Colorado Senate Bill SB090 Enrolled / Bill

                    SENATE BILL 23-090
BY SENATOR(S) Gardner, Priola, Rich;
also REPRESENTATIVE(S) Snyder, Bird, Epps, Lindsay, Lindstedt,
Marshall, Ricks, McCluskie.
C
ONCERNING THE ENACTMENT OF THE 2022 AMENDMENTS TO THE
"UNIFORM COMMERCIAL CODE".
Be it enacted by the General Assembly of the State of Colorado:
SECTION 1. In Colorado Revised Statutes, 4-1-201, amend (b)
introductory portion, (b)(10), (b)(14), (b)(20)(C), (b)(23), (b)(26), (b)(36),
and (b)(37); and add (b)(15.5) as follows:
4-1-201.  General definitions. (b)  Subject to definitions contained
in other articles of this title
 TITLE 4 that apply to particular articles or parts
thereof OF THIS TITLE 4:
(10)  "Conspicuous", with reference to a term, means so written,
displayed, or presented that a reasonable person against which it is to
operate ought to have noticed it. Whether a term is "conspicuous" or not is
a decision for the court. Conspicuous terms include the following:
NOTE:  This bill has been prepared for the signatures of the appropriate legislative
officers and the Governor.  To determine whether the Governor has signed the bill
or taken other action on it, please consult the legislative status sheet, the legislative
history, or the Session Laws.
________
Capital letters or bold & italic numbers indicate new material added to existing law; dashes
through words or numbers indicate deletions from existing law and such material is not part of
the act. (A)  A heading in capital letters equal to or greater in size than the
surrounding text, or in contrasting type, font, or color to the surrounding
text of the same or lesser size; and
(B)  Language in the body of a record or display in larger type than
the surrounding text, or in contrasting type, font, or color to the surrounding
text of the same size, or set off from surrounding text of the same size by
symbols or other marks that call attention to the language.
(14)  "Delivery", with respect to an electronic document of title,
means voluntary transfer of control; and with respect to an instrument, a
tangible document of title, or 
AN AUTHORITATIVE TANGIBLE COPY OF A
RECORD EVIDENCING
 chattel paper, means voluntary transfer of possession.
(15.5)  "E
LECTRONIC" MEANS RELATING TO TECHNOLOGY HAVING
ELECTRICAL
, DIGITAL, MAGNETIC, WIRELESS, OPTICAL, ELECTROMAGNETIC,
OR SIMILAR CAPABILITIES.
(20)  "Holder" means:
(C)  The person in control, 
OTHER THAN PURSUANT TO SECTION
4-7-106 (g), OF A NEGOTIABLE ELECTRONIC DOCUMENT OF TITLE .
(23)  "Money" means a medium of exchange currently authorized or
adopted by a domestic or foreign government. The term includes a monetary
unit of account established by an intergovernmental organization or by
agreement between two or more countries. T
HE TERM DOES NOT INCLUDE AN
ELECTRONIC RECORD THAT IS A MEDIUM OF EXCHANGE RECORDED AND
TRANSFERABLE IN A SYSTEM THAT EXISTED AND OPERATED FOR THE MEDIUM
OF EXCHANGE BEFORE THE MEDIUM OF EXCHANGE WAS AUTHORIZED OR
ADOPTED BY THE GOVERNMENT
.
(26)  "Person" means an individual, corporation, business trust,
estate, trust, partnership, limited liability company, association, joint
venture, government, government subdivision, agency, or instrumentality,
or any other legal or commercial entity. T
HE TERM INCLUDES A PROTECTED
SERIES
, HOWEVER DENOMINATED , OF AN ENTITY IF THE PROTECTED SERIES
IS ESTABLISHED UNDER THE LAWS OF ANOTHER STATE THAT
:
(a)  L
IMITS, OR LIMITS IF CONDITIONS SPECIFIED UNDER THE LAW ARE
PAGE 2-SENATE BILL 23-090 SATISFIED, THE ABILITY OF A CREDITOR OF THE ENTITY OR OF ANY OTHER
PROTECTED SERIES OF THE ENTITY TO SATISFY A CLAIM FROM ASSETS OF THE
PROTECTED SERIES
; AND
(b)  TREATS THE PROTECTED SERIES AS AN ENTITY .
