C.R.S. Section 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.

(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: Section 4-9-629 — Secured party’s liability when taking possession after default - legislative declaration - fund, 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

§ 4-9-629’s source at colorado​.gov