Colorado § 4-9-205 Use or disposition of collateral permissible

Colorado Statutes

§ 4-9-205 — Use or disposition of collateral permissible

Colorado § 4-9-205

Title 04Uniform

Art.Secured Transactions

This text of Colorado § 4-9-205 (Use or disposition of collateral permissible) 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. § 4-9-205 (2026).

Text

(a)A security interest is not invalid or fraudulent against creditors solely because:

(1)The debtor has the right or ability to:

(A)Use, commingle, or dispose of all or part of the collateral, including returned or repossessed goods;

(B)Collect, compromise, enforce, or otherwise deal with collateral;

(C)Accept the return of collateral or make repossessions; or

(D)Use, commingle, or dispose of proceeds; or

(2)The secured party fails to require the debtor to account for proceeds or replace collateral.

(b)This section does not relax the requirements of possession if attachment, perfection, or enforcement of a security interest depends upon possession of the collateral by the secured party.

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(a) A security interest
is not invalid or fraudulent against creditors solely because:

(1) The debtor has the right or ability to:

(A) Use, commingle, or dispose of all or part of the collateral, including
returned or repossessed goods;

(B) Collect, compromise, enforce, or otherwise deal with collateral;

(C) Accept the return of collateral or make repossessions; or

(D) Use, commingle, or dispose of proceeds; or

(2) The secured party fails to require the debtor to account for proceeds or
replace collateral.

(b) This section does not relax the requirements of possession if attachment,
perfection, or enforcement of a security interest depends upon possession of the
collateral by the secured party.