(36)  "Send", in connection with a writing, record or notice
NOTIFICATION, means to:
(A)  Deposit in the mail, or deliver for transmission, OR TRANSMIT
by any other usual means of communication with postage or cost of
transmission provided for, and properly addressed and, in the case of an
instrument, to an address specified thereon or otherwise agreed, or, if there
is none, ADDRESSED to any address reasonable under the circumstances; or
(B)  In any other way cause to be received any record or notice
within the time it would have arrived if properly sent CAUSE THE RECORD
OR NOTIFICATION TO BE RECEIVED WITHIN THE TIME IT WOULD HAVE BEEN
RECEIVED IF PROPERLY SENT UNDER SUBSECTION
 (b)(36)(A) OF THIS
SECTION
.
(37) (A)  "Signed" includes any symbol executed or adopted withpresent intention to adopt or accept a writing. "SIGN" MEANS, WITH PRESENT
INTENT TO AUTHENTICATE OR ADOPT A RECORD
:
(i)  E
XECUTE OR ADOPT A TANGIBLE SYMBOL ; OR
(ii)  ATTACH TO OR LOGICALLY ASSOCIATE WITH THE RECORD AN
ELECTRONIC SYMBOL
, SOUND, OR PROCESS.
(B)  "S
IGNED", "SIGNING", AND "SIGNATURE" HAVE CORRESPONDING
MEANINGS
.
SECTION 2. In Colorado Revised Statutes, 4-1-204, amend the
introductory portion as follows:
4-1-204.  Value. Except as otherwise provided in articles 3, 4, and
5, 6, AND 12 of this title TITLE 4, a person gives value for rights if the person
acquires them:
PAGE 3-SENATE BILL 23-090 SECTION 3. In Colorado Revised Statutes, 4-1-301, add (c)(9) as
follows:
4-1-301.  Territorial applicability - parties' power to choose
applicable law. (c)  If one of the following provisions of the "Uniform
Commercial Code" specifies the applicable law, that provision governs and
a contrary agreement is effective only to the extent permitted by the law so
specified:
(9)  S
ECTION 4-12-107.
SECTION 4. In Colorado Revised Statutes, amend 4-1-306 as
follows:
4-1-306.  Waiver or renunciation of claim or right after breach.
A claim or right arising out of an alleged breach may be discharged in
whole or in part without consideration by agreement of the aggrieved party
in an authenticated
 A SIGNED record.
SECTION 5. In Colorado Revised Statutes, amend 4-2-102 as
follows:
4-2-102.  Scope - certain security and other transactions excluded
from this article. (1)  Unless the context otherwise requires, this article
applies to transactions in goods; it does not apply to: UNLESS THE CONTEXT
OTHERWISE REQUIRES
, AND EXCEPT AS PROVIDED IN SUBSECTION (3) OF THIS
SECTION
, THIS ARTICLE 2 APPLIES TO TRANSACTIONS IN GOODS AND, IN THE
CASE OF A HYBRID TRANSACTION
, IT APPLIES TO THE EXTENT PROVIDED IN
SUBSECTION 
(2) OF THIS SECTION.
(a)  Any transaction which, although in the form of an unconditional
contract to sell or present sale, is intended to operate only as a security
transaction, nor does this article impair or repeal any statute regulating sales
to consumers, farmers, or other specified classes of buyers; and
(b)  The donation, whether for or without valuable consideration,
acquisition, preparation, transplantation, injection, or transfusion of any
human tissue, organ, or blood or component thereof for or to a human
being.
PAGE 4-SENATE BILL 23-090 (2)  IN A HYBRID TRANSACTION:
(a)  I
F THE SALE-OF-GOODS ASPECTS DO NOT PREDOMINATE , ONLY
THE PROVISIONS OF THIS ARTICLE 
2 WHICH RELATE PRIMARILY TO THE
SALE
-OF-GOODS ASPECTS OF THE TRANSACTION APPLY , AND THE PROVISIONS
THAT RELATE PRIMARILY TO THE TRANSACTION AS A WHOLE DO NOT APPLY
.
(b)  I
F THE SALE-OF-GOODS ASPECTS PREDOMINATE , THIS ARTICLE 2
APPLIES TO THE TRANSACTION BUT DOES NOT PRECLUDE APPLICATION IN
APPROPRIATE CIRCUMSTANCES OF OTHER LAW TO ASPECTS OF THE
TRANSACTION WHICH DO NOT RELATE TO THE SALE OF GOODS
.
