the dissemination of software compatible with the secretary of state's reception,
storage, and retrieval system. Where national standards are available and have been promulgated
by a recognized professional organization, the secretary of state shall consider and may use such
national standards as the basis for the rules.
(e)  (Deleted by amendment, L. 2008, p. 268, § 6.)
Source: L. 2001: Entire article R&RE, p. 1396, § 1, effective July 1. L. 2008: (a), (d),
and (e) amended, p. 268, § 6, effective February 29, 2012.
Colorado Revised Statutes 2024 Page 310 of  368 Uncertified Printout
Editor's note - Colorado legislative change: Colorado added this section.
4-9-530.  Proper office to file certain amendments. (Repealed)
Source: L. 2001: Entire article R&RE, p. 1397, § 1, effective July 1. L. 2002: Entire
section repealed, p. 938, § 7, effective August 7.
Editor's note - Colorado legislative change: Colorado added this section.
4-9-531.  Removal of social security numbers from financing statements in the
custody of the secretary of state. (a)  As soon as feasible, but no later than July 1, 2003, the
secretary of state shall remove social security numbers from the publicly accessible electronic
records of all financing statements in the custody of the secretary that were filed with a filing
office on or after April 6, 1989, and before July 1, 2001, pursuant to repealed provisions of this
article that required that any such financing statement contain a social security number.
(b)  A financing statement from which the secretary of state removes a social security
number pursuant to subsection (a) of this section shall not be rendered insufficient or ineffective
by such removal.
(c)  Repealed.
Source: L. 2002: Entire section added, p. 661, § 1, effective May 28. L. 2009: (c)
repealed, (SB 09-283), ch. 336, p. 1779, § 2, effective June 1.
Editor's note: Section 3 of chapter 336, Session Laws of Colorado 2009, provides that
the act repealing subsection (c) applies to any secured transaction record in the possession of the
secretary of state before, on, or after June 1, 2009.
PART 6
DEFAULT
4-9-601.  Rights after default - judicial enforcement - consignor or buyer of
accounts, chattel paper, payment intangibles, or promissory notes. (a)  After default, a
secured party has the rights provided in this part 6 and, except as otherwise provided in section
4-9-602, those provided by agreement of the parties. A secured party:
(1)  May reduce a claim to judgment, foreclose, or otherwise enforce the claim, security
interest, or agricultural lien by any available judicial procedure; and
(2)  If the collateral is documents, may proceed either as to the documents or as to the
goods they cover.
(b)  A secured party in possession of collateral or control of collateral under section 4-7-
106, 4-9-104, 4-9-105, 4-9-106, 4-9-107, or 4-9-107.5 has the rights and duties provided in
section 4-9-207.
(c)  The rights under subsections (a) and (b) of this section are cumulative and may be
exercised simultaneously.
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(d)  Except as otherwise provided in subsection (g) of this section and section 4-9-605,
after default, a debtor and an obligor have the rights provided in this part 6 and by agreement of
the parties.
(e)  If a secured party has reduced its claim to judgment, the lien of any levy that may be
made upon the collateral by virtue of an execution based upon the judgment relates back to the
earliest of:
(1)  The date of perfection of the security interest or agricultural lien in the collateral;
(2)  The date of filing a financing statement covering the collateral; or
(3)  Any date specified in a statute under which the agricultural lien was created.
(f)  A sale pursuant to an execution is a foreclosure of the security interest or agricultural
lien by judicial procedure within the meaning of this section. A secured party may purchase at
the sale and thereafter hold the collateral free of any other requirements of this article.
(g)  Except as otherwise provided in section 4-9-607 (c), this part 6 imposes no duties
upon a secured party that is a consignor or is a buyer of accounts, chattel paper, payment
intangibles, or promissory notes.
(h)  For purposes of this part 6, in taking possession of collateral by self-help, "breach of
the peace" includes, but is not limited to, engaging in the following actions without the
contemporaneous permission of the debtor:
(1)  Entering a locked or unlocked residence or residential garage;
(2)  Breaking, opening, or moving any lock, gate, or other barrier to enter enclosed real
property; or
(3)  Using or threatening to use violent means.
Source: L. 2001: Entire article R&RE, p. 1397, § 1, effective July 1. L. 2006: (b)
amended, p. 503, § 44, effective September 1. L. 2023: (b) amended, (SB 23-090), ch. 136, p.
559, § 76, effective August 7.
Editor's note: (1)  This section is similar to former § 4-9-501 as it existed prior to 2001.
(2)  Colorado legislative change: Colorado added subsection (h).
4-9-602.  Waiver and variance of rights and duties. Except as otherwise provided in
section 4-9-624, to the extent that they give rights to a debtor or obligor and impose duties on a
secured party, the debtor or obligor may not waive or vary the rules stated in the following listed
sections:
(1)  Section 4-9-207 (b)(4)(C), which deals with use and operation of the collateral by the
secured party;
(2)  Section 4-9-210, which deals with requests for an accounting and requests
concerning a list of collateral and statement of account;
(3)  Section 4-9-607 (c), which deals with collection and enforcement of collateral;
(4)  Sections 4-9-608 (a) and 4-9-615 (c) to the extent that they deal with application or
payment of noncash proceeds of collection, enforcement, or disposition;
(5)  Sections 4-9-608 (a) and 4-9-615 (d) to the extent that they require accounting for or
payment of surplus proceeds of collateral;
(6)  Section 4-9-609 to the extent that it imposes upon a secured party that takes
possession of collateral without judicial process the duty to do so without breach of the peace;
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(7)  Sections 4-9-610 (b), 4-9-611, 4-9-613, and 4-9-614, which deal with disposition of
collateral;
(8)  Section 4-9-615 (f), which deals with calculation of a deficiency or surplus when a
disposition is made to the secured party, a person related to the secured party, or a secondary
obligor;
(9)  Section 4-9-616, which deals with explanation of the calculation of a surplus or
deficiency;
(10)  Section 4-9-620, 4-9-621, and 4-9-622, which deal with acceptance of collateral in
satisfaction of obligation;
(11)  Section 4-9-623, which deals with redemption of collateral;
(12)  Section 4-9-624, which deals with permissible waivers; and
(13)  Sections 4-9-625 and 4-9-626, which deal with the secured party's liability for
failure to comply with this article.
Source: L. 2001: Entire article R&RE, p. 1398, § 1, effective July 1.
Editor's note: This section is similar to former § 4-9-501 (3) as it existed prior to 2001.
4-9-603.  Agreement on standards concerning rights and duties. (a)  The parties may
determine by agreement the standards measuring the fulfillment of the rights of a debtor or
obligor and the duties of a secured party under a rule stated in section 4-9-602 if the standards
are not unreasonable.
(b)  Subsection (a) of this section does not empower the parties to set standards affecting
the duty under section 4-9-609 to refrain from breaching the peace.
Source: L. 2001: Entire article R&RE, p. 1399, § 1, effective July 1.
Editor's note: (1)  This section is similar to former § 4-9-501 (3) as it existed prior to
2001.
(2)  Colorado legislative change: Colorado did not adopt the word "manifestly" before
the word "unreasonable" in subsection (a) and substituted the phrase "empower the parties to set
standards affecting" for the phrase "apply to" in subsection (b).
4-9-604.  Procedure if security agreement covers real property or fixtures. (a)  If a
security agreement covers both personal and real property, a secured party may proceed:
(1)  Under this part 6 as to the personal property without prejudicing any rights with
respect to the real property; or
(2)  As to both the personal property and the real property in accordance with the rights
with respect to the real property, in which case the other provisions of this part 6 do not apply.
(b)  Subject to subsection (c) of this section, if a security agreement covers goods that are
or become fixtures, a secured party may proceed:
(1)  Under this part 6; or
(2)  In accordance with the rights with respect to real property, in which case the other
provisions of this part 6 do not apply.
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(c)  Subject to the other provisions of this part 6, if a secured party holding a security
interest in fixtures has priority over all owners and encumbrancers of the real property, the
secured party, after default, may remove the collateral from the real property.
(d)  A secured party that removes collateral shall promptly reimburse any encumbrancer
or owner of the real property for the cost of repair of any physical injury caused by the removal.
The secured party need not reimburse the encumbrancer or owner for any diminution in value of
the real property caused by the absence of the goods removed or by any necessity of replacing
them. A person entitled to reimbursement may refuse permission to remove until the secured
party gives adequate assurance for the performance of the obligation to reimburse.
Source: L. 2001: Entire article R&RE, p. 1400, § 1, effective July 1.
Editor's note: (1)  The provisions of this section are similar to former §§ 4-9-313 (8) and
4-9-501 (4) as they existed prior to 2001.
(2)   Colorado legislative change: Colorado did not adopt the phrase "other than the
debtor" after the word "property" in the first sentence in subsection (d).
4-9-605.  Unknown debtor or secondary obligor. (a)  Except as provided in subsection
(b) of this section, a secured party does not owe a duty based on its status as secured party:
(1)  To a person that is a debtor or obligor, unless the secured party knows:
(A)  That the person is a debtor or obligor;
(B)  The identity of the person; and
(C)  How to communicate with the person; or
(2)  To a secured party or lienholder that has filed a financing statement against a person,
unless the secured party knows:
(A)  That the person is a debtor; and
(B)  The identity of the person.
(b)  A secured party owes a duty based on its status as a secured party to a person if, at
the time the secured party obtains control of collateral that is a controllable account, controllable
electronic record, or controllable payment intangible or at the time the security interest attaches
to the collateral, whichever is later:
(1)  The person is a debtor or obligor; and
(2)  The secured party knows that the information in subsection (a)(1)(A), (a)(1)(B), or
(a)(1)(C) of this section relating to the person is not provided by the collateral, a record attached
to or logically associated with the collateral, or the system in which the collateral is recorded.
Source: L. 2001: Entire article R&RE, p. 1400, § 1, effective July 1. L. 2023: IP
amended and (b) added, (SB 23-090), ch. 136, p. 559, § 77, effective August 7.
4-9-606.  Time of default for agricultural lien. For purposes of this part 6, a default
occurs in connection with an agricultural lien at the time the secured party becomes entitled to
enforce the lien in accordance with the statute under which it was created.
Source: L. 2001: Entire article R&RE, p. 1401, § 1, effective July 1.
