Colorado § 4-2.5-527 Lessor's rights to dispose of goods

Colorado Statutes

§ 4-2.5-527 — Lessor's rights to dispose of goods

Colorado § 4-2.5-527

Title 04Uniform

Art.Leases

This text of Colorado § 4-2.5-527 (Lessor's rights to dispose of goods) is published on Counsel Stack Legal Research, covering Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Colo. Rev. Stat. § 4-2.5-527 (2026).

Text

(1)After a default by a lessee under the lease contract of the type described in section 4-2.5-523 (1) or 4-2.5-523 (3)(a) or after the lessor refuses to deliver or takes possession of goods (section 4-2.5-525 or 4-2.5-526), or if agreed, after other default by a lessee, the lessor may dispose of the goods concerned or the undelivered balance thereof by lease, sale, or otherwise.

(2)Except as otherwise provided with respect to damages liquidated in the lease agreement (section 4-2.5-504) or otherwise determined pursuant to agreement of the parties (sections 4-1-302 and 4-2.5-503), if the disposition is by lease agreement substantially similar to the original lease agreement and the lease agreement is made in good faith and in a commercially reasonable manner, the lessor may rec

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(1) After a default by a
lessee under the lease contract of the type described in section 4-2.5-523 (1) or 4-2.5-523 (3)(a) or after the lessor refuses to deliver or takes possession of goods
(section 4-2.5-525 or 4-2.5-526), or if agreed, after other default by a lessee, the
lessor may dispose of the goods concerned or the undelivered balance thereof by
lease, sale, or otherwise.

(2) Except as otherwise provided with respect to damages liquidated in the
lease agreement (section 4-2.5-504) or otherwise determined pursuant to
agreement of the parties (sections 4-1-302 and 4-2.5-503), if the disposition is by
lease agreement substantially similar to the original lease agreement and the lease
agreement is made in good faith and in a commercially reasonable manner, the
lessor may recover from the lessee as damages (i) accrued and unpaid rent as of
the date of the commencement of the term of the new lease agreement, (ii) the
present value, as of the same date, of the total rent for the then remaining lease
term of the original lease agreement minus the present value, as of the same date,
of the rent under the new lease agreement applicable to that period of the new
lease term that is comparable to the then remaining term of the original lease
agreement, (iii) interest on the amount computed under clause (ii) of this subsection
(2) from the date of the commencement of the term of the new lease agreement
until the date of entry of judgment at the same rate used in computing present
value, and (iv) any incidental damages allowed under section 4-2.5-530, less
expenses saved in consequence of the lessee's default.

(3) If the lessor's disposition is by lease agreement that for any reason does
not qualify for treatment under subsection (2) of this section, or is by sale or
otherwise, the lessor may recover from the lessee as if the lessor had elected not to
dispose of the goods and section 4-2.5-528 governs.

(4) A subsequent buyer or lessee who buys or leases from the lessor in good
faith for value as a result of a disposition under this section takes the goods free of
the original lease contract and any rights of the original lessee even though the
lessor fails to comply with one or more of the requirements of this article.

(5) The lessor is not accountable to the lessee for any profit made on any
disposition. A lessee who has rightfully rejected or justifiably revoked acceptance
shall account to the lessor for any excess over the amount of the lessee's security
interest (section 4-2.5-508 (5)).