Colorado § 11-42-109 Sale of delinquent stock

Colorado Statutes

§ 11-42-109 — Sale of delinquent stock

Colorado § 11-42-109

Title 11Financial

Art.Shares and Stock

This text of Colorado § 11-42-109 (Sale of delinquent stock) 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. § 11-42-109 (2026).

Text

(1)If a stockholder refuses or neglects to pay the assessment specified in a notice provided pursuant to section 11-42-108

(2)within sixty days after the date of mailing, the directors of the association may sell to the highest bidder at public auction any part or all of the stock necessary to pay the assessment of the stockholder, after giving a previous notice of the sale for ten days in a newspaper of general circulation published in the county where the principal office of the association is located. A copy of the notice of sale shall also be served on the stockholder by mailing a copy of the notice to the stockholder's last-known address ten days before the day fixed for the sale. The stock may also be sold at a private sale without public notice; except that, before making

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(1) If a stockholder refuses or neglects
to pay the assessment specified in a notice provided pursuant to section 11-42-108
(2) within sixty days after the date of mailing, the directors of the association may
sell to the highest bidder at public auction any part or all of the stock necessary to
pay the assessment of the stockholder, after giving a previous notice of the sale for
ten days in a newspaper of general circulation published in the county where the
principal office of the association is located. A copy of the notice of sale shall also
be served on the stockholder by mailing a copy of the notice to the stockholder's
last-known address ten days before the day fixed for the sale. The stock may also
be sold at a private sale without public notice; except that, before making a private
sale, the board of directors shall obtain an offer in writing and serve a copy of the
offer upon the owner of record of the stock by mailing a copy of the offer to the
owner's last-known address. If, after service of the offer, the owner still refuses or
neglects to pay the assessment for thirty days, the directors may accept the offer
and sell the stock to the person making the offer or to any other person making an
offer in a larger amount. The board of directors shall not sell the stock for less than
the amount of the assessment and the expense of the sale.

(2) Out of the proceeds of the stock sold, the directors shall pay the amount
of assessment levied thereon and the necessary cost of sale, and the balance, if
any, shall be paid to the person whose stock has been sold. A sale of stock as
provided in this section shall effect an absolute cancellation of the outstanding
certificate evidencing the stock sold and shall make the same null and void, and a
new certificate shall be issued by the association to the purchaser thereof.

Legislative History

Source: L. 33: p. 317, � 1. CSA: C. 25, � 25. L. 43: p. 204, � 5. L. 51: p. 212, � 2. CRS 53: � 122-3-9. C.R.S. 1963: � 122-3-9. L. 2024: (1) amended, (HB 24-1381), ch. 350, p. 2377, � 37, effective August 7.