Colorado Code
Part 6 - Default
§ 4-9-621. Notification of Proposal to Accept Collateral









Source: L. 2001: Entire article R&RE, p. 1415, § 1, effective July 1.
Editor's note: This section is similar to former § 4-9-505 as it existed prior to 2001.


Unlike Section 9-611, this section contains no "safe harbor," which excuses an enforcing secured party from notifying certain secured parties and other lienholders. This is because, unlike Section 9-610, which requires that a disposition of collateral be commercially reasonable, Section 9-620 permits the debtor and secured party to set the amount of credit the debtor will receive for the collateral subject only to the requirement of good faith. An effective acceptance discharges subordinate security interests and other subordinate liens. See Section 9-622. If collateral is subject to several liens securing debts much larger than the value of the collateral, the debtor may be disinclined to refrain from consenting to an acceptance by the holder of the senior security interest, even though, had the debtor objected and the senior disposed of the collateral under Section 9-610, the collateral may have yielded more than enough to satisfy the senior security interest (but not enough to satisfy all the liens). Accordingly, this section imposes upon the enforcing secured party the risk of the filing office's errors and delay. The holder of a security interest who is entitled to notification under this section but to whom the enforcing secured party does not send notification has the right to recover under Section 9-625(b) any loss resulting from the secured party's noncompliance with this section.

Structure Colorado Code

Colorado Code

Title 4 - Uniform Commercial Code

Article 9 - Secured Transactions

Part 6 - Default

§ 4-9-601. Rights After Default - Judicial Enforcement - Consignor or Buyer of Accounts, Chattel Paper, Payment Intangibles, or Promissory Notes

§ 4-9-602. Waiver and Variance of Rights and Duties

§ 4-9-603. Agreement on Standards Concerning Rights and Duties

§ 4-9-604. Procedure if Security Agreement Covers Real Property or Fixtures

§ 4-9-605. Unknown Debtor or Secondary Obligor

§ 4-9-606. Time of Default for Agricultural Lien

§ 4-9-607. Collection and Enforcement by Secured Party

§ 4-9-608. Application of Proceeds of Collection or Enforcement - Liability for Deficiency and Right to Surplus

§ 4-9-609. Secured Party's Right to Take Possession After Default

§ 4-9-610. Disposition of Collateral After Default

§ 4-9-611. Notification Before Disposition of Collateral

§ 4-9-612. Timeliness of Notification Before Disposition of Collateral

§ 4-9-613. Contents and Form of Notification Before Disposition of Collateral: General

§ 4-9-614. Contents and Form of Notification Before Disposition of Collateral: Consumer-Goods Transaction

§ 4-9-615. Application of Proceeds of Disposition; Liability for Deficiency and Right to Surplus

§ 4-9-616. Explanation of Calculation of Surplus or Deficiency - Definitions

§ 4-9-617. Rights of Transferee of Collateral

§ 4-9-618. Rights and Duties of Certain Secondary Obligors

§ 4-9-619. Transfer of Record or Legal Title

§ 4-9-620. Acceptance of Collateral in Full or Partial Satisfaction of Obligation - Compulsory Disposition of Collateral

§ 4-9-621. Notification of Proposal to Accept Collateral

§ 4-9-622. Effect of Acceptance of Collateral

§ 4-9-623. Right to Redeem Collateral

§ 4-9-624. Waiver

§ 4-9-625. Remedies for Secured Party's Failure to Comply With Article

§ 4-9-626. Action in Which Deficiency or Surplus Is in Issue

§ 4-9-627. Determination of Whether Conduct Was Commercially Reasonable

§ 4-9-628. Nonliability and Limitation on Liability of Secured Party - Liability of Secondary Obligor

§ 4-9-629. Secured Party's Liability When Taking Possession After Default - Legislative Declaration - Fund