(3)  T
HIS ARTICLE 2 DOES NOT:
(a)  A
PPLY TO A TRANSACTION THAT, EVEN THOUGH IN THE FORM OF
AN UNCONDITIONAL CONTRACT TO SELL OR PRESENT SALE
, OPERATES ONLY
TO CREATE A SECURITY INTEREST
; OR
(b)  IMPAIR OR REPEAL A STATUTE REGULATING SALES TO
CONSUMERS
, FARMERS, OR OTHER SPECIFIED CLASSES OF BUYERS.
SECTION 6. In Colorado Revised Statutes, 4-2-106, add (5) as
follows:
4-2-106.  Definitions: "contract" - "agreement" - "contract for
sale" - "sale" - "present sale" - "conforming" to contract -
"termination" - "cancellation" - "hybrid transaction". (5)  "H
YBRID
TRANSACTION
" MEANS A SINGLE TRANSACTION INVOLVING A SALE OF GOODS
AND
:
(a)  T
HE PROVISION OF SERVICES;
(b)  A
 LEASE OF OTHER GOODS; OR
(c)  A SALE, LEASE, OR LICENSE OF PROPERTY OTHER THAN GOODS .
SECTION 7. In Colorado Revised Statutes, 4-2-201, amend (1)
and (2) as follows:
4-2-201.  Formal requirements - statute of frauds. (1)  Except as
PAGE 5-SENATE BILL 23-090 otherwise provided in this section, a contract for the sale of goods for the
price of five hundred dollars or more is not enforceable by way of action or
defense unless there is some writing
 A RECORD sufficient to indicate that a
contract for sale has been made between the parties and signed by the party
against whom enforcement is sought or by his
 THE PARTY'S authorized agent
or broker. A writing RECORD is not insufficient because it omits or
incorrectly states a term agreed upon, but the contract is not enforceable
under this paragraph
 SUBSECTION (1) beyond the quantity of goods shown
in such writing THE RECORD.
(2)  Between merchants, if within a reasonable time a writing
RECORD in confirmation of the contract and sufficient against the sender is
received and the party receiving it has reason to know its contents, it
satisfies the requirements of subsection (1) of this section against such
 THE
party unless written notice IN A RECORD of objection to its contents is given
within ten days after it is received.
SECTION 8. In Colorado Revised Statutes, 4-2-202, amend the
introductory portion and (b) as follows:
4-2-202.  Final expression - parol or extrinsic evidence. Terms
with respect to which the confirmatory memoranda of the parties agree or
which are otherwise set forth in a writing
 RECORD intended by the parties
as a final expression of their agreement with respect to such terms as are
included therein may not be contradicted by evidence of any prior
agreement or of a contemporaneous oral agreement but may be explained
or supplemented:
(b)  By evidence of consistent additional terms unless the court finds
the writing
 RECORD to have been intended also as a complete and exclusive
statement of the terms of the agreement.
SECTION 9. In Colorado Revised Statutes, amend 4-2-203 as
follows:
4-2-203.  Seals inoperative. The affixing of a seal to a writing
RECORD evidencing a contract for sale or an offer to buy or sell goods does
not constitute the writing RECORDING OF a sealed instrument, and the law
with respect to sealed instruments does not apply to such a contract or offer.
PAGE 6-SENATE BILL 23-090 SECTION 10. In Colorado Revised Statutes, amend 4-2-205 as
follows:
4-2-205.  Firm offers. An offer by a merchant to buy or sell goods
in a signed writing RECORD which by its terms gives assurance that it will
be held open is not revocable, for lack of consideration, during the time
stated or, if no time is stated, for a reasonable time, but in no event may
such period of irrevocability exceed three months; but any such term of
assurance on a form supplied by the offeree must be separately signed by
the offeror.
SECTION 11. In Colorado Revised Statutes, 4-2-209, amend (2)
as follows:
4-2-209.  Modification, rescission, and waiver. (2)  A signed
agreement which excludes modification or rescission except by a signed
writing 
OR OTHER SIGNED RECORD cannot be otherwise modified or
rescinded, but except as between merchants such a requirement on a form
supplied by the merchant must be separately signed by the other party.