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4-9-607.  Collection and enforcement by secured party. (a)  If so agreed, and in any
event after default, a secured party:
(1)  May notify an account debtor or other person obligated on collateral to make
payment or otherwise render performance to or for the benefit of the secured party;
(2)  May take any proceeds to which the secured party is entitled under section 4-9-315;
(3)  May enforce the obligations of an account debtor or other person obligated on
collateral and exercise the rights of the debtor with respect to the obligation of the account
debtor or other person obligated on collateral to make payment or otherwise render performance
to the debtor, and with respect to any property that secures the obligations of the account debtor
or other person obligated on the collateral;
(4)  If it holds a security interest in a deposit account perfected by control under section
4-9-104 (a)(1), may apply the balance of the deposit account to the obligation secured by the
deposit account; and
(5)  If it holds a security interest in a deposit account perfected by control under section
4-9-104 (a)(2) or (3), may instruct the bank to pay the balance of the deposit account to or for the
benefit of the secured party.
(b)  If necessary to enable a secured party to exercise under paragraph (3) of subsection
(a) of this section the right of a debtor to enforce a mortgage nonjudicially, the secured party
may record in the office in which a record of the mortgage is recorded:
(1)  A copy of the security agreement that creates or provides for a security interest in the
obligation secured by the mortgage; and
(2)  The secured party's sworn affidavit in recordable form stating that:
(A)  A default has occurred with respect to the obligation secured by the mortgage; and
(B)  The secured party is entitled to enforce the mortgage nonjudicially.
(c)  A secured party shall proceed in a commercially reasonable manner if the secured
party:
(1)  Undertakes to collect from or enforce an obligation of an account debtor or other
person obligated on collateral; and
(2)  Is entitled to charge back uncollected collateral or otherwise to full or limited
recourse against the debtor or a secondary obligor.
(d)  A secured party may deduct from the collections made pursuant to subsection (c) of
this section reasonable expenses of collection and enforcement, including reasonable attorney's
fees and reasonable legal expenses incurred by the secured party.
(e)  This section does not determine whether an account debtor, bank, or other person
obligated on collateral owes a duty to a secured party.
Source: L. 2001: Entire article R&RE, p. 1401, § 1, effective July 1. L. 2012: (b)(2)(A)
amended, (HB 12-1262), ch. 170, p. 604, § 15, effective July 1, 2013.
Editor's note: This section is similar to former § 4-9-502 as it existed prior to 2001.
4-9-608.  Application of proceeds of collection or enforcement - liability for
deficiency and right to surplus. (a)  If a security interest or agricultural lien secures payment or
performance of an obligation, the following rules apply:
Colorado Revised Statutes 2024 Page 315 of  368 Uncertified Printout
(1)  A secured party shall apply or pay over for application the cash proceeds of
collection or enforcement under section 4-9-607 in the following order to:
(A)  The reasonable expenses of collection and enforcement and, to the extent provided
for by agreement and not prohibited by law, reasonable attorney's fees and reasonable legal
expenses incurred by the secured party;
(B)  The satisfaction of obligations secured by the security interest or agricultural lien
under which the collection or enforcement is made; and
(C)  The satisfaction of obligations secured by any subordinate security interest in or
other lien on the collateral subject to the security interest or agricultural lien under which the
collection or enforcement is made if the secured party receives a signed demand for proceeds
before distribution of the proceeds is completed.
(2)  If requested by a secured party, a holder of a subordinate security interest or other
lien shall furnish reasonable proof of the interest or lien within a reasonable time. Unless the
holder complies, the secured party need not comply with the holder's demand under
subparagraph (C) of paragraph (1) of this subsection (a).
(3)  A secured party need not apply or pay over for application noncash proceeds of
collection and enforcement under section 4-9-607 unless the failure to do so would be
commercially unreasonable. A secured party that applies or pays over for application noncash
proceeds shall do so in a commercially reasonable manner.
(4)  A secured party shall account to and pay a debtor for any surplus, and the obligor is
liable for any deficiency.
(b)  If the underlying transaction is a sale of accounts, chattel paper, payment intangibles,
or promissory notes, the debtor is not entitled to any surplus, and the obligor is not liable for any
deficiency.
Source: L. 2001: Entire article R&RE, p. 1402, § 1, effective July 1. L. 2023: (a)(1)(C)
amended, (SB 23-090), ch. 136, p. 560, § 78, effective August 7.
Editor's note - Colorado legislative change: Colorado substituted the phrase "section 4-
9-607" for the phrase "this section" in subsections (a)(1) and (a)(3) and added the word
"reasonable" in subsection (a)(1)(A).
4-9-609.  Secured party's right to take possession after default. (a)  After default, a
secured party:
(1)  May take possession of the collateral; and
(2)  Without removal, may render equipment unusable and dispose of collateral on a
debtor's premises under section 4-9-610.
(b)  A secured party may proceed under subsection (a) of this section:
(1)  Pursuant to judicial process; or
(2)  Without judicial process, if it proceeds without breach of the peace.
(c)  If so agreed, and in any event after default, a secured party may require the debtor to
assemble the collateral and make it available to the secured party at a place to be designated by
the secured party which is reasonably convenient to both parties.
(d)  If the collateral is a manufactured home, as defined in section 42-1-102 (48.8), or a
trailer coach, as defined in section 42-1-102 (106), and is used and occupied by the debtor as a
Colorado Revised Statutes 2024 Page 316 of  368 Uncertified Printout
place of residence, the secured party may take possession of the collateral pursuant to this
section without judicial process only if there is clear and convincing evidence that the debtor has
vacated or abandoned the collateral or the debtor voluntarily surrenders the collateral to the
secured party.
(e)  In exercising its rights under paragraph (2) of subsection (a) of this section with
respect to collateral, a secured party may not disable or render unusable any computer program
or other similar device embedded in the collateral if immediate injury to any person or property
is a reasonably foreseeable consequence of such action. Any secured party who disables or
renders unusable such a computer program or other similar device in such circumstances shall be
liable in accordance with applicable rules of law to any person who sustains an injury to person
or property as a reasonably foreseeable result of the secured party's action.
Source: L. 2001: Entire article R&RE, p. 1403, § 1, effective July 1. L. 2022: (d)
amended, (SB 22-212), ch. 421, p. 2965, § 11, effective August 10.
Editor's note: (1)  This section is similar to former § 4-9-503 as it existed prior to 2001.
(2)  Colorado legislative change: Colorado added subsections (d) and (e).
4-9-610.  Disposition of collateral after default. (a)  After default, a secured party may
sell, lease, license, or otherwise dispose of any or all of the collateral in its present condition or
following any commercially reasonable preparation or processing.
(b)  Every aspect of a disposition of collateral, including the method, manner, time, place,
and other terms, must be commercially reasonable. If commercially reasonable, a secured party
may dispose of collateral by public or private proceedings, by one or more contracts, as a unit or
in parcels, and at any time and place and on any terms.
(c)  A secured party may purchase collateral:
(1)  At a public disposition; or
(2)  At a private disposition only if the collateral is of a kind that is customarily sold on a
recognized market or the subject of widely distributed standard price quotations.
(d)  A contract for sale, lease, license, or other disposition includes the warranties relating
to title, possession, quiet enjoyment, and the like which by operation of law accompany a
voluntary disposition of property of the kind subject to the contract.
(e)  A secured party may disclaim or modify warranties under subsection (d) of this
section:
(1)  In a manner that would be effective to disclaim or modify the warranties in a
voluntary disposition of property of the kind subject to the contract of disposition; or
(2)  By communicating to the purchaser, prior to completion of the transaction, a record
evidencing the contract for disposition and including an express disclaimer or modification of
the warranties.
(f)  A record is sufficient to disclaim warranties under subsection (e) of this section if it
indicates "There is no warranty relating to title, possession, quiet enjoyment, or the like in this
disposition" or uses words of similar import.
Source: L. 2001: Entire article R&RE, p. 1403, § 1, effective July 1.
Colorado Revised Statutes 2024 Page 317 of  368 Uncertified Printout
Editor's note: (1)  This section is similar to former § 4-9-504 as it existed prior to 2001.
(2)  Colorado legislative change: Colorado added the phrase "prior to completion of the
transaction," to subsection (e)(2).
4-9-611.  Notification before disposition of collateral - definition. (a)  In this section,
"notification date" means the earlier of the date on which:
(1)  A secured party sends to the debtor and any secondary obligor a signed notification
of disposition; or
(2)  The debtor and any secondary obligor waive the right to notification as provided in
section 4-9-624 (a).
(b)  Except as otherwise provided in subsection (d) of this section, a secured party that
disposes of collateral under section 4-9-610 shall send to the persons specified in subsection (c)
of this section a reasonable signed notification of disposition.
(c)  To comply with subsection (b) of this section, the secured party shall send a signed
notification of disposition to:
(1)  The debtor;
(2)  Any secondary obligor; and
(3)  If the collateral is other than consumer goods:
(A)  Any other person from which the secured party has received, before the notification
date, a signed notification of a claim of an interest in the collateral;
(B)  Any other secured party or lienholder that, ten days before the notification date, held
a security interest in or other lien on the collateral perfected by the filing of a financing
statement that:
(i)  Identified the collateral;
(ii)  Was indexed under the debtor's name as of that date; and
(iii)  Was filed in the office in which to file a financing statement against the debtor
covering the collateral as of that date; and
(C)  Any other secured party that, ten days before the notification date, held a security
interest in the collateral perfected by compliance with a statute, regulation, or treaty described in
section 4-9-311 (a).
(d)  Subsection (b) of this section does not apply if the collateral is perishable or the
creditor in good faith believes that the collateral threatens to decline speedily in value or is of a
type customarily sold on a recognized market. The specific reference to good faith in this
subsection (d) does not abrogate the general obligation of the secured party to proceed in a
commercially reasonable manner.
(e)  A secured party complies with the requirement for notification prescribed by
subsection (c)(3)(B) of this section if:
(1)  Not later than twenty days or earlier than thirty days before the notification date, the
secured party requests, in a commercially reasonable manner, information concerning financing
statements indexed under the debtor's name in the office indicated in subparagraph (B) of
paragraph (3) of subsection (c) of this section; and
(2)  Before the notification date, the secured party:
(A)  Did not receive a response to the request for information; or
Colorado Revised Statutes 2024 Page 318 of  368 Uncertified Printout
(B)  Received a response to the request for information and sent a signed notification of
disposition to each secured party or other lienholder named in that response whose financing
statement covered the collateral.
Source: L. 2001: Entire article R&RE, p. 1404, § 1, effective July 1. L. 2023: (a)(1), (b),
IP(c), (c)(3)(A), IP(e), and (e)(2)(B) amended, (SB 23-090), ch. 136, p. 560, § 79, effective
August 7.
Editor's note: (1)  This section is similar to former § 4-9-504 (3) as it existed prior to
2001.
(2)  Colorado legislative change: Colorado added the phrase "as provided in section 4-
9-624 (a)" to subsection (a)(2) and added the references to good faith in subsection (d).
