C.R.S. Section 42-7-304
Custody and disposition of security

(1)

Security deposited in compliance with the requirements of section 42-7-301 shall be placed by the director in the custody of the state treasurer and shall be applied only to the payment of a judgment rendered against the person on whose behalf the deposit was made, for damages arising out of the accident in question in an action at law begun not later than one year after the date of such accident. Such deposit or any balance thereof shall be returned to the depositor or the depositor’s personal representative, or the person designated by either of them, when evidence satisfactory to the director has been filed with the director that there has been a release from liability, or a final adjudication of nonliability, or a warrant for confession of judgment, or a duly acknowledged agreement, or whenever, after the expiration of one year from the date of the accident, or within one year after the date of deposit of any security, the director shall be given reasonable evidence that there is no such action pending and no judgment rendered in such action left unpaid.

(2)

The director may reduce the amount of security ordered in any case within six months after the date of the accident if, in the director’s judgment, the amount originally ordered is excessive. In case the security originally ordered has been deposited, the excess deposit over the reduced amount ordered shall be returned immediately to the depositor or the depositor’s personal representative, regardless of any other provisions of this article.

(3)

Intentionally left blank —Ed.

(a)

It is the duty of any person having a claim against the security deposited under the provisions of section 42-7-301, on or before the expiration of one year from the date of the accident, to notify the director in writing under oath that there has been a release of liability, or a final adjudication of nonliability, or a warrant for confession of judgment, or a duly acknowledged agreement or that there is no action pending and no judgment rendered in any such action left unpaid or of any action taken on said claim which has not been finally determined.

(b)

If any claimant fails to notify the director in writing under oath as provided in paragraph (a) of this subsection (3), the director shall notify the state treasurer to that effect and the state treasurer may, upon receipt of said notification, void the obligation provided for in section 42-7-301 and release and return the security to the depositor. The state treasurer shall then be fully and completely released from any further obligation or liability in relation thereto.

(c)

Where said depositor cannot be located, the state treasurer shall notify the depositor by registered or certified mail, return receipt requested, addressed to the last-known address of said depositor, advising said depositor that the depositor must either appear and claim the security deposited within thirty days from the date of receipt of said letter, or said security will escheat to the general fund of the state of Colorado. If said depositor does not appear within the thirty-day period, the state treasurer shall void the obligation as provided in section 42-7-301, and the security shall escheat to the general fund of the state of Colorado, relieving the state treasurer of any further obligation or liability in relation thereto.

Source: Section 42-7-304 — Custody and disposition of security, https://leg.­colorado.­gov/sites/default/files/images/olls/crs2023-title-42.­pdf (accessed Oct. 20, 2023).

42‑7‑101
Short title 42‑7‑102
Legislative declaration 42‑7‑103
Definitions 42‑7‑201
Director to administer article 42‑7‑301
Security and proof of financial responsibility for the future required under certain circumstances 42‑7‑301.5
Proof of financial responsibility 42‑7‑302
Exemptions from requirement of filing security and proof of financial responsibility for the future 42‑7‑303
Duration of suspension 42‑7‑304
Custody and disposition of security 42‑7‑401
Proof required on judgments 42‑7‑402
Suspension, duration, bankruptcy 42‑7‑403
Sufficiency of payments 42‑7‑404
Payment of judgment in installments 42‑7‑405
Suspension upon second judgment 42‑7‑406
Proof required under certain conditions 42‑7‑407
Duty of courts to report 42‑7‑408
Proof of financial responsibility - methods of giving proof - duration - exception 42‑7‑409
Proof for member of family or chauffeur 42‑7‑410
Certificate for insurance policy 42‑7‑411
Restrictions in certain type of policy 42‑7‑412
Certificate furnished by nonresident 42‑7‑413
Motor vehicle liability policy 42‑7‑414
Requirements to be complied with 42‑7‑415
When insurance carrier to issue certificate 42‑7‑416
Notice required upon cancellation 42‑7‑417
Article not to affect other policies 42‑7‑418
Money - securities for financial responsibility 42‑7‑419
Substitution of proof 42‑7‑420
Failure of proof - other proof 42‑7‑421
When director may release proof of financial responsibility 42‑7‑422
No proof when proof required 42‑7‑501
Self-insurers 42‑7‑502
Action against nonresident - reciprocity with other states 42‑7‑503
Director to furnish operating record 42‑7‑504
Matters not to be evidence in litigation 42‑7‑505
Forging ability to respond in damages 42‑7‑505.5
Motor carrier indemnity agreements void - choice of law for transportation contracts 42‑7‑506
Surrender of license 42‑7‑507
Penalty 42‑7‑508
No repeal of motor vehicle laws 42‑7‑509
Article does not prevent other process 42‑7‑510
Insurance or bond required 42‑7‑601
Short title 42‑7‑602
Uninsured motorist identification database program - creation 42‑7‑603
Definitions 42‑7‑604
Motorist insurance identification database program - creation - administration - selection of designated agent - legislative declaration 42‑7‑606
Disclosure of insurance information - penalty 42‑7‑607
Part 6 not to supersede other provisions 42‑7‑609
Report
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Current through Fall 2024

§ 42-7-304’s source at colorado​.gov