Colorado Code
Part 2 - Form, Formation, and Readjustment of Contract
§ 4-2-210. Delegation of Performance - Assignment of Rights

(2.5) The creation, attachment, perfection, or enforcement of a security interest in the seller's interest under a contract is not a transfer that materially changes the duty of or increases materially the burden or risk imposed on the buyer or impairs materially the buyer's chance of obtaining return performance within the purview of subsection (2) of this section unless, and then only to the extent that enforcement actually results in a delegation of material performance of the seller. Even in that event, the creation, attachment, perfection, and enforcement of the security interest remain effective, but (i) the seller is liable to the buyer for damages caused by the delegation to the extent that the damages could not reasonably be prevented by the buyer, and (ii) a court having jurisdiction may grant other appropriate relief, including cancellation of the contract for sale or an injunction against enforcement of the security interest or consummation of the enforcement.

Source: L. 65: p. 1305, § 1. C.R.S. 1963: § 155-2-210. L. 2001: (2) amended and (2.5) added, p. 1436, § 19, effective July 1.
Prior Uniform Statutory Provision: None.
Purposes:

This Article takes no position on the possibility of extending some recognition or power to the original parties to work out normal commercial readjustments of the contract in the case of financing assignments even after the original obligor has been notified of the assignment. This question is dealt with in the Article on Secured Transactions (Article 9).
Cross References:
Point 3: Articles 5 and 9.
Point 4: Sections 4-2-306 and 4-2-609.
Point 5: Article 9, Sections 9-317 and 9-318.
Point 7: Article 9.
Definitional Cross References:
"Agreement". Section 4-1-201.
"Buyer". Section 4-2-103.
"Contract". Section 4-1-201.
"Party". Section 4-1-201.
"Rights". Section 4-1-201.
"Seller". Section 4-2-103.
"Term". Section 4-1-201.