SECTION 12. In Colorado Revised Statutes, amend 4-2.5-102 as
follows:
4-2.5-102.  Scope. (1)  This article ARTICLE 2.5 applies to any
transaction, regardless of form, that creates a lease, 
AND, IN THE CASE OF A
HYBRID LEASE
, THIS ARTICLE 2.5 APPLIES TO THE EXTENT PROVIDED IN
SUBSECTION 
(2) OF THIS SECTION.
(2)  I
N A HYBRID LEASE:
(a)  I
F THE LEASE-OF-GOODS ASPECTS DO NOT PREDOMINATE :
(i)  O
NLY THE PROVISIONS OF THIS ARTICLE 2.5 WHICH RELATE
PRIMARILY TO THE LEASE
-OF-GOODS ASPECTS OF THE TRANSACTION APPLY ,
AND THE PROVISIONS THAT RELATE PRIMARILY TO THE TRANSACTION AS A
WHOLE DO NOT APPLY
;
(ii)  S
ECTION 4-2.5-209 APPLIES IF THE LEASE IS A FINANCE LEASE;
AND
PAGE 7-SENATE BILL 23-090 (iii)  SECTION 4-2.5-407 APPLIES TO THE PROMISES OF THE LESSEE IN
A FINANCE LEASE TO THE EXTENT THE PROMISES ARE CONSIDERATION FOR
THE RIGHT TO POSSESSION AND USE OF THE LEASED GOODS
; AND
(b)  IF THE LEASE-OF-GOODS ASPECTS PREDOMINATE , THIS ARTICLE
2.5 APPLIES TO THE TRANSACTION BUT DOES NOT PRECLUDE APPLICATION IN
APPROPRIATE CIRCUMSTANCES OF OTHER LAW TO ASPECTS OF THE LEASE
WHICH DO NOT RELATE TO THE LEASE OF GOODS
.
SECTION 13. In Colorado Revised Statutes, 4-2.5-103, amend (1)
introductory portion; and add (1)(h.5) as follows:
4-2.5-103.  Definitions and index of definitions. (1)  In this article
ARTICLE 2.5, unless the context otherwise requires:
(h.5)  "H
YBRID LEASE" MEANS A SINGLE TRANSACTION INVOLVING A
LEASE OF GOODS AND
:
(i)  T
HE PROVISION OF SERVICES;
(ii)  A
 SALE OF OTHER GOODS; OR
(iii)  A SALE, LEASE, OR LICENSE OF PROPERTY OTHER THAN GOODS .
SECTION 14. In Colorado Revised Statutes, amend 4-2.5-107 as
follows:
4-2.5-107.  Waiver or renunciation of claim or right after default.
Any claim or right arising out of an alleged default or breach of warranty
may be discharged in whole or in part without consideration by a written
waiver or renunciation IN A signed and RECORD delivered by the aggrieved
party.
SECTION 15. In Colorado Revised Statutes, 4-2.5-201, amend
(1)(b), (3), and (5)(a) as follows:
4-2.5-201.  Statute of frauds. (1)  A lease contract is not enforceable
by way of action or defense unless:
(b)  There is a writing RECORD, signed by the party against whom
PAGE 8-SENATE BILL 23-090 enforcement is sought or by that party's authorized agent, sufficient to
indicate that a lease contract has been made between the parties and to
describe the goods leased and the lease term.
(3)  A writing
 RECORD is not insufficient because it omits or
incorrectly states a term agreed upon, but the lease contract is not
enforceable under subsection (1)(b) of this section beyond the lease term
and the quantity of goods shown in the writing
 RECORD.
(5)  The lease term under a lease contract referred to in subsection
(4) of this section is:
(a)  If there is a writing RECORD signed by the party against whom
enforcement is sought or by that party's authorized agent specifying the
lease term, the term so specified;
SECTION 16. In Colorado Revised Statutes, 4-2.5-202, amend (1)
introductory portion and (1)(b) as follows:
4-2.5-202.  Final written expression: Parol or extrinsic evidence.
(1)  Terms with respect to which the confirmatory memoranda of the parties
agree or which are otherwise set forth in a writing
 RECORD intended by the
parties as a final expression of their agreement with respect to such terms
as are included therein may not be contradicted by evidence of any prior
agreement or of a contemporaneous oral agreement but may be explained
or supplemented:
(b)  By evidence of consistent additional terms unless the court finds
the writing
 RECORD to have been intended also as a complete and exclusive
statement of the terms of the agreement.