4-9-612.  Timeliness of notification before disposition of collateral. (a)  Except as
otherwise provided in subsection (b) of this section, whether a notification is sent within a
reasonable time is a question of fact.
(b)  In a transaction other than a consumer transaction, a notification of disposition sent
after default and ten days or more before the earliest time of disposition set forth in the
notification is sent within a reasonable time before the disposition.
Source: L. 2001: Entire article R&RE, p. 1405, § 1, effective July 1.
4-9-613.  Contents and form of notification before disposition of collateral: general.
(a)  Except in a consumer-goods transaction, the following rules apply:
(1)  The contents of a notification of disposition are sufficient if the notification:
(A)  Describes the debtor and the secured party;
(B)  Describes the collateral that is the subject of the intended disposition;
(C)  States the method of intended disposition;
(D)  States that the debtor is entitled to an accounting of the unpaid indebtedness and
states the charge, if any, for an accounting; and
(E)  States the time and place of a public disposition or the time after which any other
disposition is to be made.
(2)  Whether the contents of a notification that lacks any of the information specified in
paragraph (1) of this subsection (a) are nevertheless sufficient is a question of fact.
(3)  The contents of a notification providing substantially the information specified in
paragraph (1) of this subsection (a) are sufficient, even if the notification includes:
(A)  Information not specified by said paragraph (1); or
(B)  Minor errors that do not cause damages to a person who relies on the information.
(4)  A particular phrasing of the notification is not required.
(5)  The following form of notification and the form appearing in section 4-9-614 (a)(3),
when completed in accordance with the instructions in subsection (b) of this section and section
4-9-614 (b), each provides sufficient information:
NOTIFICATION OF DISPOSITION OF COLLATERAL
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To: (Name of debtor, obligor, or other person to which the notification is sent)
From: (Name, address, and telephone number of secured party)
{1}  Name of any debtor that is not an addressee: (Name of each debtor)
{2}  We will sell (describe collateral) (to the highest qualified bidder) at public sale. A
sale could include a lease or license. The sale will be held as follows:
(Date)
(Time)
(Place)
{3}  We will sell (describe collateral) at private sale sometime after (date). A sale could
include a lease or license.
{4}  You are entitled to an accounting of the unpaid indebtedness secured by the property
that we intend to sell or, as applicable, lease or license.
{5}  If you request an accounting you must pay a charge of $ (amount).
{6}  You may request an accounting by calling us at (telephone number).
(b)  The following instructions apply to the form of notification in subsection (a)(5) of
this section:
(1)  The instructions in this subsection (b) refer to the numbers in braces before items in
the form of notification in subsection (a)(5) of this section. Do not include the numbers or braces
in the notification. The numbers and braces are used only for the purpose of these instructions.
(2)  Include and complete item {1} only if there is a debtor that is not an addressee of the
notification and list the name or names.
(3)  Include and complete either item {2}, if the notification relates to a public
disposition of the collateral, or item {3}, if the notification relates to a private disposition of the
collateral. If item {2} is included, include the words "to the highest qualified bidder" only if
applicable.
(4)  Include and complete items {4} and {6}.
(5)  Include and complete item {5} only if the sender will charge the recipient for an
accounting.
Source: L. 2001: Entire article R&RE, p. 1406, § 1, effective July 1. L. 2023: (a)(5)
amended and (b) added, (SB 23-090), ch. 136, p. 561, § 80, effective August 7.
Editor's note - Colorado legislative change: Colorado substituted the word
"disposition" for the word "sale" in subsection (a)(1)(E) and substituted the phrase "cause
damages to a person who relies on the information" for the phrase "seriously misleading" in
subsection (a)(3)(B). Colorado added the phrase "or writing us at [address]" at the end of the
notification form contained in subsection (a)(5).
4-9-614.  Contents and form of notification before disposition of collateral:
consumer-goods transaction. (a)  In a consumer-goods transaction, the following rules apply:
(1)  A notification of disposition must provide the following information:
(A)  The information specified in section 4-9-613 (a)(1);
(B)  A description of any liability for a deficiency of the person to which the notification
is sent;
Colorado Revised Statutes 2024 Page 320 of  368 Uncertified Printout
(C)  A telephone number and mailing address from which the amount that must be paid
to the secured party to redeem the collateral under section 4-9-623 is available; and
(D)  A telephone number and mailing address from which additional information
concerning the disposition and the obligation secured is available.
(2)  A particular phrasing of the notification is not required.
(3)  The following form of notification, when completed in accordance with the
instructions in subsection (b) of this section, provides sufficient information:
[Name and address of secured party]
[Date]
NOTICE OF OUR PLAN TO SELL PROPERTY
(Name and address of any obligor who is also a debtor)
Subject: (Identify transaction)
We have your (describe collateral), because you broke promises in our agreement.
{1}  We will sell (describe collateral) at public sale. A sale could include a lease or
license. The sale will be held as follows:
(Date)
(Time)
(Place)
You may attend the sale and bring bidders if you want.
{2}  We will sell (describe collateral) at private sale sometime after (date). A sale could
include a lease or license.
{3}  The money that we get from the sale, after paying our costs, will reduce the amount
you owe. If we get less money than you owe, you (will or will not, as applicable) still owe us the
difference. If we get more money than you owe, you will get the extra money, unless we must
pay it to someone else.
{4}  You can get the property back at any time before we sell it by paying us the full
amount you owe, not just the past due payments, including our expenses. To learn the exact
amount you must pay, call us at (telephone number).
{5}  If you want us to explain to you in (writing) (writing or in (description of electronic
record)) (description of electronic record) how we have figured the amount that you owe us, {6}
call us at (telephone number) (or) (write us at (secured party's address)) (or contact us by
(description of electronic communication method)) {7} and request (a written explanation) (a
written explanation or an explanation in (description of electronic record)) (an explanation in
(description of electronic record)).
{8}  We will charge you $ (amount) for the explanation if we sent you another written
explanation of the amount you owe us within the last six months.
{9}  If you need more information about the sale (call us at (telephone number)) (or)
(write us at (secured party's address)) (or contact us by (description of electronic communication
method)).
{10}  We are sending this notice to the following other people who have senate bill 23-
090 insert copy an interest in (describe collateral) or who owe money under your agreement:
(Names of all other debtors and obligors, if any)
(4)  A notification in the form of paragraph (3) of this subsection (a) is sufficient, even if
additional information appears at the end of the form.
Colorado Revised Statutes 2024 Page 321 of  368 Uncertified Printout
(5)  A notification in the form of paragraph (3) of this subsection (a) is sufficient, even if
it includes errors in information not required by paragraph (1) of this subsection (a), unless the
error is misleading with respect to rights arising under this article.
(6)  If a notification under this section is not in the form of paragraph (3) of this
subsection (a), law other than this article determines the effect of including information not
required by paragraph (1) of this section.
(b)  The following instructions apply to the form of notification in subsection (a)(3) of
this section:
(1)  The instructions in this subsection (b) refer to the numbers in braces before items in
the form of notification in subsection (a)(3) of this section. Do not include the numbers or braces
in the notification. The numbers and braces are used only for the purpose of these instructions.
(2)  Include and complete either item {1}, if the notification relates to a public
disposition of the collateral, or item {2}, if the notification relates to a private disposition of the
collateral.
(3)  Include and complete items {3}, {4}, {5}, {6}, and {7}.
(4)  In item {5}, include and complete any one of the three alternative methods for the
explanation-writing, writing or electronic record, or electronic record.
(5)  In item {6}, include the telephone number. In addition, the sender may include and
complete either or both of the two additional alternative methods of communication--writing or
electronic communication--for the recipient of the notification to communicate with the sender.
Neither of the two additional methods of communication is required to be included.
(6)  In item {7}, include and complete the method or methods for the explanation--
writing, writing or electronic record, or electronic record-included in item {5}.
(7)  Include and complete item {8} only if a written explanation is included in item {5}
as a method for communicating the explanation and the sender will charge the recipient for
another written explanation.
(8)  In item {9}, include either the telephone number or the address or both the telephone
number and the address. In addition, the sender may include and complete the additional method
of communication--electronic communication--for the recipient of the notification to
communicate with the sender. The additional method of electronic communication is not
required to be included.
(9)  If item {10} does not apply, insert "None" after "agreement:".
Source: L. 2001: Entire article R&RE, p. 1407, § 1, effective July 1. L. 2023: (a)(1)(A)
and (a)(3) amended and (b) added, (SB 23-090), ch. 136, p. 563, § 81, effective August 7.
Editor's note - Colorado legislative change: Colorado added the phrase "and mailing
address" in subsection (a)(1)(C) and substituted "and" for "or" in subsection (a)(1)(D). Colorado
added the phrase "or write us at [secured party's address]" in the form regarding how to learn the
exact amount the debtor must pay. The uniform act's form regarding explanations reads: "We
will charge you $           for the explanation if we sent you another written explanation of the
amount you owe us within the last six months."
Colorado Revised Statutes 2024 Page 322 of  368 Uncertified Printout
4-9-615.  Application of proceeds of disposition; liability for deficiency and right to
surplus. (a)  A secured party shall apply or pay over for application the cash proceeds of
disposition under section 4-9-610 in the following order to:
(1)  The reasonable expenses of retaking, holding, preparing for disposition, processing,
and disposing, and, to the extent provided for by agreement and not prohibited by law,
reasonable attorney's fees and reasonable legal expenses incurred by the secured party;
(2)  The satisfaction of obligations secured by the security interest or agricultural lien
under which the disposition is made;
(3)  The satisfaction of obligations secured by any subordinate security interest in or
other subordinate lien on the collateral if:
(A)  The secured party receives from the holder of the subordinate security interest or
other lien a signed demand for proceeds before distribution of the proceeds is completed; and
(B)  In a case in which a consignor has an interest in the collateral, the subordinate
security interest or other lien is senior to the interest of the consignor; and
(4)  A secured party that is a consignor of the collateral if the secured party receives from
the consignor a signed demand for proceeds before distribution of the proceeds is completed.
(b)  If requested by a secured party, a holder of a subordinate security interest or other
lien shall furnish reasonable proof of the interest or lien within a reasonable time. Unless the
holder does so, the secured party need not comply with the holder's demand under paragraph (3)
of subsection (a) of this section.
(c)  A secured party need not apply or pay over for application noncash proceeds of
disposition under section 4-9-610 unless the failure to do so would be commercially
unreasonable. A secured party that applies or pays over for application noncash proceeds shall
do so in a commercially reasonable manner.
