Source: L. 94: Entire article R&RE, p. 858, § 1, effective January 1, 1995.
Editor's note: This section is similar to former § 4-3-804 as it existed prior to 1994.
Section 3-309 is a modification of former Section 3-804. The rights stated are those of "a person entitled to enforce the instrument" at the time of loss rather than those of an "owner" as in former Section 3-804. Under subsection (b), judgment to enforce the instrument cannot be given unless the court finds that the defendant will be adequately protected against a claim to the instrument by a holder that may appear at some later time. The court is given discretion in determining how adequate protection is to be assured. Former Section 3-804 allowed the court to "require security indemnifying the defendant against loss." Under Section 3-309 adequate protection is a flexible concept. For example, there is substantial risk that a holder in due course may make a demand for payment if the instrument was payable to bearer when it was lost or stolen. On the other hand if the instrument was payable to the person who lost the instrument and that person did not indorse the instrument, no other person could be a holder of the instrument. In some cases there is risk of loss only if there is doubt about whether the facts alleged by the person who lost the instrument are true. Thus, the type of adequate protection that is reasonable in the circumstances may depend on the degree of certainty about the facts in the case.
Structure Colorado Code
Title 4 - Uniform Commercial Code
Article 3 - Negotiable Instruments
Part 3 - Enforcement of Instruments
§ 4-3-301. Person Entitled to Enforce Instrument
§ 4-3-302. Holder in Due Course
§ 4-3-303. Value and Consideration
§ 4-3-305. Defenses and Claims in Recoupment
§ 4-3-306. Claims to an Instrument
§ 4-3-307. Notice of Breach of Fiduciary Duty
§ 4-3-308. Proof of Signatures and Status as Holder in Due Course
§ 4-3-309. Enforcement of Lost, Destroyed, or Stolen Instrument
§ 4-3-310. Effect of Instrument on Obligation for Which Taken
§ 4-3-311. Accord and Satisfaction by Use of Instrument
§ 4-3-312. Lost, Destroyed, or Stolen Cashier's Check, Teller's Check, or Certified Check