Colorado Code
Part 1 - General Provisions
§ 4-2.5-109. Option to Accelerate at Will

Source: L. 91: Entire article added, p. 279, § 1, effective July 1, 1992.
Uniform Statutory Source: Section 1-208 and Unif. Consumer Credit Code 5.109(2), 7A U.L.A. 171 (1974).
Purposes:
Subsection (1) reflects modest changes in style to the provisions of the first sentence of Section 1-208.
Subsection (2), however, reflects a significant change in the provisions of the second sentence of Section 1-208 by creating a new rule with respect to a consumer lease. A lease provision allowing acceleration at the will of the lessor or when the lessor deems itself insecure is of critical importance to the lessee. In a consumer lease it is a provision that is not usually agreed to by the parties but is usually mandated by the lessor. Therefore, where its invocation depends not on specific criteria but on the discretion of the lessor, its use should be regulated to prevent abuse. Subsection (1) imposes a duty of good faith upon its exercise. Subsection (2) shifts the burden of establishing good faith to the lessor in the case of a consumer lease, but not otherwise.
Cross Reference:
Section 1-208.
Definitional Cross References:
"Burden of establishing". Section 1-201(8).
"Consumer lease". Section 2A-103(1)(e).
"Good faith". Sections 1-201(19) and 2-103(1)(b).
"Party". Section 1-201(29).
"Term". Section 1-201(42).

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