(d)  If the security interest under which a disposition is made secures payment or
performance of an obligation, after making the payments and applications required by subsection
(a) of this section and permitted by subsection (c) of this section:
(1)  Unless paragraph (4) of subsection (a) of this section requires the secured party to
apply or pay over cash proceeds to a consignor, the secured party shall account to and pay a
debtor for any surplus; and
(2)  The obligor is liable for any deficiency.
(e)  If the underlying transaction is a sale of accounts, chattel paper, payment intangibles,
or promissory notes:
(1)  The debtor is not entitled to any surplus; and
(2)  The obligor is not liable for any deficiency.
(f)  The surplus or deficiency following a disposition is calculated based on the amount
of proceeds that would have been realized in a disposition complying with this part 6 to a
transferee other than the secured party, a person related to the secured party, or a secondary
obligor if:
(1)  The transferee in the disposition is the secured party, a person related to the secured
party, or a secondary obligor; and
(2)  The amount of proceeds of the disposition is significantly below the range of
proceeds that a complying disposition to a person other than the secured party, a person related
to the secured party, or a secondary obligor would have brought.
Colorado Revised Statutes 2024 Page 323 of  368 Uncertified Printout
(g)  A secured party that receives cash proceeds of a disposition in good faith and without
knowledge that the receipt violates the rights of the holder of a security interest or other lien that
is not subordinate to the security interest or agricultural lien under which the disposition is made:
(1)  Takes the cash proceeds free of the security interest or other lien;
(2)  Is not obligated to apply the proceeds of the disposition to the satisfaction of
obligations secured by the security interest or other lien; and
(3)  Is not obligated to account to or pay the holder of the security interest or other lien
for any surplus.
Source: L. 2001: Entire article R&RE, p. 1409, § 1, effective July 1. L. 2023: (a)(3)(A)
and (a)(4) amended, (SB 23-090), ch. 136, p. 566, § 82, effective August 7.
Editor's note: (1)  This section is similar to former § 4-9-504 as it existed prior to 2001.
(2)  Colorado legislative change: Colorado added the phrase "under section 4-9-610" in
the introductory portion to subsection (a), added the word "reasonable" before the word "legal"
in subsection (a)(1), and substituted the phrase "section 4-9-610" for "this section" in subsection
(c).
4-9-616.  Explanation of calculation of surplus or deficiency - definitions. (a)  In this
section:
(1)  "Explanation" means a record that:
(A)  States the amount of the surplus or deficiency;
(B)  Provides an explanation in accordance with subsection (c) of this section of how the
secured party calculated the surplus or deficiency;
(C)  States, if applicable, that future debits, credits, charges, including additional credit
service charges or interest, rebates, and expenses may affect the amount of the surplus or
deficiency; and
(D)  Provides a telephone number and mailing address from which additional information
concerning the transaction is available.
(2)  "Request" means a record:
(A)  Signed by a debtor or consumer obligor;
(B)  Requesting that the recipient provide an explanation; and
(C)  Sent after disposition of the collateral under section 4-9-610.
(b)  In a consumer-goods transaction in which the debtor is entitled to a surplus or a
consumer obligor is liable for a deficiency under section 4-9-615, the secured party shall:
(1)  Send an explanation to the debtor or consumer obligor, as applicable, after the
disposition and:
(A)  Before or when the secured party accounts to the debtor and pays any surplus or first
makes demand in a record on the consumer obligor after the disposition for payment of the
deficiency; and
(B)  Within fourteen days after receipt of a request; or
(2)  In the case of a consumer obligor who is liable for a deficiency, within fourteen days
after receipt of a request, send to the consumer obligor a record waiving the secured party's right
to a deficiency.
Colorado Revised Statutes 2024 Page 324 of  368 Uncertified Printout
(c)  To comply with subsection (a)(1)(B) of this section, an explanation must provide the
following information in the following order:
(1)  The aggregate amount of obligations secured by the security interest under which the
disposition was made, and, if the amount reflects a rebate of unearned interest or credit service
charge, an indication of that fact, calculated as of a specified date:
(A)  If the secured party takes or receives possession of the collateral after default, not
more than thirty-five days before the secured party takes or receives possession; or
(B)  If the secured party takes or receives possession of the collateral before default or
does not take possession of the collateral, not more than thirty-five days before the disposition;
(2)  The amount of proceeds of the disposition;
(3)  The aggregate amount of the obligations after deducting the amount of proceeds;
(4)  The amount, in the aggregate or by type, and types of expenses, including reasonable
expenses of retaking, holding, preparing for disposition, processing, and disposing of the
collateral, and reasonable attorney's fees secured by the collateral which are known to the
secured party and relate to the current disposition;
(5)  The amount, in the aggregate or by type, and types of credits, including rebates of
interest or credit service charges, to which the obligor is known to be entitled and which are not
reflected in the amount in paragraph (1) of this subsection (c); and
(6)  The amount of the surplus or deficiency.
(d)  A particular phrasing of the explanation is not required. An explanation complying
substantially with the requirements of subsection (a) of this section is sufficient, even if it
includes minor errors that do not cause damages to a person who relies on the information.
(e)  A debtor or consumer obligor is entitled without charge to three responses to a
request under this section during any six-month period in which the secured party did not send to
the debtor or consumer obligor an explanation pursuant to paragraph (1) of subsection (b) of this
section. The secured party may require payment of a charge, not exceeding fifteen dollars, for
each additional response.
Source: L. 2001: Entire article R&RE, p. 1410, § 1, effective July 1. L. 2023: IP(a)(1),
(a)(2)(A), (b)(1)(A), and IP(c) amended, (SB 23-090), ch. 136, p. 566 , § 83, effective August 7.
Editor's note - Colorado legislative change: Colorado substituted the word "and" for
"or" in subsection (a)(1)(D), twice added the word "reasonable" to subsection (c)(4), substituted
the phrase "do not cause damages to a person who relies on the information" for the phrase "are
not seriously misleading" in subsection (d), and substituted the phrase "three responses" for "one
response" and reduced the charge from $25 to $15 in subsection (e).
4-9-617.  Rights of transferee of collateral. (a)  A secured party's disposition of
collateral after default:
(1)  Transfers to a transferee for value all of the debtor's rights in the collateral;
(2)  Discharges the security interest under which the disposition is made; and
(3)  Discharges any subordinate security interest or other subordinate lien.
(b)  A transferee that acts in good faith takes free of the rights and interests described in
subsection (a) of this section, even if the secured party fails to comply with this article or the
requirements of any judicial proceeding.
Colorado Revised Statutes 2024 Page 325 of  368 Uncertified Printout
(c)  If a transferee does not take free of the rights and interests described in subsection (a)
of this section, the transferee takes the collateral subject to:
(1)  The debtor's rights in the collateral;
(2)  The security interest or agricultural lien under which the disposition is made; and
(3)  Any other security interest or other lien.
Source: L. 2001: Entire article R&RE, p. 1412, § 1, effective July 1.
Editor's note: This section is similar to former § 4-9-504 (4) as it existed prior to 2001.
4-9-618.  Rights and duties of certain secondary obligors. (a)  A secondary obligor
acquires the rights and becomes obligated to perform the duties of the secured party after the
secondary obligor:
(1)  Receives an assignment of a secured obligation from the secured party;
(2)  Receives a transfer of collateral from the secured party and agrees to accept the
rights and assume the duties of the secured party; or
(3)  Is subrogated to the rights of a secured party with respect to collateral.
(b)  An assignment, transfer, or subrogation described in subsection (a) of this section:
(1)  Is not a disposition of collateral under section 4-9-610; and
(2)  Relieves the secured party of further duties under this article.
Source: L. 2001: Entire article R&RE, p. 1413, § 1, effective July 1.
Editor's note: This section is similar to former § 4-9-504 (5) as it existed prior to 2001.
4-9-619.  Transfer of record or legal title. (a)  In this section, "transfer statement"
means a record signed by a secured party stating:
(1)  That the debtor has defaulted in connection with an obligation secured by specified
collateral;
(2)  That the secured party has exercised its post-default remedies with respect to the
collateral;
(3)  That, by reason of the exercise, a transferee has acquired the rights of the debtor in
the collateral; and
(4)  The name and mailing address of the secured party, debtor, and transferee.
(b)  A transfer statement entitles the transferee to the transfer of record of all rights of the
debtor in the collateral specified in the statement in any official filing, recording, registration, or
certificate-of-title system covering the collateral. If a transfer statement is presented with the
applicable fee and request form to the official or office responsible for maintaining the system,
the official or office shall:
(1)  Accept the transfer statement;
(2)  Promptly amend its records to reflect the transfer; and
(3)  If applicable, issue a new appropriate certificate of title in the name of the transferee.
(c)  A transfer of the record or legal title to collateral to a secured party under subsection
(b) of this section or otherwise is not of itself a disposition of collateral under this article and
does not of itself relieve the secured party of its duties under this article.
Colorado Revised Statutes 2024 Page 326 of  368 Uncertified Printout
Source: L. 2001: Entire article R&RE, p. 1413, § 1, effective July 1. L. 2023: IP(a)
amended, (SB 23-090), ch. 136, p. 567, § 84, effective August 7.
4-9-620.  Acceptance of collateral in full or partial satisfaction of obligation -
compulsory disposition of collateral. (a)  Except as otherwise provided in subsection (g) of this
section, a secured party may accept collateral in full or partial satisfaction of the obligation it
secures only if:
(1)  The debtor consents to the acceptance under subsection (c) of this section;
(2)  The secured party does not receive, within the time set forth in subsection (d) of this
section, a notification of objection to the proposal signed by:
(A)  A person to which the secured party was required to send a proposal under section 4-
9-621; or
(B)  Any other person, other than the debtor, holding an interest in the collateral
subordinate to the security interest that is the subject of the proposal;
(3)  If the collateral is consumer goods, the collateral is not in the possession of the
debtor when the debtor consents to the acceptance; and
(4)  Subsection (e) of this section does not require the secured party to dispose of the
collateral or the debtor waives the requirement pursuant to section 4-9-624.
(b)  Reserved.
(c)  For purposes of this section:
(1)  A debtor consents to an acceptance of collateral in partial satisfaction of the
obligation it secures only if the debtor agrees to the terms of the acceptance in a record signed
after default; and
(2)  A debtor consents to an acceptance of collateral in full satisfaction of the obligation
it secures only if the debtor agrees to the terms of the acceptance in a record signed after default
or the secured party:
(A)  Sends to the debtor after default a proposal that is unconditional or subject only to a
condition that collateral not in the possession of the secured party be preserved or maintained;
(B)  In the proposal, proposes to accept collateral in full satisfaction of the obligation it
secures; and
(C)  Does not receive a notification of objection signed by the debtor within twenty days
after the proposal is sent.
