Colorado § 4-9-607 Collection and enforcement by secured party

Colorado Statutes

§ 4-9-607 — Collection and enforcement by secured party

Colorado § 4-9-607

Title 04Uniform

Art.Secured Transactions

This text of Colorado § 4-9-607 (Collection and enforcement by secured party) 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. § 4-9-607 (2026).

Text

(a)If so agreed, and in any event after default, a secured party:

(1)May notify an account debtor or other person obligated on collateral to make payment or otherwise render performance to or for the benefit of the secured party;

(2)May take any proceeds to which the secured party is entitled under section 4-9-315;

(3)May enforce the obligations of an account debtor or other person obligated on collateral and exercise the rights of the debtor with respect to the obligation of the account debtor or other person obligated on collateral to make payment or otherwise render performance to the debtor, and with respect to any property that secures the obligations of the account debtor or other person obligated on the collateral;

(4)If it holds a security interest in a deposit ac

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(a) If so agreed,
and in any event after default, a secured party:

(1) May notify an account debtor or other person obligated on collateral to
make payment or otherwise render performance to or for the benefit of the secured
party;

(2) May take any proceeds to which the secured party is entitled under
section 4-9-315;

(3) May enforce the obligations of an account debtor or other person
obligated on collateral and exercise the rights of the debtor with respect to the
obligation of the account debtor or other person obligated on collateral to make
payment or otherwise render performance to the debtor, and with respect to any
property that secures the obligations of the account debtor or other person
obligated on the collateral;

(4) If it holds a security interest in a deposit account perfected by control
under section 4-9-104 (a)(1), may apply the balance of the deposit account to the
obligation secured by the deposit account; and

(5) If it holds a security interest in a deposit account perfected by control
under section 4-9-104 (a)(2) or (3), may instruct the bank to pay the balance of the
deposit account to or for the benefit of the secured party.

(b) If necessary to enable a secured party to exercise under paragraph (3) of
subsection (a) of this section the right of a debtor to enforce a mortgage
nonjudicially, the secured party may record in the office in which a record of the
mortgage is recorded:

(1) A copy of the security agreement that creates or provides for a security
interest in the obligation secured by the mortgage; and

(2) The secured party's sworn affidavit in recordable form stating that:

(A) A default has occurred with respect to the obligation secured by the
mortgage; and

(B) The secured party is entitled to enforce the mortgage nonjudicially.

(c) A secured party shall proceed in a commercially reasonable manner if the
secured party:

(1) Undertakes to collect from or enforce an obligation of an account debtor
or other person obligated on collateral; and

(2) Is entitled to charge back uncollected collateral or otherwise to full or
limited recourse against the debtor or a secondary obligor.

(d) A secured party may deduct from the collections made pursuant to
subsection (c) of this section reasonable expenses of collection and enforcement,
including reasonable attorney's fees and reasonable legal expenses incurred by the
secured party.

(e) This section does not determine whether an account debtor, bank, or
other person obligated on collateral owes a duty to a secured party.

Legislative History

Source: L. 2001: Entire article R&RE, p. 1401, � 1, effective July 1. L. 2012: (b)(2)(A) amended, (HB 12-1262), ch. 170, p. 604, � 15, effective July 1, 2013.