SECTION 17. In Colorado Revised Statutes, amend 4-2.5-203 as
follows:
4-2.5-203.  Seals inoperative. The affixing of a seal to a writing
RECORD evidencing a lease contract or an offer to enter into a lease contract
does not render the writing RECORD a sealed instrument and the law with
respect to sealed instruments does not apply to the lease contract or offer.
SECTION 18. In Colorado Revised Statutes, amend 4-2.5-205 as
PAGE 9-SENATE BILL 23-090 follows:
4-2.5-205.  Firm offers. An offer by a merchant to lease goods to or
from another person in a signed writing RECORD that by its terms gives
assurance it will be held open is not revocable, for lack of consideration,
during the time stated or, if no time is stated, for a reasonable time, but in
no event may the period of irrevocability exceed three months. Any such
term of assurance on a form supplied by the offeree must be separately
signed by the offeror.
SECTION 19. In Colorado Revised Statutes, 4-2.5-208, amend (2)
as follows:
4-2.5-208.  Modification, rescission, and waiver. (2)  A signed
lease agreement that excludes modification or rescission except by a signed
writing
 RECORD may not be otherwise modified or rescinded, but, except as
between merchants, such a requirement on a form supplied by a merchant
must be separately signed by the other party.
SECTION 20. In Colorado Revised Statutes, 4-3-104, amend (a)(3)
as follows:
4-3-104.  Negotiable instrument. (a)  Except as provided in
subsections (c) and (d) of this section, "negotiable instrument" means an
unconditional promise or order to pay a fixed amount of money, with or
without interest or other charges described in the promise or order, if it:
(3)  Does not state any other undertaking or instruction by the person
promising or ordering payment to do any act in addition to the payment of
money, but the promise or order may contain: (i) an undertaking or power
to give, maintain, or protect collateral to secure payment; (ii) an
authorization or power to the holder to confess judgment or realize on or
dispose of collateral; or
 (iii) a waiver of the benefit of any law intended for
the advantage or protection of an obligor; (iv) 
A TERM THAT SPECIFIES THE
LAW THAT GOVERNS THE PROMISE OR ORDER
; OR (v) AN UNDERTAKING TO
RESOLVE IN A SPECIFIED FORUM A DISPUTE CONCERNING THE PROMISE OR
ORDER
.
SECTION 21. In Colorado Revised Statutes, 4-3-105, amend (a)
as follows:
PAGE 10-SENATE BILL 23-090 4-3-105.  Issue of instrument. (a)  "Issue" means:
(1)  The first delivery of an instrument by the maker or drawer,
whether to a holder or nonholder, for the purpose of giving rights on the
instrument to any person; 
OR
(2)  IF AGREED BY THE PAYEE, THE FIRST TRANSMISSION BY THE
DRAWER TO THE PAYEE OF AN IMAGE OF AN ITEM AND INFORMATION
DERIVED FROM THE ITEM THAT ENABLES THE DEPOSITARY BANK TO COLLECT
THE ITEM BY TRANSFERRING OR PRESENTING UNDER FEDERAL LAW AN
ELECTRONIC CHECK
.
SECTION 22. In Colorado Revised Statutes, amend 4-3-401 as
follows:
4-3-401.  Signature necessary for liability on instrument. (a) A
person is not liable on an instrument unless (i) the person signed the
instrument or (ii) the person is represented by an agent or representative
who signed the instrument and the signature is binding on the represented
person under section 4-3-402.
(b)  A signature may be made (i) manually or by means of a device
or machine, and (ii) by the use of any name, including a trade or assumed
name, or by a word, mark, or symbol executed or adopted by a person with
present intention to authenticate a writing.
SECTION 23. In Colorado Revised Statutes, 4-3-604, amend (a)
as follows:
4-3-604.  Discharge by cancellation or renunciation. (a)  A person
entitled to enforce an instrument, with or without consideration, may
discharge the obligation of a party to pay the instrument (i) by an intentional
voluntary act, such as surrender of the instrument to the party, destruction,
mutilation, or cancellation of the instrument, cancellation or striking out of
the party's signature, or the addition of words to the instrument indicating
discharge or (ii) by agreeing not to sue or otherwise renouncing rights
against the party by a signed writing
 RECORD. THE OBLIGATION OF A PARTY
TO PAY A CHECK IS NOT DISCHARGED SOLELY BY DESTRUCTION OF THE
CHECK IN CONNECTION WITH A PROCESS IN WHICH INFORMATION IS
EXTRACTED FROM THE CHECK AND AN IMAGE OF THE CHECK IS MADE AND
,
PAGE 11-SENATE BILL 23-090 SUBSEQUENTLY, THE INFORMATION AND IMAGE ARE TRANSMITTED FOR
PAYMENT
.