(d)  To be effective under paragraph (2) of subsection (a) of this section, a notification of
objection must be received by the secured party:
(1)  In the case of a person to which the proposal was sent pursuant to section 4-9-621,
within twenty days after notification was sent to that person; and
(2)  In other cases:
(A)  Within twenty days after the last notification was sent pursuant to section 4-9-621;
or
(B)  If a notification was not sent, before the debtor consents to the acceptance under
subsection (c) of this section.
(e)  A secured party that has taken possession of collateral shall dispose of the collateral
pursuant to section 4-9-610 within the time specified in subsection (f) of this section if:
(1)  Sixty percent of the cash price has been paid in the case of a purchase-money
security interest in consumer goods; or
Colorado Revised Statutes 2024 Page 327 of  368 Uncertified Printout
(2)  Sixty percent of the principal amount of the obligation secured has been paid in the
case of a non-purchase-money security interest in consumer goods.
(f)  To comply with subsection (e) of this section, the secured party shall dispose of the
collateral:
(1)  Within ninety days after taking possession; or
(2)  Within any longer period to which the debtor and all secondary obligors have agreed
in an agreement to that effect entered into and signed after default.
(g)  In a consumer transaction, a secured party may not accept collateral in partial
satisfaction of the obligation it secures.
Source: L. 2001: Entire article R&RE, p. 1414, § 1, effective July 1. L. 2023: IP(a)(2),
(c)(1), IP(c)(2), (c)(2)(C), and (f)(2) amended, (SB 23-090), ch. 136, p. 567, § 85, effective
August 7.
Editor's note: This section is similar to former § 4-9-505 as it existed prior to 2001.
4-9-621.  Notification of proposal to accept collateral. (a)  A secured party that desires
to accept collateral in full or partial satisfaction of the obligation it secures shall send its proposal
to:
(1)  Any person from which the secured party has received, before the debtor consented
to the acceptance, a signed notification of a claim of an interest in the collateral;
(2)  Any other secured party or lienholder that, ten days before the debtor consented to
the acceptance, held a security interest in or other lien on the collateral perfected by the filing of
a financing statement that:
(A)  Identified the collateral;
(B)  Was indexed under the debtor's name as of that date; and
(C)  Was filed in the office or offices in which to file a financing statement against the
debtor covering the collateral as of that date; and
(3)  Any other secured party that, ten days before the debtor consented to the acceptance,
held a security interest in the collateral perfected by compliance with a statute, regulation, or
treaty described in section 4-9-311 (a).
(b)  A secured party that desires to accept collateral in partial satisfaction of the
obligation it secures shall send its proposal to any secondary obligor in addition to the persons
described in subsection (a) of this section.
Source: L. 2001: Entire article R&RE, p. 1415, § 1, effective July 1. L. 2023: (a)(1)
amended, (SB 23-090), ch. 136, p. 568, § 86, effective August 7.
Editor's note: This section is similar to former § 4-9-505 as it existed prior to 2001.
4-9-622.  Effect of acceptance of collateral. (a)  A secured party's acceptance of
collateral in full or partial satisfaction of the obligation it secures:
(1)  Discharges the obligation to the extent consented to by the debtor;
(2)  Transfers to the secured party all of a debtor's rights in the collateral;
Colorado Revised Statutes 2024 Page 328 of  368 Uncertified Printout
(3)  Discharges the security interest or agricultural lien that is the subject of the debtor's
consent and any subordinate security interest or other subordinate lien; and
(4)  Terminates any other subordinate interest.
(b)  A subordinate interest is discharged or terminated under subsection (a) of this
section, even if the secured party fails to comply with this article.
Source: L. 2001: Entire article R&RE, p. 1416, § 1, effective July 1.
4-9-623.  Right to redeem collateral. (a)  A debtor, any secondary obligor, or any other
secured party or lienholder may redeem collateral.
(b)  To redeem collateral, a person shall tender:
(1)  Fulfillment of all obligations secured by the collateral; and
(2)  The reasonable expenses and reasonable attorney's fees described in section 4-9-615
(a)(1).
(c)  A redemption may occur at any time before a secured party:
(1)  Has collected collateral under section 4-9-607;
(2)  Has disposed of collateral or entered into a contract for its disposition under section
4-9-610; or
(3)  Has accepted collateral in full or partial satisfaction of the obligation it secures under
section 4-9-622.
Source: L. 2001: Entire article R&RE, p. 1416, § 1, effective July 1.
Editor's note: (1)  This section is similar to former § 4-9-506 as it existed prior to 2001.
(2)  Colorado legislative change: Colorado added the word "reasonable" before the
word "attorney's" in subsection (b)(2).
4-9-624.  Waiver. (a)  A debtor or secondary obligor may waive the right to notification
of disposition of collateral under section 4-9-611 only by an agreement to that effect entered into
and signed after default.
(b)  A debtor may waive the right to require disposition of collateral under section 4-9-
620 (e) only by an agreement to that effect entered into and signed after default.
(c)  Except in a consumer-goods transaction, a debtor or secondary obligor may waive
the right to redeem collateral under section 4-9-623. Any such waiver must be by an agreement
to that effect entered into and signed after default.
Source: L. 2001: Entire article R&RE, p. 1417, § 1, effective July 1. L. 2023: Entire
section amended, (SB 23-090), ch. 136, p. 568, § 87, effective August 7.
Editor's note: (1)  The provisions of this section are similar to provisions of several
former sections as they existed prior to 2001. For a detailed comparison, see the comparative
tables located in the back of the index.
(2)  Colorado legislative change: Colorado added the phrase "Any such waiver must be"
in subsection (c).
Colorado Revised Statutes 2024 Page 329 of  368 Uncertified Printout
4-9-625.  Remedies for secured party's failure to comply with article. (a)  If it is
established that a secured party is not proceeding in accordance with this article, a court may
order or restrain collection, enforcement, or disposition of collateral on appropriate terms and
conditions.
(b)  Subject to subsections (c), (d), and (f) of this section, a person is liable for damages
in the amount of any loss caused by a failure to comply with this article. Loss caused by a failure
to comply may include loss resulting from the debtor's inability to obtain, or increased costs of,
alternative financing.
(c)  Except as otherwise provided in section 4-9-628:
(1)  A person that, at the time of the failure, was a debtor, was an obligor, or held a
security interest in or other lien on the collateral may recover damages under subsection (b) of
this section for its loss; and
(2)  If the collateral is consumer goods, a person that was a debtor or secondary obligor at
the time a secured party failed to comply with this part 6 may recover for that failure in any
event an amount not less than the credit service charge plus ten percent of the principal amount
of the obligation or the time-price differential plus ten percent of the cash price.
(d)  A debtor whose deficiency is eliminated under section 4-9-626 may recover damages
for the loss of any surplus. However, a debtor or secondary obligor whose deficiency is
eliminated or reduced under section 4-9-626 may not otherwise recover under subsection (b) of
this section for noncompliance with the provisions of this part 6 relating to collection,
enforcement, disposition, or acceptance.
(e)  In addition to any damages recoverable under subsection (b) of this section, the
debtor, consumer obligor, or person named as a debtor in a filed record, as applicable, may
recover five hundred dollars in each case from a person that:
(1)  Fails to comply with section 4-9-208;
(2)  Fails to comply with section 4-9-209;
(3)  Files a record that the person is not entitled to file under section 4-9-509 (a);
(4)  Fails to cause the secured party of record to file or send a termination statement as
required by section 4-9-513 (a) or (c);
(5)  Fails to comply with section 4-9-616 (b)(1) and whose failure is part of a pattern, or
consistent with a practice, of noncompliance; or
(6)  Fails to comply with section 4-9-616 (b)(2).
(f)  A debtor or consumer obligor may recover damages under subsection (b) of this
section and, in addition, five hundred dollars in each case from a person that, without reasonable
cause, fails to comply with a request under section 4-9-210. A recipient of a request under
section 4-9-210 which never claimed an interest in the collateral or obligations that are the
subject of a request under that section has a reasonable excuse for failure to comply with the
request within the meaning of this subsection (f).
(g)  If a secured party fails to comply with a request regarding a list of collateral or a
statement of account under section 4-9-210, the secured party may claim a security interest only
as shown in the list or statement included in the request as against a person that is reasonably
misled by the failure.
(h)  If a person in the course of taking possession of collateral by self-help breaches the
peace as defined in paragraph (1), (2), or (3) of subsection (h) of section 4-9-601 or uses
Colorado Revised Statutes 2024 Page 330 of  368 Uncertified Printout
uniformed law enforcement officers without the benefit of judicial process, that person shall be
liable to the debtor for one thousand dollars as a penalty.
(i)  The prevailing party in any legal action, other than a class action, under this section
may also recover reasonable attorney's fees and reasonable legal expenses; except that as to
consumer transactions, such attorney's fees for any party shall not exceed fifteen percent of the
unpaid debt or such additional fee as may be directed by the court.
(j)  The number "five hundred dollars" as provided in subsections (e) and (f) of this
section shall be increased on July 1, 2004, and on July 1 of each third succeeding year in
accordance with any aggregate increase in the United States department of labor bureau of labor
statistics consumer price index for all urban consumers for the Denver-Boulder consolidated
metropolitan statistical area for the preceding three calendar years as reflected in the final
consumer price index for the Denver-Boulder consolidated metropolitan statistical area for the
calendar year immediately preceding the calendar year in which the adjustment is to be made;
except that:
(1)  Such dollar amount shall not be increased if such final consumer price index does not
reflect an aggregate increase in the consumer price index for the preceding three calendar years
and shall be decreased if such final consumer price index reflects an aggregate decrease in the
consumer price index for the preceding three calendar years.
(2)  The dollar amount as adjusted pursuant to this subsection (j) shall be rounded to the
nearest ten dollars.
Source: L. 2001: Entire article R&RE, p. 1417, § 1, effective July 1. L. 2002: (j)(1)
amended, p. 939, § 8, effective August 7.
Editor's note: (1)  This section is similar to former § 4-9-507 as it existed prior to 2001.
(2)  Colorado legislative change: Colorado did not adopt the phrase "with a request
under section 4-9-210" after the word "comply" in the second sentence of subsection (b), added
the phrase "list or" in subsection (g), and added subsections (h) through (j).
4-9-626.  Action in which deficiency or surplus is in issue. (a)  In an action arising
from a transaction, other than a consumer transaction, in which the amount of a deficiency or
surplus is in issue, the following rules apply:
(1)  A secured party need not prove compliance with the provisions of this part 6 relating
to collection, enforcement, disposition, or acceptance unless the debtor or a secondary obligor
places the secured party's compliance in issue.
