Colorado Code
Part 2 - Issue and Issuer
§ 4-8-203. Staleness as Notice of Defect or Defense

After an act or event, other than a call that has been revoked, creating a right to immediate performance of the principal obligation represented by a certificated security or setting a date on or after which the security is to be presented or surrendered for redemption or exchange, a purchaser is charged with notice of any defect in its issue or defense of the issuer, if the act or event:

Source: L. 96: Entire article R&RE, p. 217, § 2, effective July 1.
Editor's note: This section is similar to former § 4-8-203 as it existed prior to 1996.

Defaulted certificated securities may be traded on financial markets in the same manner as unmatured and undefaulted instruments and a purchaser might not be placed upon notice of irregularity by the mere fact of default. An issuer, however, should at some point be placed in a position to determine definitely its liability on an invalid or improper issue, and for this purpose a security under this section becomes "stale" two years after the default. A different rule applies when the question is notice not of issuer's defenses but of claims of ownership. Section 8-105 and Comment.
Definitional Cross References:
"Certificated security". Section 8-102(a)(4)
"Notice". Section 1-201(25)
"Purchaser". Sections 1-201(33) & 8-116
"Security". Section 8-102(a)(15)
"Security certificate". Section 8-102(a)(16)
"Uncertificated security". Section 8-102(a)(18)