Source: L. 2001: Entire article R&RE, p. 1419, § 1, effective July 1.
Editor's note - Colorado legislative change: Colorado added the word "reasonable" to subsections (a)(3) and (a)(4) and added the phrase "Subject to section 5-5-103, C.R.S.," to subsection (b).
Unless the secured party proves that compliance with the relevant provisions would have yielded a smaller amount, under paragraph (4) the amount that a complying collection, enforcement, or disposition would have yielded is deemed to be equal to the amount of the secured obligation, together with expenses and attorney's fees. Thus, the secured party may not recover any deficiency unless it meets this burden.
Courts construing former Section 9-507 disagreed about the consequences of a secured party's failure to comply with the requirements of former Part 5. Three general approaches emerged. Some courts have held that a noncomplying secured party may not recover a deficiency (the "absolute bar" rule). A few courts held that the debtor can offset against a claim to a deficiency all damages recoverable under former Section 9-507 resulting from the secured party's noncompliance (the "offset" rule). A plurality of courts considering the issue held that the noncomplying secured party is barred from recovering a deficiency unless it overcomes a rebuttable presumption that compliance with former Part 5 would have yielded an amount sufficient to satisfy the secured debt. In addition to the nonuniformity resulting from court decisions, some States enacted special rules governing the availability of deficiencies.
Structure Colorado Code
Title 4 - Uniform Commercial Code
Article 9 - Secured Transactions
§ 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
§ 4-9-609. 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
§ 4-9-615. 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
§ 4-9-621. Notification of Proposal to Accept Collateral
§ 4-9-622. Effect of Acceptance of Collateral
§ 4-9-623. Right to Redeem Collateral
§ 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