(2)  If the secured party's compliance is placed in issue, the secured party has the burden
of establishing that the collection, enforcement, disposition, or acceptance was conducted in
accordance with this part 6.
(3)  Except as otherwise provided in section 4-9-628, if a secured party fails to prove that
the collection, enforcement, disposition, or acceptance was conducted in accordance with the
provisions of this part 6 relating to collection, enforcement, disposition, or acceptance, the
liability of a debtor or a secondary obligor for a deficiency is limited to an amount by which the
sum of the secured obligation, reasonable expenses, and reasonable attorney's fees exceeds the
greater of:
(A)  The proceeds of the collection, enforcement, disposition, or acceptance; or
Colorado Revised Statutes 2024 Page 331 of  368 Uncertified Printout
(B)  The amount of proceeds that would have been realized had the noncomplying
secured party proceeded in accordance with the provisions of this part 6 relating to collection,
enforcement, disposition, or acceptance.
(4)  For purposes of subparagraph (B) of paragraph (3) of this subsection (a), the amount
of proceeds that would have been realized is equal to the sum of the secured obligation,
reasonable expenses, and reasonable attorney's fees unless the secured party proves that the
amount is less than that sum.
(5)  If a deficiency or surplus is calculated under section 4-9-615 (f), the debtor or obligor
has the burden of establishing that the amount of proceeds of the disposition is significantly
below the range of prices that a complying disposition to a person other than the secured party, a
person related to the secured party, or a secondary obligor would have brought.
(b)  Subject to section 5-5-103, C.R.S., the limitation of the rules in subsection (a) of this
section to transactions other than consumer transactions is intended to leave to the court the
determination of the proper rules in consumer transactions. The court may not infer from that
limitation the nature of the proper rule in consumer transactions and may continue to apply
established approaches.
Source: L. 2001: Entire article R&RE, p. 1419, § 1, effective July 1.
Editor's note - Colorado legislative change: Colorado added the word "reasonable" to
subsections (a)(3) and (a)(4) and added the phrase "Subject to section 5-5-103, C.R.S.," to
subsection (b).
4-9-627.  Determination of whether conduct was commercially reasonable. (a)  The
fact that a greater amount could have been obtained by a collection, enforcement, disposition, or
acceptance at a different time or in a different method from that selected by the secured party is
not of itself sufficient to preclude the secured party from establishing that the collection,
enforcement, disposition, or acceptance was made in a commercially reasonable manner.
(b)  A disposition of collateral is made in a commercially reasonable manner if the
disposition is made:
(1)  In the usual manner on any recognized market;
(2)  At the price current in any recognized market at the time of the disposition; or
(3)  Otherwise in conformity with reasonable commercial practices among dealers in the
type of property that was the subject of the disposition.
(c)  A collection, enforcement, disposition, or acceptance is commercially reasonable if it
has been approved:
(1)  In a judicial proceeding;
(2)  By a bona fide creditors' committee;
(3)  By a representative of creditors; or
(4)  By an assignee for the benefit of creditors.
(d)  Approval under subsection (c) of this section need not be obtained, and lack of
approval does not mean that the collection, enforcement, disposition, or acceptance is not
commercially reasonable.
Source: L. 2001: Entire article R&RE, p. 1420, § 1, effective July 1.
Colorado Revised Statutes 2024 Page 332 of  368 Uncertified Printout
Editor's note: This section is similar to former § 4-9-507 (2) as it existed prior to 2001.
4-9-628.  Nonliability and limitation on liability of secured party - liability of
secondary obligor. (a)  Subject to subsection (f) of this section, unless a secured party knows
that a person is a debtor or obligor, knows the identity of the person, and knows how to
communicate with the person:
(1)  The secured party is not liable to the person, or to a secured party or lienholder that
has filed a financing statement against the person, for failure to comply with this article; and
(2)  The secured party's failure to comply with this article does not affect the liability of
the person for a deficiency.
(b)  Subject to subsection (f) of this section, a secured party is not liable because of its
status as secured party:
(1)  To a person that is a debtor or obligor, unless the secured party knows:
(A)  That the person is a debtor or obligor;
(B)  The identity of the person; and
(C)  How to communicate with the person; or
(2)  To a secured party or lienholder that has filed a financing statement against a person,
unless the secured party knows:
(A)  That the person is a debtor; and
(B)  The identity of the person.
(c)  A secured party is not liable to any person, and a person's liability for a deficiency is
not affected, because of any act or omission arising out of the secured party's reasonable belief
that a transaction is not a consumer-goods transaction or a consumer transaction or that goods
are not consumer goods, if the secured party's belief is based on its reasonable reliance on:
(1)  A record authenticated by the debtor concerning the purpose for which collateral was
to be used, acquired, or held, or indicating that collateral is not a consumer deposit account; or
(2)  A record authenticated by the obligor concerning the purpose for which a secured
obligation was incurred.
(d) (1)  A secured party is not liable under section 4-9-625 (c)(2) for its failure to comply
with section 4-9-616.
(2)  Repealed.
(e)  A secured party is not liable under section 4-9-625 (c)(2) more than once with
respect to any one secured obligation.
(f)  Subsections (a) and (b) of this section do not apply to limit the liability of a secured
party to a person if, at the time the secured party obtains control of collateral that is a
controllable account, controllable electronic record, or controllable payment intangible or at the
time the security interest attaches to the collateral, whichever is later:
(1)  The person is a debtor or obligor; and
(2)  The secured party knows that the information in subsection (b)(1)(A), (b)(1)(B), or
(b)(1)(C) of this section relating to the person is not provided by the collateral, a record attached
to or logically associated with the collateral, or the system in which the collateral is recorded.
Source: L. 2001: Entire article R&RE, p. 1421, § 1, effective July 1. L. 2002: (d)(2)
repealed, p. 939, § 9, effective August 7. L. 2023: IP(a) and IP(b) amended and (f) added, (SB
23-090), ch. 136, p. 568, § 88, effective August 7.
Colorado Revised Statutes 2024 Page 333 of  368 Uncertified Printout
Editor's note - Colorado legislative change: Colorado substituted the phrase "A record
authenticated by the debtor" for the phrase "A debtor's representation" and added the phrase "or
indicating that collateral is not a consumer deposit account" in subsection (c)(1), substituted the
phrase "A record authenticated by the obligor" for the phrase "An obligor's representation" in
subsection (c)(2), and did not adopt subsection (d) of the uniform act. The uniform act's
subsection (e) states: "A secured party is not liable under section 4-9-625(c)(2) more than once
with respect to any one secured obligation."
4-9-629.  Secured party's liability when taking possession after default - legislative
declaration - fund. (a)  The general assembly recognizes that, in the past, certain debtors may
have been disadvantaged by the actions of repossessors and that such debtors were then unable
to obtain just redress for their losses in the courts, especially in cases in which the creditor who
initiated the action by employing or contracting with the repossessor was shielded from liability
because the repossessor was categorized by the courts as an independent contractor. The general
assembly wishes to ensure that the repossessor is bonded or that the secured party or assignee is
held responsible at law as a principal under the general principles of agency law for the actions
of a repossessor who is acting at the behest of the creditor in the event that no bond has been
posted.
(b)  A secured party or such party's assignee who wishes to contract with a person to
recover or take possession of collateral upon default, including a motor vehicle repossessed
pursuant to section 42-6-146, C.R.S., shall contract to recover or take possession of collateral
only with a person who is bonded for property damage to or conversion of such collateral in the
amount of at least fifty thousand dollars. Such bond shall be filed with and drawn in favor of the
attorney general of the state of Colorado for use of the people of the state of Colorado, and shall
be revocable only with the written consent of the attorney general pursuant to rules promulgated
by the office of the attorney general. The office of the attorney general may charge a fee to be
paid by the person filing such bond in order to cover the direct and indirect costs incurred by
such office in fulfilling its duties under the provisions of this section.
(c)  A secured party or secured party's assignee who employs or contracts with a person
who has not complied with the requirements specified in subsection (b) of this section shall be
liable as principal for the actions of any person the secured party or assignee employs or
contracts with to recover or take possession of the collateral after default as provided in section
4-9-609 in the same manner as if such person were the agent of the secured party or assignee,
whether or not such person has been or may be deemed to be acting as an independent contractor
in law.
(d)  A repossessor shall not engage in repossessing, recovering, or removing collateral or
personal property on behalf of a secured creditor or assignee without first disclosing to such
secured creditor or assignee whether such repossessor is bonded pursuant to this article. Any
person who fails to disclose or misrepresents to a secured party such person's bonded status or
fails to file such bond with the attorney general shall be in violation of the "Colorado Consumer
Protection Act", article 1 of title 6, C.R.S., and shall be subject to remedies or penalties or both
pursuant to said article.
(e)  Any person who knowingly falsifies a repossessor bond application or misrepresents
information contained therein commits a class 2 misdemeanor and shall be punished as provided
in section 18-1.3-501.
Colorado Revised Statutes 2024 Page 334 of  368 Uncertified Printout
(f)  All moneys collected by the attorney general pursuant to this section shall be
transmitted to the state treasurer, who shall credit the same to the general fund.
(g)  Notwithstanding any provision by contract or common law, in exercising its rights
after default, a secured party or lessor taking possession of a motor vehicle may not disable or
render unusable any computer program or other similar device embedded in the motor vehicle if
immediate injury to any person or property is a reasonably foreseeable consequence of such
action. Any secured party or lessor who disables or renders unusable such a computer program
or other similar device in such circumstances shall be liable in accordance with applicable rules
of law to any person who sustains an injury to person or property as a reasonably foreseeable
result of the secured party's or lessor's action.
Source: L. 2001: Entire article R&RE, p. 1422, § 1, effective July 1. L. 2002: (g) added,
p. 939, § 10, effective August 7; (e) amended, p. 1465, § 10, effective October 1. L. 2021: (e)
amended, (SB 21-271), ch. 462, p. 3133, § 53, effective March 1, 2022.
Editor's note - Colorado legislative change: Colorado added this section.
Cross references: For the legislative declaration contained in the 2002 act amending
subsection (e), see section 1 of chapter 318, Session Laws of Colorado 2002.
PART 7
TRANSITION
4-9-701.  Effective date. This act takes effect on July 1, 2001. References in this part 7
to "this act" refer to the repealed and reenacted article 9 of this title as contained in Senate Bill
01-240, enacted at the first regular session of the sixty-third general assembly. References in this
part 7 to "former article 9" are to article 9 of this title as in effect immediately before July 1,
2001.
Source: L. 2001: Entire article R&RE, p. 1423, § 1, effective July 1.
