§ 38-20-106.5 — Motor vehicle repair garages - restoration of liens

Colorado § 38-20-106.5

• Jurisdiction: Colorado
• Title 38: Property -
• Art.: Lien on Personal Property

Text

(1) A
motor vehicle repair garage which is entitled to a lien under section 38-20-106 for
motor vehicle repairs and which has released the motor vehicle upon receipt of
payment for such repairs in the form of a check, draft, or order for the payment of
money upon any bank, depository, person, firm, or corporation shall be entitled to
the restoration of the lien if the check, draft, or order is not honored for full
payment or is dishonored upon its presentment and if the maker, issuer, or drawer
fails, within twelve days after receiving notice from the motor vehicle repair garage
of nonpayment or dishonor, to pay the check, draft, or order. In the event such
motor vehicle repair garage has released the motor vehicle upon an open account,
the motor vehicle repair garage shall be entitled to restoration of the lien if the
total amount as agreed upon by the parties is not paid when due as agreed upon by
the parties and if the debtor fails, within twelve days after receiving notice from the
motor vehicle repair garage of nonpayment, to pay the amount due. Restoration of
such lien shall entitle the motor vehicle repair garage to regain possession of the
motor vehicle. In regaining possession, the motor vehicle repair garage may
proceed without judicial process if this can be done without breach of the peace or
may proceed by action.

(2) Notice, as used in subsection (1) of this section, means notice given to
the person entitled thereto, either in person or in writing. Such notice in writing
shall be conclusively presumed to have been given when deposited by registered or
certified mail, return receipt requested and postage prepaid, in the United States
mail and addressed to such person at his address as it appears on the invoice or
such check, draft, or order or, in the case of an open account, as it appears on the
account records of the motor vehicle repair garage. Any notice regarding an open
account may only be given subsequent to nonpayment.

Legislative History

Source: L. 77: Entire section added, p. 1924, � 2, effective January 1, 1978. L. 81: Entire section amended, p. 1820, � 1, effective July 1.