Colorado § 5-9.3-105 Calculation and payment of deficiency balance

Colorado Statutes

§ 5-9.3-105 — Calculation and payment of deficiency balance

Colorado § 5-9.3-105

Title 05Consumer

Art.Guaranteed Asset Protection Agreements

This text of Colorado § 5-9.3-105 (Calculation and payment of deficiency balance) 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. § 5-9.3-105 (2026).

Text

(1)The calculation of the payment or waiver of the deficiency balance may exclude the following, as long as these exclusions are clearly specified in the GAP agreement:

(a)Amounts owed for unpaid installments under the finance agreement, including any fees or surcharges imposed as late charges for unpaid installments;

(b)Legally permitted fees incurred after the effective date of the finance agreement;

(c)Fees for the return or dishonor of checks or other instruments tendered as payment;

(d)Premiums or fees for legally permitted insurance added after the effective date of the finance agreement;

(e)Refunds owed on cancellable service contracts and other protection products that were financed in the finance agreement;

(f)The salvage value of the motor vehicle, as determin

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(1) The
calculation of the payment or waiver of the deficiency balance may exclude the
following, as long as these exclusions are clearly specified in the GAP agreement:

(a) Amounts owed for unpaid installments under the finance agreement,
including any fees or surcharges imposed as late charges for unpaid installments;

(b) Legally permitted fees incurred after the effective date of the finance
agreement;

(c) Fees for the return or dishonor of checks or other instruments tendered
as payment;

(d) Premiums or fees for legally permitted insurance added after the
effective date of the finance agreement;

(e) Refunds owed on cancellable service contracts and other protection
products that were financed in the finance agreement;

(f) The salvage value of the motor vehicle, as determined by the consumer's
primary insurer of the motor vehicle, if the totaled motor vehicle is retained by the
consumer; and

(g) Deductions taken by the consumer's primary insurer of the motor vehicle
for prior unrepaired damage to the motor vehicle if, before taking the deduction, the
GAP administrator or lender has documentary proof that:

(I) The consumer submitted an insurance claim related to prior unrepaired
damage to the motor vehicle; or

(II) The consumer received payment for the prior unrepaired damage to the
motor vehicle.

(2) Except as provided in this article 9.3, the GAP agreement must pay or
waive all of the deficiency balance that would have been owed if:

(a) The consumer had maintained property damage insurance covering the
actual cash value of the motor vehicle as of the date of loss, even if the consumer
has not maintained such property damage insurance; or

(b) The creditor had purchased property damage insurance for the motor
vehicle pursuant to section 5-2-209.

(3) The GAP agreement must provide the consumer with a full refund or a
credit of the amount of the consumer's deductible charged for property damage, up
to five hundred dollars, as part of the payment of, or relief from, liability for the
deficiency balance. The GAP agreement may provide additional coverage for the
consumer's deductible in excess of five hundred dollars.