§ 42-6-129 — Second or other junior mortgages

Colorado § 42-6-129

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

Text

(1) On and after July 1, 1977, a
person who takes a junior mortgage on a motor or off-highway vehicle for which a
Colorado certificate of title has been issued or filed may file the mortgage for
public record and have the existence of the mortgage noted or filed on the
certificate of title with like effect as in other cases, as required by this section.

(2) The junior mortgagee or the holder of the mortgage shall file the
mortgage as required by section 42-6-121 with the authorized agent of the county
where the mortgagor of the motor or off-highway vehicle resides or where the
vehicle is located with a written request to have the existence of the mortgage
noted or filed on the certificate of title records of the authorized agent pertaining to
the vehicle covered by the junior mortgage. Upon the filing of the mortgage, the
authorized agent shall note in the record of the vehicle the day and hour when the
mortgage was received by the agent, shall make and deliver a receipt for the
mortgage to the person filing the mortgage, and shall file the mortgage as required
under section 42-6-122. If there is more than one mortgage or lien on the motor or
off-highway vehicle, the department's authorized agent may electronically transmit
the mortgage or lien to the first mortgage or lienholder and notify the first
mortgage or lienholder of any additional mortgages or liens.

(3) The director's authorized agent, by registered mail, return receipt
requested, shall make a written demand on the holder of the certificate of title,
addressed to such person at the person's address as the same may appear in said
written request, that such certificate be delivered to the authorized agent for the
purpose of having noted on the certificate such second or junior mortgage. Within
fifteen days after the receipt of such demand, the person holding such certificate
shall either mail or deliver the same to such director's authorized agent or, if the
person no longer has possession of the certificate, shall so notify the agent and, if
the person knows, shall likewise inform the agent where and from whom such
certificate may be procured. Upon the receipt of such certificate, the director's
authorized agent shall complete an application for a new title and record the
number thereof on the mortgage, as in the case of a first mortgage, and shall, as in
the case of a first mortgage, issue and file a new certificate of title on which record
the existence of all mortgages on the motor vehicle, including such second or junior
mortgage, have been noted.

(4) If a person lawfully in possession of a certificate of title to a motor or off-highway vehicle, upon whom demand is made for the delivery to the authorized
agent, fails to deliver or mail the certificate of title to the authorized agent, the
person is liable to the holder of the junior mortgage for all damage sustained by
reason of the omission.

Legislative History

Source: L. 94: Entire title amended with relocations, p. 2462, � 1, effective January 1, 1995. L. 2000: (1), (2), and (3) amended, p. 1667, � 22, effective July 1, 2001. L. 2013: (1), (2), and (4) amended, (SB 13-280), ch. 407, pp. 2391, 2398, �� 25, 44, effective June 5; (2) amended, (HB 13-1289), ch. 380, p. 2226, � 7, effective June 5.