Colorado Code
Part 5 - Filing
§ 4-9-515. Duration and Effectiveness of Financing Statement - Effect of Lapsed Financing Statement

Source: L. 2001: Entire article R&RE, p. 1386, § 1, effective July 1. L. 2012: (f) amended, (HB 12-1262), ch. 170, p. 602, § 12, effective July 1, 2013.
Editor's note: (1) This section is similar to former § 4-9-403 as it existed prior to 2001.
(2) Colorado legislative change: Colorado added the reference to section 4-9-528 in subsection (a) and the phrase "or the five-year period specified in section 4-9-528 (a)(1)" in subsection (d).





Example 1: SP-1 and SP-2 both hold security interests in the same collateral. Both security interests are perfected by filing. SP-1 filed first and has priority under Section 9-322(a)(1). The effectiveness of SP-1's filing lapses. As long as SP-2's security interest remains perfected thereafter, SP-2 is entitled to priority over SP-1's security interest, which is deemed never to have been perfected as against a purchaser for value (SP-2). See Section 9-322(a)(2).
Example 2: SP holds a security interest perfected by filing. On July 1, LC acquires a judicial lien on the collateral. Two weeks later, the effectiveness of the financing statement lapses. Although the security interest becomes unperfected upon lapse, it was perfected when LC acquired its lien. Accordingly, notwithstanding the lapse, the perfected security interest has priority over the rights of LC, who is not a purchaser. See Section 9-317(a)(2).

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