§ 4-2.5-308 — Special rights of creditors

Colorado § 4-2.5-308

• Jurisdiction: Colorado
• Title 04: Uniform
• Art.: Leases

Text

(1) A creditor of a lessor in
possession of goods subject to a lease contract may treat the lease contract as void
if as against the creditor retention of possession by the lessor is fraudulent under
any statute or rule of law, but retention of possession in good faith and current
course of trade by the lessor for a commercially reasonable time after the lease
contract becomes enforceable is not fraudulent.

(2) Nothing in this article impairs the rights of creditors of a lessor if the
lease contract (a) becomes enforceable, not in current course of trade but in
satisfaction of or as security for a pre-existing claim for money, security, or the like,
and (b) is made under circumstances which under any statute or rule of law apart
from this article would constitute the transaction a fraudulent transfer or voidable
preference.

(3) A creditor of a seller may treat a sale or an identification of goods to a
contract for sale as void if as against the creditor retention of possession by the
seller is fraudulent under any statute or rule of law, but retention of possession of
the goods pursuant to a lease contract entered into by the seller as lessee and the
buyer as lessor in connection with the sale or identification of the goods is not
fraudulent if the buyer bought for value and in good faith.

Legislative History

Source: L. 91: Entire article added, p. 293, � 1, effective July 1, 1992.