Colorado § 11-47-113 Procedure when event of default occurs

Colorado Statutes

§ 11-47-113 — Procedure when event of default occurs

Colorado § 11-47-113

Title 11Financial

Art.Protection of Deposits of Public Moneys

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Bluebook

Colo. Rev. Stat. § 11-47-113 (2026).

Text

(1)When the commissioner has determined that an event of default has occurred with respect to any eligible public depository and has determined and fixed the date of such occurrence, he or she shall proceed in the following manner:

(a)He shall forthwith seize and take possession of all eligible collateral, maintained or pledged, belonging to the defaulting depository, wherever held in custody.

(b)Within twenty days after seizing and taking possession of all eligible collateral pursuant to paragraph (a) of this subsection (1), the commissioner shall ascertain the aggregate amount of public deposits held by the defaulting depository, as disclosed by the records of such depository, and the portion thereof that is insured by the federal deposit insurance corporation or its succes

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(1) When the
commissioner has determined that an event of default has occurred with respect to
any eligible public depository and has determined and fixed the date of such
occurrence, he or she shall proceed in the following manner:

(a) He shall forthwith seize and take possession of all eligible collateral,
maintained or pledged, belonging to the defaulting depository, wherever held in
custody.

(b) Within twenty days after seizing and taking possession of all eligible
collateral pursuant to paragraph (a) of this subsection (1), the commissioner shall
ascertain the aggregate amount of public deposits held by the defaulting
depository, as disclosed by the records of such depository, and the portion thereof
that is insured by the federal deposit insurance corporation or its successor, and
shall notify each affected governmental unit of the amount of its deposit, as so
disclosed, and the portion thereof that is so insured, and shall require each affected
governmental unit to provide him or her with a verified statement showing the
amount of its deposit, as disclosed by its own records, within thirty days after
receipt of such notification.

(c) Upon receipt of all verified statements from an affected governmental
unit, he shall determine and fix the net deposit liability of the defaulting depository
to such affected governmental unit. Upon receipt of all such verified statements
from all affected governmental units, he shall determine and fix the aggregate net
deposit liability of the defaulting depository to all affected governmental units.

(d) The commissioner shall proceed to liquidate the eligible collateral
maintained or pledged by the defaulting depository which he had theretofore
seized and may, from time to time, apply the amount realized from such liquidation
against the net deposit liability to any governmental unit. The commissioner shall
maintain a reserve from such amount realized for the payment of the aggregate net
deposit liability to all affected governmental units until payment is made to all
affected governmental units.

(e) In the event the federal deposit insurance corporation or its successor is
appointed and acts as liquidator or receiver of any eligible public depository under
state or federal law, those duties specified in this section to be performed by the
commissioner may, where the commissioner deems appropriate, be delegated by
the commissioner to and performed by the federal deposit insurance corporation or
its successor.

Legislative History

Source: L. 75: Entire article added, p. 404, � 1, effective July 1. L. 87: (1)(e) amended, p. 469, � 4, effective May 1. L. 89: (1)(b) to (1)(d) amended, p. 614, � 11, effective April 19. L. 2004: IP(1), (1)(b), and (1)(e) amended, p. 144, � 37, effective July 1.