C.R.S. Section 42-6-125
Release of mortgages

  • rules

(1)

Upon the payment or discharge of the undertaking secured by a mortgage on a motor or off-highway vehicle that has been filed for record under section 42-6-121, the legal holder, on a form approved by the director, shall notify the director or authorized agent of the discharge of the obligation and release of the mortgage securing the obligation and set forth in the notice the facts concerning the right of the holder to release the mortgage as the director may require by rule. The lienholder shall include in the notice of satisfaction and release a signed affirmation, noted in the certificate of title on file with the director or the authorized agent, that contains or is accompanied by a notarized declaration or a written declaration that it is made under the penalties of perjury in the second degree, as defined in section 18-8-503. Thereupon, the holder of the released mortgage shall dispose of the certificate of title as follows:

(a)

If the motor or off-highway vehicle is encumbered by a mortgage filed under section 42-6-121 after the date on which the released mortgage was filed for record, the holder of the certificate of title shall deliver the certificate to the person shown to be the holder of the mortgage noted on the title filed earliest after the filing of the released mortgage, or to the person or agent of the person shown to be the assignee or other legal holder of the mortgage, or shall mail the certificate to the mortgagee or holder at the address appearing on the mortgage. If the certificate is returned unclaimed, the holder shall mail the certificate to the director.

(b)

If it appears from an examination of the certificate of title that there are no other outstanding mortgages against the motor or off-highway vehicle upon the release of the mortgage as provided in this section, the holder of the mortgage shall deliver the certificate of title to the owner of the vehicle or shall mail the title to the owner at his or her address, and, if for any reason the certificate of title is not delivered to the owner or is returned unclaimed, the holder shall immediately mail the certificate to the director.

(c)

The director’s authorized agent shall note in the electronic record of the lien the satisfaction and release of the lien or mortgage and shall file a notice of the satisfaction and release in accordance with section 42-6-122.
(2)(a)(I) Except when a lienholder can show extenuating circumstances, within fifteen calendar days after a lien or mortgage on a motor or off-highway vehicle is paid and satisfied, a lienholder shall release the lien or mortgage as required by subsection (1) of this section.

(II)

As used in this subsection (2), “extenuating circumstances” means a situation where access to the title is impaired, making good faith compliance with this subsection (2) impossible within the time frame required by this paragraph (a). “Extenuating circumstances” does not include intentional or negligent acts by a lienholder that result in delay beyond the time frame required in this subsection (2).

(b)

Any person aggrieved by a violation of this subsection (2) may bring a civil action in a court of competent jurisdiction to bring about compliance with this subsection (2) and for any damages arising from the violation.

(3)

Mortgage or lien satisfactions may be electronically transmitted to the department’s authorized agent as authorized by rules of the director. When electronic transmission of mortgages or liens or mortgage or lien satisfactions is used, a certificate of title need not be issued until the last mortgage or lien is satisfied and a clear certificate of title is issued to the owner of the motor or off-highway vehicle under section 42-6-126.

Source: Section 42-6-125 — Release of mortgages - rules, https://leg.­colorado.­gov/sites/default/files/images/olls/crs2023-title-42.­pdf (accessed Oct. 20, 2023).

42‑6‑101
Short title
42‑6‑102
Definitions
42‑6‑103
Application
42‑6‑104
Administration - rules
42‑6‑106
Certificates of registration - plates
42‑6‑107
Certificates of title - contents - rules
42‑6‑109
Sale or transfer of vehicle - program
42‑6‑110
Certificate of title - transfer - department records - rules - definition
42‑6‑110.5
Certificates of title - arrangements for transfer of title upon death - beneficiary designation forms - definitions
42‑6‑111
Sale to dealers - certificate need not issue
42‑6‑112
Initial registration of a vehicle - dealer responsibility to timely forward certificate of title to purchaser or holder of a chattel mortgage - penalty
42‑6‑113
New vehicles - bill of sale - certificate of title - rental businesses - rules
42‑6‑114
Transfers by bequest, descent, or law
42‑6‑115
Furnishing bond for certificates
42‑6‑116
Applications for filing of certificates of title - rules
42‑6‑117
Filing of certificate
42‑6‑118
Amended certificate
42‑6‑119
Certificates for vehicles registered in other states
42‑6‑120
Security interests upon vehicles
42‑6‑121
Filing of mortgage - rules
42‑6‑122
Disposition of mortgages by agent - rules
42‑6‑123
Disposition after mortgaging
42‑6‑124
Disposition of certificates of title
42‑6‑125
Release of mortgages - rules
42‑6‑126
New certificate upon release of mortgage
42‑6‑127
Duration of lien of mortgage - extensions - rules
42‑6‑128
Validity of mortgage between parties
42‑6‑129
Second or other junior mortgages
42‑6‑130
Priority of secured interests
42‑6‑131
Mechanic’s, warehouse, and other liens
42‑6‑133
Foreign mortgages and liens
42‑6‑134
Where application for certificates of title made
42‑6‑135
Lost certificates of title
42‑6‑136
Surrender and cancellation of certificate - penalty for violation
42‑6‑136.5
Salvage title
42‑6‑137
Fees
42‑6‑138
Disposition of fees
42‑6‑139
Registration and title application - where made
42‑6‑140
Registration upon becoming resident
42‑6‑141
Director’s records to be public
42‑6‑142
Penalties
42‑6‑143
Altering or using altered certificate
42‑6‑144
False oath
42‑6‑145
Use of vehicle identification numbers in applications - rules
42‑6‑146
Repossession of motor vehicle or off-highway vehicle - owner must notify law enforcement agency - definition - penalty
42‑6‑147
Central registry - rules
42‑6‑148
Off-highway vehicles - sales
42‑6‑201
Definitions
42‑6‑202
Prohibited acts - penalty
42‑6‑204
Private civil action
42‑6‑205
Consumer protection
42‑6‑206
Disclosure requirements upon transfer of ownership of a salvage vehicle - rules - definitions
Green check means up to date. Up to date

Current through Fall 2024

§ 42-6-125’s source at colorado​.gov