C.R.S. Section 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

(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: Section 4-9-620 — Acceptance of collateral in full or partial satisfaction of obligation - compulsory disposition of collateral, https://leg.­colorado.­gov/sites/default/files/images/olls/crs2023-title-04.­pdf (accessed Oct. 20, 2023).

4‑9‑101
Short title 4‑9‑102
Definitions and index of definitions 4‑9‑103
Purchase-money security interest - application of payments - burden of establishing - definitions 4‑9‑104
Control of deposit account 4‑9‑105
Control of electronic copy of record evidencing chattel paper 4‑9‑106
Control of investment property 4‑9‑107
Control of letter-of-credit right 4‑9‑107.5
Control of controllable electronic record, controllable account, or controllable payment intangible 4‑9‑108
Sufficiency of description 4‑9‑109
Scope 4‑9‑110
5 4‑9‑201
General effectiveness of security agreement 4‑9‑202
Title to collateral immaterial 4‑9‑203
Attachment and enforceability of security interest 4‑9‑204
After-acquired property - future advances 4‑9‑205
Use or disposition of collateral permissible 4‑9‑206
Security interest arising in purchase or delivery of financial asset 4‑9‑207
Rights and duties of secured party having possession or control of collateral 4‑9‑208
Additional duties of secured party having control of collateral 4‑9‑209
Duties of secured party if account debtor has been notified of assignment 4‑9‑210
Request for accounting - request regarding list of collateral or statement of account - definitions 4‑9‑301
Law governing perfection and priority of security interests 4‑9‑302
Law governing perfection and priority of agricultural liens 4‑9‑303
Law governing perfection and priority of security interests in goods covered by a certificate of title 4‑9‑304
Law governing perfection and priority of security interests in deposit accounts 4‑9‑305
Law governing perfection and priority of security interests in investment property 4‑9‑306
Law governing perfection and priority of security interests in letter-of-credit rights 4‑9‑306.5
Law governing perfection and priority of security interests in chattel paper 4‑9‑306.7
Law governing perfection and priority of security interests in controllable accounts, controllable electronic records, and controllable payment intangibles 4‑9‑307
Location of debtor 4‑9‑308
When security interest or agricultural lien is perfected - continuity of perfection 4‑9‑309
Security interest perfected upon attachment 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 4‑9‑311
Perfection of security interests in property subject to certain statutes, regulations, and treaties 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 4‑9‑313
When possession by or delivery to secured party perfects security interest without filing 4‑9‑314
Perfection by control 4‑9‑314.5
Perfection by possession and control of chattel paper 4‑9‑315
Secured party’s rights on disposition of collateral and in proceeds 4‑9‑316
Continued perfection of security interest following change in governing law 4‑9‑317
Interests that take priority over or take free of security interest or agricultural lien 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 4‑9‑319
Rights and title of consignee with respect to creditors and purchasers 4‑9‑320
Buyer of goods 4‑9‑321
Licensee of general intangible and lessee of goods in ordinary course of business 4‑9‑322
Priorities among conflicting security interests in and agricultural liens on same collateral 4‑9‑323
Future advances 4‑9‑324
Priority of purchase-money security interests 4‑9‑325
Priority of security interests in transferred collateral 4‑9‑326
Priority of security interests created by new debtor 4‑9‑326.5
Priority of security interest in controllable account, controllable electronic record, and controllable payment intangible 4‑9‑327
Priority of security interests in deposit account 4‑9‑328
Priority of security interests in investment property 4‑9‑329
Priority of security interests in letter-of-credit right 4‑9‑330
Priority of purchaser of chattel paper or instrument 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 under articles 8 and 12 4‑9‑332
Transfer of money - transfer of funds from deposit account 4‑9‑333
Priority of certain liens arising by operation of law 4‑9‑334
Priority of security interests in fixtures and crops 4‑9‑335
Accessions 4‑9‑336
Commingled goods 4‑9‑337
Priority of security interests in goods covered by certificate of title 4‑9‑338
Priority of security interest or agricultural lien perfected by filed financing statement providing certain incorrect information 4‑9‑339
Priority subject to subordination 4‑9‑340
Effectiveness of right of recoupment or set-off against deposit account 4‑9‑341
Bank’s rights and duties with respect to deposit account 4‑9‑342
Bank’s right to refuse to enter into or disclose existence of control agreement 4‑9‑401
Alienability of debtor’s rights 4‑9‑402
Secured party not obligated on contract of debtor or in tort 4‑9‑403
Agreement not to assert defenses against assignee 4‑9‑404
Rights acquired by assignee 4‑9‑405