Editor's note - Colorado legislative change: The uniform act (e) states: "This act takes
effect on July 1, 2001."
4-9-702.  Saving clause. (a)  Except as otherwise provided in this part 7, this act applies
to a transaction or lien within its scope, even if the transaction or lien was entered into or created
before July 1, 2001.
(b)  Except as otherwise provided in subsection (c) of this section and sections 4-9-703 to
4-9-710:
(1)  Transactions and liens that were not governed by former article 9, were validly
entered into or created before July 1, 2001, and would be subject to this act if they had been
entered into or created on or after July 1, 2001, and the rights, duties, and interests flowing from
those transactions and liens remain valid on or after July 1, 2001; and
Colorado Revised Statutes 2024 Page 335 of  368 Uncertified Printout
(2)  The transactions and liens may be terminated, completed, consummated, and
enforced as required or permitted by this act or by the law that otherwise would apply if this act
had not taken effect.
(c)  This act does not affect an action, case, or proceeding commenced before July 1,
2001.
Source: L. 2001: Entire article R&RE, p. 1423, § 1, effective July 1. L. 2002: IP(b)
amended, p. 940, § 11, effective August 7.
4-9-703.  Security interest perfected before effective date. (a)  A security interest that
is enforceable immediately before July 1, 2001, and would have priority over the rights of a
person that becomes a lien creditor at that time is a perfected security interest under this act if,
on July 1, 2001, the applicable requirements for enforceability and perfection under this act are
satisfied without further action.
(b)  Except as otherwise provided in section 4-9-705, if, immediately before July 1, 2001,
a security interest is enforceable and would have priority over the rights of a person that
becomes a lien creditor at that time, but the applicable requirements for enforceability or
perfection under this act are not satisfied on July 1, 2001, the security interest:
(1)  Is a perfected security interest for one year after July 1, 2001;
(2)  Remains enforceable after June 30, 2002, only if the security interest becomes
enforceable under section 4-9-203 before July 1, 2002; and
(3)  Remains perfected after June 30, 2002, only if the applicable requirements for
perfection under this act are satisfied before July 1, 2002.
(c)  Notwithstanding subsections (a) and (b) of this section, a lien, pledge, or security
interest granted by a governmental unit prior to July 1, 2001, that is enforceable immediately
before July 1, 2001, and that would have priority over the rights of a person that becomes a lien
creditor at that time, shall remain enforceable and continue to have such priority on or after July
1, 2001.
Source: L. 2001: Entire article R&RE, p. 1423, § 1, effective July 1.
Editor's note - Colorado legislative change: Colorado added subsection (c).
4-9-704.  Security interest unperfected before effective date. A security interest that is
enforceable immediately before July 1, 2001, but that would be subordinate to the rights of a
person that becomes a lien creditor at that time:
(1)  Remains an enforceable security interest for one year after July 1, 2001;
(2)  Remains enforceable after June 30, 2002, only if the security interest becomes
enforceable under section 4-9-203 on or before June 30, 2002; and
(3)  Becomes perfected:
(A)  Without further action, on July 1, 2001, if the applicable requirements for perfection
under this act are satisfied on or before July 1, 2001; or
(B)  When the applicable requirements for perfection are satisfied if the requirements are
satisfied after July 1, 2001.
Colorado Revised Statutes 2024 Page 336 of  368 Uncertified Printout
Source: L. 2001: Entire article R&RE, p. 1424, § 1, effective July 1.
4-9-705.  Effectiveness of action taken before effective date. (a)  If action, other than
the filing of a financing statement, is taken before July 1, 2001, and the action would have
resulted in priority of a security interest over the rights of a person that becomes a lien creditor
had the security interest become enforceable before July 1, 2001, the action is effective to perfect
a security interest that attaches under this act on or before June 30, 2002. An attached security
interest becomes unperfected on July 1, 2002, unless the security interest becomes a perfected
security interest under this act on or before June 30, 2002.
(b)  The filing of a financing statement before July 1, 2001, is effective to perfect a
security interest to the extent the filing would satisfy the applicable requirements for perfection
under this act.
(c)  This act does not render ineffective an effective financing statement that, before July
1, 2001, is filed and satisfies the applicable requirements for perfection under the law of the
jurisdiction governing perfection as provided in former section 4-9-103. However, except as
otherwise provided in subsections (d) and (e) of this section and section 4-9-706, the financing
statement ceases to be effective at the earlier of:
(1)  The time the financing statement would have ceased to be effective under the law of
the jurisdiction in which it is filed; or
(2)  June 30, 2006.
(d)  The filing of a continuation statement after July 1, 2001, does not continue the
effectiveness of the financing statement filed before said date. However, upon the timely filing
of a continuation statement after July 1, 2001, and in accordance with the law of the jurisdiction
governing perfection as provided in part 3 of this article, the effectiveness of a financing
statement filed in the same office in that jurisdiction before said date continues for the period
provided by the law of that jurisdiction.
(e)  Paragraph (2) of subsection (c) of this section applies to a financing statement that,
before July 1, 2001, is filed against a transmitting utility and satisfies the applicable
requirements for perfection under the law of the jurisdiction governing perfection as provided in
former section 4-9-103 only to the extent that part 3 of this article provides that the law of a
jurisdiction other than the jurisdiction in which the financing statement is filed governs
perfection of a security interest in collateral covered by the financing statement.
(f)  A financing statement that includes a financing statement filed before July 1, 2001,
and a continuation statement filed after said date is effective only to the extent that it satisfies the
requirements of part 5 of this article for an initial financing statement.
Source: L. 2001: Entire article R&RE, p. 1424, § 1, effective July 1.
4-9-706.  When initial financing statement suffices to continue effectiveness of
financing statement. (a)  The filing of an initial financing statement in the office specified in
section 4-9-501 continues the effectiveness of a financing statement filed before July 1, 2001, if:
(1)  The filing of an initial financing statement in that office would be effective to perfect
a security interest under this act;
(2)  The pre-effective-date financing statement was filed in an office in another state,
another office in this state, or in the office of any clerk and recorder in this state; and
Colorado Revised Statutes 2024 Page 337 of  368 Uncertified Printout
(3)  The initial financing statement satisfies subsection (c) of this section.
(b)  The filing of an initial financing statement under subsection (a) of this section
continues the effectiveness of the pre-effective-date financing statement:
(1)  If the initial financing statement is filed before July 1, 2001, for the period provided
in former section 4-9-403 with respect to a financing statement; and
(2)  If the initial financing statement is filed after July 1, 2001, for the period provided in
section 4-9-515 with respect to an initial financing statement.
(c)  To be effective for purposes of subsection (a) of this section, an initial financing
statement must:
(1)  Satisfy the requirements of part 5 of this article for an initial financing statement;
(2)  Identify the pre-effective-date financing statement by indicating the office in which
the financing statement was filed and providing the dates of filing and file numbers, if any, of the
financing statement and of the most recent continuation statement filed with respect to the
financing statement; and
(3)  Indicate that the pre-effective-date financing statement remains effective.
Source: L. 2001: Entire article R&RE, p. 1425, § 1, effective July 1. L. 2002: (a)(2)
amended, p. 940, § 12, effective August 7.
4-9-707.  Amendment of pre-effective-date financing statement. (a)  As used in this
part 7, "pre-effective-date financing statement" means a financing statement filed before July 1,
2001.
(b)  After July 1, 2001, a person may add or delete collateral covered by, continue or
terminate the effectiveness of, or otherwise amend the information provided in, a pre-effective-
date financing statement only in accordance with the law of the jurisdiction governing perfection
as provided in part 3 of this article. However, the effectiveness of a pre-effective-date financing
statement also may be terminated in accordance with the law of the jurisdiction in which the
financing statement is filed.
(c)  Except as otherwise provided in subsection (d) of this section, if the law of this state
governs perfection of a security interest, the information in a pre-effective-date financing
statement may be amended after July 1, 2001, only if:
(1)  The pre-effective-date financing statement and an amendment are filed in the office
specified in section 4-9-501;
(2)  An amendment is filed in the office specified in section 4-9-501 concurrently with,
or after the filing in that office of, an initial financing statement that satisfies section 4-9-706 (c);
or
(3)  An initial financing statement that provides the information as amended and satisfies
section 4-9-706 (c) is filed in the office specified in section 4-9-501.
(d)  If the law of this state governs perfection of a security interest, the effectiveness of a
pre-effective-date financing statement may be continued only under section 4-9-705 (d) and (f)
or 4-9-706.
(e)  Whether or not the law of this state governs perfection of a security interest, the
effectiveness of a pre-effective-date financing statement filed in this state may be terminated
after July 1, 2001, by filing a termination statement in the office in which the pre-effective date
financing statement is filed, unless an initial financing statement that satisfies section 4-9-706 (c)
Colorado Revised Statutes 2024 Page 338 of  368 Uncertified Printout
has been filed in the office specified by the law of the jurisdiction governing perfection as
provided in part 3 of this article as the office in which to file a financing statement.
Source: L. 2001: Entire article R&RE, p. 1426, § 1, effective July 1.
Editor's note - Colorado legislative change: Colorado added this section; the uniform
act's section 707 is codified at section 4-9-708.
4-9-708.  Persons entitled to file initial financing statement or continuation
statement. A person may file an initial financing statement or a continuation statement under
this part 7 if:
(1)  The secured party of record authorizes the filing; and
(2)  The filing is necessary under this part 7:
(A)  To continue the effectiveness of a financing statement filed before July 1, 2001; or
(B)  To perfect or continue the perfection of a security interest.
Source: L. 2001: Entire article R&RE, p. 1427, § 1, effective July 1.
Editor's note - Colorado legislative change: The uniform act codified this section as
section 707.
4-9-709.  Priority. (a)  This act determines the priority of conflicting claims to collateral.
However, if the relative priorities of the claims were established before July 1, 2001, former
article 9 determines priority.
(b)  For purposes of section 4-9-322 (a), the priority of a security interest that becomes
enforceable under section 4-9-203 of this act dates from July 1, 2001, if the security interest is
perfected under this act by the filing of a financing statement before said date which would not
have been effective to perfect the security interest under former article 9. This subsection (b)
does not apply to conflicting security interests each of which is perfected by the filing of such a
financing statement.
Source: L. 2001: Entire article R&RE, p. 1427, § 1, effective July 1.
Editor's note - Colorado legislative change: The uniform act codified this section as
section 708.
4-9-710.  Effectiveness of filing in clerk and recorders' offices. Except as provided in
this section, a pre-effective-date financing statement filed with respect to a security interest in
the office of any clerk and recorder in this state shall be treated as if it had been filed in the
office of the secretary of state. The preceding sentence does not apply to a financing statement to
the extent that the financing statement:
(1)  Covers timber to be cut or as-extracted collateral; or
(2)  Was filed as a fixture filing.
