Colorado Code
Part 3 - Perfection and Priority
§ 4-9-314. Perfection by Control









Source: L. 2001: Entire article R&RE, p. 1352, § 1, effective July 1. L. 2006: (a) and (b) amended, p. 502, § 41, effective September 1.
Editor's note: This section is similar to former § 4-9-115 (4) as it existed prior to 2001.



In a transaction in which a secured party who has control grants a security interest in investment property or sells outright the investment property, by virtue of the debtor's consent or applicable legal rules, a purchaser from the secured party typically will cut off the debtor's rights in the investment property or be immune from the debtor's claims. See Section 9-207, Comments 5 and 6. If the investment property is a security, the debtor normally would retain no interest in the security following the purchase from the secured party, and a claim of the debtor against the secured party for redemption (Section 9-623) or otherwise with respect to the security would be a purely personal claim. If the investment property transferred by the secured party is a financial asset in which the debtor had a security entitlement credited to a securities account maintained with the secured party as a securities intermediary, the debtor's claim against the secured party could arise as a part of its securities account notwithstanding its personal nature. (This claim would be analogous to a "credit balance" in the securities account, which is a component of the securities account even though it is a personal claim against the intermediary.) In the case in which the debtor may retain an interest in investment property notwithstanding a repledge or sale by the secured party, subsection (c) makes clear that the security interest will remain perfected by control.

Structure Colorado Code

Colorado Code

Title 4 - Uniform Commercial Code

Article 9 - Secured Transactions

Part 3 - Perfection and Priority

§ 4-9-301. Law Governing Perfection and Priority of Security Interests

§ 4-9-302. Law Governing Perfection and Priority of Agricultural Liens

§ 4-9-303. Law Governing Perfection and Priority of Security Interests in Goods Covered by a Certificate of Title

§ 4-9-304. Law Governing Perfection and Priority of Security Interests in Deposit Accounts

§ 4-9-305. Law Governing Perfection and Priority of Security Interests in Investment Property

§ 4-9-306. Law Governing Perfection and Priority of Security Interests in Letter-of-Credit Rights

§ 4-9-307. Location of Debtor

§ 4-9-308. When Security Interest or Agricultural Lien Is Perfected - Continuity of Perfection

§ 4-9-309. Security Interest Perfected Upon Attachment

§ 4-9-310. When Filing Required to Perfect Security Interest or Agricultural Lien - Security Interests and Agricultural Liens to Which Filing Provisions Do Not Apply

§ 4-9-311. Perfection of Security Interests in Property Subject to Certain Statutes, Regulations, and Treaties

§ 4-9-312. Perfection of Security Interests in Chattel Paper, Deposit Accounts, Documents, Goods Covered by Documents, Instruments, Investment Property, Letter-of-Credit Rights, and Money - Perfection by Permissive Filing - Temporary Perfection Witho...

§ 4-9-313. When Possession by or Delivery to Secured Party Perfects Security Interest Without Filing

§ 4-9-314. Perfection by Control

§ 4-9-315. Secured Party's Rights on Disposition of Collateral and in Proceeds

§ 4-9-316. Effect of Change in Governing Law

§ 4-9-317. Interests That Take Priority Over or Take Free of Security Interest or Agricultural Lien

§ 4-9-318. No Interest Retained in Right to Payment That Is Sold - Rights and Title of Seller of Account or Chattel Paper With Respect to Creditors and Purchasers

§ 4-9-319. Rights and Title of Consignee With Respect to Creditors and Purchasers

§ 4-9-320. Buyer of Goods

§ 4-9-321. Licensee of General Intangible and Lessee of Goods in Ordinary Course of Business

§ 4-9-322. Priorities Among Conflicting Security Interests in and Agricultural Liens on Same Collateral

§ 4-9-323. Future Advances

§ 4-9-324. Priority of Purchase-Money Security Interests

§ 4-9-325. Priority of Security Interests in Transferred Collateral

§ 4-9-326. Priority of Security Interests Created by New Debtor

§ 4-9-327. Priority of Security Interests in Deposit Account

§ 4-9-328. Priority of Security Interests in Investment Property

§ 4-9-329. Priority of Security Interests in Letter-of-Credit Right

§ 4-9-330. Priority of Purchaser of Chattel Paper or Instrument

§ 4-9-331. Priority of Rights of Purchasers of Instruments, Documents, and Securities Under Other Articles - Priority of Interests in Financial Assets and Security Entitlements Under Article 8

§ 4-9-332. Transfer of Money - Transfer of Funds From Deposit Account

§ 4-9-333. Priority of Certain Liens Arising by Operation of Law

§ 4-9-334. Priority of Security Interests in Fixtures and Crops

§ 4-9-335. Accessions

§ 4-9-336. Commingled Goods

§ 4-9-337. Priority of Security Interests in Goods Covered by Certificate of Title

§ 4-9-338. Priority of Security Interest or Agricultural Lien Perfected by Filed Financing Statement Providing Certain Incorrect Information

§ 4-9-339. Priority Subject to Subordination

§ 4-9-340. Effectiveness of Right of Recoupment or Set-Off Against Deposit Account

§ 4-9-341. Bank's Rights and Duties With Respect to Deposit Account

§ 4-9-342. Bank's Right to Refuse to Enter Into or Disclose Existence of Control Agreement