Modification of assigned contract 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 4‑9‑407
Restrictions on creation or enforcement of security interest in leasehold interest or in lessor’s residual interest 4‑9‑408
Restrictions on assignment of promissory notes, health-care-insurance receivables, and certain general intangibles ineffective 4‑9‑409
Restrictions on assignment of letter-of-credit rights ineffective 4‑9‑501
Filing office 4‑9‑502
Contents of financing statement - record of mortgage as financing statement - time of filing financing statement 4‑9‑503
Name of debtor and secured party 4‑9‑504
Indication of collateral 4‑9‑505
Filing and compliance with other statutes and treaties for consignments, leases, other bailments, and other transactions 4‑9‑506
Effect of errors or omissions 4‑9‑507
Effect of certain events on effectiveness of financing statement 4‑9‑508
Effectiveness of financing statement if new debtor becomes bound by security agreement 4‑9‑509
Persons entitled to file a record 4‑9‑510
Effectiveness of filed record 4‑9‑511
Secured party of record 4‑9‑512
Amendment of financing statement 4‑9‑513
Termination statement 4‑9‑514
Assignment of powers of secured party of record 4‑9‑515
Duration and effectiveness of financing statement - effect of lapsed financing statement 4‑9‑516
What constitutes filing - effectiveness of filing 4‑9‑517
Effect of indexing errors 4‑9‑518
Claim concerning inaccurate or wrongfully filed record 4‑9‑519
Numbering, maintaining, and indexing records - communicating information provided in records 4‑9‑520
Acceptance and refusal to accept record 4‑9‑521
Uniform form of written financing statement and amendment 4‑9‑522
Maintenance and destruction of records 4‑9‑523
Information from filing office - sale or license of records 4‑9‑524
Delay by filing office 4‑9‑525
Fees 4‑9‑526
Filing-office rules 4‑9‑528
Refiling required 4‑9‑529
Electronic and other filings 4‑9‑531
Removal of social security numbers from financing statements in the custody of the secretary of state 4‑9‑601
Rights after default - judicial enforcement - consignor or buyer of accounts, chattel paper, payment intangibles, or promissory notes 4‑9‑602
Waiver and variance of rights and duties 4‑9‑603
Agreement on standards concerning rights and duties 4‑9‑604
Procedure if security agreement covers real property or fixtures 4‑9‑605
Unknown debtor or secondary obligor 4‑9‑606
Time of default for agricultural lien 4‑9‑607
Collection and enforcement by secured party 4‑9‑608
Application of proceeds of collection or enforcement - liability for deficiency and right to surplus 4‑9‑609
Secured party’s right to take possession after default 4‑9‑610
Disposition of collateral after default 4‑9‑611
Notification before disposition of collateral - definition 4‑9‑612
Timeliness of notification before disposition of collateral 4‑9‑613
Contents and form of notification before disposition of collateral: general 4‑9‑614
Contents and form of notification before disposition of collateral: consumer-goods transaction 4‑9‑615
Application of proceeds of disposition 4‑9‑616
Explanation of calculation of surplus or deficiency - definitions 4‑9‑617
Rights of transferee of collateral 4‑9‑618
Rights and duties of certain secondary obligors 4‑9‑619
Transfer of record or legal title 4‑9‑620
Acceptance of collateral in full or partial satisfaction of obligation - compulsory disposition of collateral 4‑9‑621
Notification of proposal to accept collateral 4‑9‑622
Effect of acceptance of collateral 4‑9‑623
Right to redeem collateral 4‑9‑624
Waiver 4‑9‑625
Remedies for secured party’s failure to comply with article 4‑9‑626
Action in which deficiency or surplus is in issue 4‑9‑627
Determination of whether conduct was commercially reasonable 4‑9‑628
Nonliability and limitation on liability of secured party - liability of secondary obligor 4‑9‑629
Secured party’s liability when taking possession after default - legislative declaration - fund 4‑9‑701
Effective date 4‑9‑702
Saving clause 4‑9‑703
Security interest perfected before effective date 4‑9‑704
Security interest unperfected before effective date 4‑9‑705
Effectiveness of action taken before effective date 4‑9‑706
When initial financing statement suffices to continue effectiveness of financing statement 4‑9‑707
Amendment of pre-effective-date financing statement 4‑9‑708
Persons entitled to file initial financing statement or continuation statement 4‑9‑709
Priority 4‑9‑710
Effectiveness of filing in clerk and recorders’ offices 4‑9‑801
Effective date 4‑9‑802
Saving clause 4‑9‑803
Security interest perfected before effective date 4‑9‑804
Security interest unperfected before effective date 4‑9‑805
Effectiveness of action taken before effective date 4‑9‑806
When initial financing statement suffices to continue effectiveness of financing statement 4‑9‑807
Amendment of pre-effective-date financing statement 4‑9‑808
Person entitled to file initial financing statement or continuation statement 4‑9‑809
Priority
Green check means up to date. Up to date

Current through Fall 2024

§ 4-9-620’s source at colorado​.gov