§ 42-6-126 — New certificate upon release of mortgage

Colorado § 42-6-126

• Jurisdiction: Colorado
• Title 42: Vehicles and
• Art.: Certificates of Title -

Text

(1) (a) Upon the
satisfaction of the debt and release of a mortgage on a motor or off-highway
vehicle filed for record as required by section 42-6-121:

(I) The owner of the vehicle encumbered by the mortgage, the purchaser
from or transferee of the owner as appears on the certificate of title, or the holder
of a mortgage that was junior to the mortgage released, upon the receipt of the
certificate of title, as provided in section 42-6-125, shall deliver the title to the
authorized agent, who shall transmit the title to the director; or

(II) The lienholder shall notify the authorized agent of the satisfaction of the
debt and release of the mortgage, setting forth any facts concerning the right of
the holder to release the mortgage as the director may require. The lienholder shall
sign a satisfaction and release that is affirmed by a statement containing or
accompanied by a written declaration that it is made under the penalties of perjury
in the second degree, as defined in section 18-8-503, C.R.S. Upon receiving a valid
satisfaction and release, the director or authorized agent shall note the release of
the lien and shall issue a certificate of title for the motor vehicle, omitting all
reference to the mortgage.

(b) Upon the receipt by the director of a statement of mortgage release, the
director shall:

(I) Note on the records in the director's office to show the release of the lien
of the mortgage;

(II) Issue a new certificate of title to the motor or off-highway vehicle,
omitting all reference to the released mortgage; and

(III) Dispose of the new certificate of title in the manner prescribed in other
cases unless directed otherwise.

(2) For certificates of title that are maintained in an electronic format, any
release of lien, mortgage, or encumbrance shall be filed prior to the issuance of a
new certificate of title. In the event the holder of the lien, mortgage, or other
encumbrance has filed bankruptcy or is no longer in business, the person seeking
issuance of a new certificate of title reflecting the release of the lien, mortgage, or
other encumbrance, which has been maintained electronically, shall either post a
bond with the director in a reasonable amount determined by the director or shall
wait until the period of the lien, mortgage, or other encumbrance expires.

Legislative History

Source: L. 94: Entire title amended with relocations, p. 2461, � 1, effective January 1, 1995. L. 2000: Entire section amended, p. 1665, � 20, effective July 1, 2001. L. 2009: (1) amended, (HB 09-1089), ch. 196, p. 881, � 4, effective October 1. L. 2013: (1)(a) and (1)(b)(II) amended, (SB 13-280), ch. 407, p. 2389, � 22, effective June 5.