§ 7-58-604 — Security interest and set-off

Colorado § 7-58-604

• Jurisdiction: Colorado
• Title 07: Corporations
• Art.: Uniform Limited Cooperative Association Act

Text

(1) A member or transferee may
create an enforceable security interest in its financial rights in a limited cooperative
association.

(2) Unless the articles or bylaws otherwise provide, a member may not create
an enforceable security interest in the member's governance rights in, or in the
right or obligation, if any, to do business with, a limited cooperative association.

(3) The articles or bylaws may provide that a limited cooperative association
has a security interest in the financial rights of a member to secure payment of any
indebtedness or other obligation of the member to the association. A security
interest provided for in the articles or bylaws is enforceable under, and governed
by, article 9 of title 4, C.R.S.

(4) Unless the articles or bylaws otherwise provide, a member may not
compel the limited cooperative association to offset financial rights against any
indebtedness or obligation owed to the association.

Legislative History

Source: L. 2011: Entire article added, (SB 11-191), ch. 197, p. 788, � 1, effective April 2, 2012.