Source: L. 2002: Entire section added, p. 940, § 13, effective August 7.
Colorado Revised Statutes 2024 Page 339 of  368 Uncertified Printout
PART 8
TRANSITION PROVISIONS FOR 2010 AMENDMENTS
4-9-801.  Effective date. House Bill 12-1262, enacted in 2012, takes effect on July 1,
2013.
Source: L. 2012: Entire part added, (HB 12-1262), ch. 170, p. 604, § 16, effective July 1,
2013.
4-9-802.  Saving clause. (a)  Except as otherwise provided in this part 8, House Bill 12-
1262, enacted in 2012, applies to a transaction or lien within its scope even if the transaction or
lien was entered into or created before July 1, 2013.
(b)  House Bill 12-1262, enacted in 2012, does not affect an action, case, or proceeding
commenced before July 1, 2013.
Source: L. 2012: Entire part added, (HB 12-1262), ch. 170, p. 605, § 16, effective July 1,
2013.
4-9-803.  Security interest perfected before effective date. (a)  A security interest that
is a perfected security interest immediately before July 1, 2013, is a perfected security interest
under this article, as amended, if, when House Bill 12-1262, enacted in 2012, takes effect, the
applicable requirements for attachment and perfection under this article, as amended by House
Bill 12-1262, enacted in 2012, are satisfied without further action.
(b)  Except as otherwise provided in section 4-9-805, which controls with respect to
security interests perfected by the filing of a financing statement pursuant to part 5 of this article
as it existed before July 1, 2013, if, immediately before July 1, 2013, a security interest is a
perfected security interest but the applicable requirements for perfection under this article, as
amended by House Bill 12-1262, enacted in 2012, are not satisfied by July 1, 2013, the security
interest remains perfected thereafter only if the applicable requirements for perfection under this
article, as amended by House Bill 12-1262, enacted in 2012, are satisfied within one year after
July 1, 2013.
Source: L. 2012: Entire part added, (HB 12-1262), ch. 170, p. 605, § 16, effective July 1,
2013.
4-9-804.  Security interest unperfected before effective date. (a)  A security interest
that is an unperfected security interest immediately before July 1, 2013, becomes a perfected
security interest:
(1)  Without further action, on July 1, 2013, if the applicable requirements for perfection
under this article, as amended by House Bill 12-1262, enacted in 2012, are satisfied on or before
July 1, 2013; or
(2)  When the applicable requirements for perfection are satisfied if the requirements are
satisfied after July 1, 2013.
Colorado Revised Statutes 2024 Page 340 of  368 Uncertified Printout
Source: L. 2012: Entire part added, (HB 12-1262), ch. 170, p. 605, § 16, effective July 1,
2013.
4-9-805.  Effectiveness of action taken before effective date. (a)  The filing of a
financing statement before July 1, 2013, is effective to perfect a security interest to the extent the
filing would satisfy the applicable requirements for perfection under this article, as amended by
House Bill 12-1262, enacted in 2012.
(b)  House Bill 12-1262, enacted in 2012, does not render seriously misleading or
otherwise ineffective an effective financing statement that, before July 1, 2013, was filed and
satisfied the applicable requirements for perfection under the law of the jurisdiction governing
perfection as provided in this article as it existed before July 1, 2013. However, except as
otherwise provided in subsections (c) and (d) of this section and section 4-9-806, the financing
statement ceases to be effective:
(1)  If the financing statement was filed in this state, at the time the financing statement
would have ceased to be effective had House Bill 12-1262, enacted in 2012, not taken effect; or
(2)  If the financing statement was filed in another jurisdiction, at the earlier of:
(A)  The time the financing statement would have ceased to be effective under the law of
that jurisdiction; or
(B)  June 30, 2018.
(c)  The timely filing of a continuation statement on or after July 1, 2013, in accordance
with the law of the jurisdiction governing perfection as provided in this article, as amended by
House Bill 12-1262, enacted in 2012, continues the effectiveness of a financing statement filed
in the same office in that jurisdiction before July 1, 2013, for the period provided by the law of
that jurisdiction, but only to the extent the financing statement, including any amendment filed
before or, if permitted by the rules of the filing office, as part of, the continuation statement,
satisfies the requirements of part 5 of this article, as amended by House Bill 12-1262, enacted in
2012, for an initial financing statement. Except as provided in the preceding sentence, the filing
of a continuation statement on or after July 1, 2013, does not continue the effectiveness of a
financing statement filed before July 1, 2013.
(d)  Subparagraph (B) of paragraph (2) of subsection (b) of this section applies to a
financing statement that, before July 1, 2013, is filed against a transmitting utility and satisfies
the applicable requirements for perfection under the law of the jurisdiction governing perfection
as provided in this article as it existed before July 1, 2013, only to the extent that this article, as
amended by House Bill 12-1262, enacted in 2012, provides that the law of a jurisdiction other
than the jurisdiction in which the financing statement is filed governs perfection of a security
interest in collateral covered by the financing statement.
(e)  A financing statement that includes both a financing statement filed before July 1,
2013, and a continuation statement filed on or after July 1, 2013, is effective only to the extent
that, after giving effect to any amendment filed before or, if permitted by the rules of the filing
office, as part of, the continuation statement, the financing statement satisfies the requirements
of part 5 of this article, as amended by House Bill 12-1262, enacted in 2012, for an initial
financing statement. A financing statement filed before July 1, 2013, that indicates that the
debtor is a decedent's estate indicates that the collateral is being administered by a personal
representative within the meaning of section 4-9-503 (a)(2), as amended by House Bill 12-1262,
enacted in 2012. A financing statement filed before July 1, 2013, that indicates that the debtor is
Colorado Revised Statutes 2024 Page 341 of  368 Uncertified Printout
a trust or is a trustee acting with respect to property held in trust indicates that the collateral is
held in a trust within the meaning of section 4-9-503 (a)(3), as amended by House Bill 12-1262,
enacted in 2012.
Source: L. 2012: Entire part added, (HB 12-1262), ch. 170, p. 605, § 16, effective July 1,
2013.
4-9-806.  When initial financing statement suffices to continue effectiveness of
financing statement. (a)  The filing of an initial financing statement in the office specified in
section 4-9-501 continues the effectiveness of a financing statement filed before July 1, 2013, if:
(1)  The filing of an initial financing statement in that office would be effective to perfect
a security interest under this article, as amended by House Bill 12-1262, enacted in 2012;
(2)  The pre-effective-date financing statement was filed in an office in another state; and
(3)  The initial financing statement satisfies subsection (c) of this section.
(b)  The filing of an initial financing statement under subsection (a) of this section
continues the effectiveness of the pre-effective-date financing statement:
(1)  If the initial financing statement is filed before July 1, 2013, for the period provided
in section 4-9-515, as it existed before July 1, 2013, with respect to an initial financing
statement; and
(2)  If the initial financing statement is filed after July 1, 2013, for the period provided in
section 4-9-515, as amended by House Bill 12-1262, enacted in 2012, with respect to an initial
financing statement.
(c)  To be effective for purposes of subsection (a) of this section, an initial financing
statement must:
(1)  Satisfy the requirements of part 5 of this article, as amended by House Bill 12-1262,
enacted in 2012, for an initial financing statement;
(2)  Identify the pre-effective-date financing statement by indicating the office in which
the financing statement was filed and providing the dates of filing and file numbers, if any, of the
financing statement and of the most recent continuation statement filed with respect to the
financing statement; and
(3)  Indicate that the pre-effective-date financing statement remains effective.
Source: L. 2012: Entire part added, (HB 12-1262), ch. 170, p. 607, § 16, effective July 1,
2013.
4-9-807.  Amendment of pre-effective-date financing statement. (a)  In this section,
"pre-effective-date financing statement" means a financing statement filed before July 1, 2013.
(b)  On or after July 1, 2013, a person may add or delete collateral covered by, continue
or terminate the effectiveness of, or otherwise amend the information provided in, a pre-
effective-date financing statement only in accordance with the law of the jurisdiction governing
perfection as provided in this article, as amended by House Bill 12-1262, enacted in 2012.
However, the effectiveness of a pre-effective-date financing statement also may be terminated in
accordance with the law of the jurisdiction in which the financing statement is filed.
Colorado Revised Statutes 2024 Page 342 of  368 Uncertified Printout
(c)  Except as otherwise provided in subsection (d) of this section, if the law of this state
governs perfection of a security interest, the information in a pre-effective-date financing
statement may be amended on or after July 1, 2013, only if:
(1)  The pre-effective-date financing statement and an amendment are filed in the office
specified in section 4-9-501;
(2)  An amendment is filed in the office specified in section 4-9-501 concurrently with,
or after the filing in that office of, an initial financing statement that satisfies section 4-9-806 (c);
or
(3)  An initial financing statement that provides the information as amended and satisfies
section 4-9-806 (c) is filed in the office specified in section 4-9-501.
(d)  If the law of this state governs perfection of a security interest, the effectiveness of a
pre-effective-date financing statement may be continued only under section 4-9-805 (c) and (e)
or 4-9-806.
(e)  Whether or not the law of this state governs perfection of a security interest, the
effectiveness of a pre-effective-date financing statement filed in this state may be terminated
after July 1, 2013, by filing a termination statement in the office in which the pre-effective-date
financing statement is filed, unless an initial financing statement that satisfies section 4-9-806 (c)
has been filed in the office specified by the law of the jurisdiction governing perfection as
provided in this article, as amended by House Bill 12-1262, enacted in 2012, as the office in
which to file a financing statement.
Source: L. 2012: Entire part added, (HB 12-1262), ch. 170, p. 607, § 16, effective July 1,
2013.
4-9-808.  Person entitled to file initial financing statement or continuation statement.
(a)  A person may file an initial financing statement or a continuation statement under this part 8
if:
(1)  The secured party of record authorizes the filing; and
(2)  The filing is necessary under this part 8:
(A)  To continue the effectiveness of a financing statement filed before July 1, 2013; or
(B)  To perfect or continue the perfection of a security interest.
Source: L. 2012: Entire part added, (HB 12-1262), ch. 170, p. 608, § 16, effective July 1,
2013.
4-9-809.  Priority. House Bill 12-1262, enacted in 2012, determines the priority of
conflicting claims to collateral. However, if the relative priorities of the claims were established
before July 1, 2013, this article, as it existed before July 1, 2013, determines priority.
Source: L. 2012: Entire part added, (HB 12-1262), ch. 170, p. 609, § 16, effective July 1,
2013.