Colorado § 42-6-120 Security interests upon vehicles

Colorado Statutes

§ 42-6-120 — Security interests upon vehicles

Colorado·Title 42 Vehicles and·Art. Certificates of Title -

(1)Except as provided in this section and sections 42-6-130 and 42-6-148, the provisions of the Uniform Commercial Code, title 4, C.R.S., relating to the filing, recording, releasing, renewal, priority, and extension of chattel mortgages, as defined in section 42-6-102 (9), do not apply to motor or off-highway vehicles. A mortgage or refinancing of a mortgage intended by the parties to the mortgage or refinancing to encumber or create a lien on a motor vehicle, or to be perfected as a valid lien against the rights of third persons, purchasers for value without notice, mortgagees, or creditors of the owner, must be filed for public record. The department or authorized agent shall note the fact of filing on the owner's certificate of title or bill of sale substantially in the manne

Free access — add to your briefcase to read the full text and ask questions with AI

(1) Except as provided in this
section and sections 42-6-130 and 42-6-148, the provisions of the Uniform
Commercial Code, title 4, C.R.S., relating to the filing, recording, releasing,
renewal, priority, and extension of chattel mortgages, as defined in section 42-6-102 (9), do not apply to motor or off-highway vehicles. A mortgage or refinancing of
a mortgage intended by the parties to the mortgage or refinancing to encumber or
create a lien on a motor vehicle, or to be perfected as a valid lien against the rights
of third persons, purchasers for value without notice, mortgagees, or creditors of
the owner, must be filed for public record. The department or authorized agent
shall note the fact of filing on the owner's certificate of title or bill of sale
substantially in the manner provided in section 42-6-121.

(2) This section and section 42-6-121 do not apply to a mortgage or security
interest upon a vehicle or motor vehicle held for sale or lease that constitutes
inventory as defined in section 4-9-102, C.R.S. The perfection of mortgages or
security interests, and the rights of the parties, are governed by article 9 of title 4,
C.R.S.

(3) Notwithstanding any provision of law to the contrary, in the case of motor
vehicles, off-highway vehicles, or trailers, a lease transaction does not create a sale
or security interest solely because it permits or requires the rental price to be
adjusted either upward or downward under the agreement by reference to the
amount realized upon sale or other disposition of the motor vehicle, off-highway
vehicle, or trailer.

(4) The rights of a buyer, lessee, or lien creditor that arise after a mortgage
attaches to a motor or off-highway vehicle and before perfection under this article
are determined by section 4-9-317, C.R.S.

Colorado § 42-6-120 (Security interests upon vehicles) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Legislative History

Source: L. 94: Entire title amended with relocations, p. 2458, � 1, effective January 1, 1995. L. 97: (3) added, p. 333, � 1, effective April 16. L. 2000: (1) amended, p. 1662, � 14, effective July 1, 2001. L. 2001: (2) amended, p. 1448, � 46, effective July 1. L. 2005: (1) amended, p. 817, � 18, effective August 8. L. 2006: (1) amended, p. 1513, � 78, effective June 1; (1) amended, p. 640, � 1, effective July 1. L. 2009: (1) amended and (4) added, (SB 09-150), ch. 182, p. 802, � 3, effective April 22. L. 2013: Entire section amended, (SB 13-280), ch. 407, p. 2385, � 16, effective June 5.