§ 6-15-102 — Art dealers and artists - consignment of works of fine art

Colorado § 6-15-102

• Jurisdiction: Colorado
• Title 06: Consumer
• Art.: Art Transactions

Text

(1)
Notwithstanding any custom, practice, or usage of the trade and any of the
provisions of section 4-2-326, C.R.S., to the contrary, whenever an artist delivers or
causes to be delivered a work of fine art of his own creation to an art dealer for the
purpose of exhibition or sale on a commission, fee, or other basis of compensation,
the delivery to and acceptance thereof by the art dealer is deemed to place the
work on consignment and:

(a) Such art dealer shall thereafter, with respect to the work, be deemed to
be the agent of such artist;

(b) Such work is trust property in the hands of the consignee for the benefit
of the consignor; and

(c) Any proceeds from the sale of the work are trust funds in the hands of the
consignee for the benefit of the consignor.

(2) Notwithstanding the subsequent purchase of a work of fine art by the
consignee directly or indirectly for his own account, the work initially received on
consignment shall be deemed to remain trust property until the price is paid in full
to the consignor. If such work is thereafter resold to a bona fide third party before
the consignor has been paid in full, the proceeds of the resale are trust funds in the
hands of the consignee for the benefit of the consignor to the extent necessary to
pay any balance still due to the consignor, and such trusteeship shall continue until
the fiduciary obligation of the consignee with respect to such transaction is
discharged in full.

(3) Notwithstanding the provisions of the Uniform Commercial Code -
Sales, no such trust property or trust funds shall be subject to or subordinate to
any claims, liens, or security interests of the consignee's creditors.

(4) An art dealer is strictly liable for the loss of or damage to a work of fine
art while it is in his possession. The value of the work of fine art is, for the purposes
of this subsection (4), the value established in a written agreement between the
artist and the art dealer prior to the loss or damage of the work.

Legislative History

Source: L. 82: Entire article added, p. 230, � 1, effective March 25. L. 95: (4) amended, p. 192, � 2, effective April 13.