SECTION 24. In Colorado Revised Statutes, 4-4.5-103, amend (a)
introductory portion and (a)(1) introductory portion as follows:
4-4.5-103.  Payment order - definitions. (a)  In this article
 ARTICLE
4.5:
(1)  "Payment order" means an instruction of a sender to a receiving
bank, transmitted orally electronically, or in writing OR IN A RECORD, to pay,
or to cause another bank to pay, a fixed or determinable amount of money
to a beneficiary if:
SECTION 25. In Colorado Revised Statutes, amend 4-4.5-201 as
follows:
4-4.5-201.  Security procedure. "Security procedure" means a
procedure established by agreement of a customer and a receiving bank for
the purpose of (i) verifying that a payment order or communication
amending or cancelling a payment order is that of the customer or (ii)
detecting error in the transmission or the content of the payment order or
communication. A security procedure 
MAY IMPOSE AN OBLIGATION ON THE
RECEIVING BANK OR THE CUSTOMER AND
 may require the use of algorithms
or other codes, identifying words, or
 numbers, SYMBOLS, SOUNDS,
BIOMETRICS, encryption, callback procedures, or similar security devices.
Comparison of a signature on a payment order or communication with an
authorized specimen signature of the customer 
OR REQUIRING A PAYMENT
ORDER TO BE SENT FROM A KNOWN E
-MAIL ADDRESS, IP ADDRESS, OR
TELEPHONE NUMBER
 is not by itself a security procedure.
SECTION 26. In Colorado Revised Statutes, 4-4.5-202, amend (b)
and (c) as follows:
4-4.5-202.  Authorized and verified payment orders. (b)  If a bank
and its customer have agreed that the authenticity of payment orders issued
to the bank in the name of the customer as sender will be verified pursuant
to a security procedure, a payment order received by the receiving bank is
effective as the order of the customer, whether or not authorized, if (i) the
security procedure is a commercially reasonable method of providing
PAGE 12-SENATE BILL 23-090 security against unauthorized payment orders and (ii) the bank proves that
it accepted the payment order in good faith and in compliance with 
THE
BANK
'S OBLIGATIONS UNDER the security procedure and any written
agreement or instruction of the customer, EVIDENCED BY A RECORD ,
restricting acceptance of payment orders issued in the name of the customer.
The bank is not required to follow an instruction that violates a written
 AN
agreement with the customer, EVIDENCED BY A RECORD, or notice of which
is not received at a time and in a manner affording the bank a reasonable
opportunity to act on it before the payment order is accepted.
(c)  Commercial reasonableness of a security procedure is a question
of law to be determined by considering the wishes of the customer
expressed to the bank; the circumstances of the customer known to the
bank, including the size, type, and frequency of payment orders normally
issued by the customer to the bank; alternative security procedures offered
to the customer; and security procedures in general use by customers and
receiving banks similarly situated. A security procedure is deemed to be
commercially reasonable if (i) the security procedure was chosen by the
customer after the bank offered, and the customer refused, a security
procedure that was commercially reasonable for that customer and (ii) the
customer expressly agreed in writing
 A RECORD to be bound by any payment
order, whether or not authorized, issued in its name and accepted by the
bank in compliance with 
THE BANK'S OBLIGATIONS UNDER the security
procedure chosen by the customer.
SECTION 27. In Colorado Revised Statutes, 4-4.5-203, amend
(a)(1) as follows:
4-4.5-203.  Unenforceability of certain verified payment orders.
(a)  If an accepted payment order is not, under section 4-4.5-202 (a), an
authorized order of a customer identified as sender, but is effective as an
order of the customer pursuant to section 4-4.5-202 (b), the following rules
apply:
(1)  By express written
 agreement EVIDENCED BY A RECORD , the
receiving bank may limit the extent to which it is entitled to enforce or
retain payment of the payment order.
SECTION 28. In Colorado Revised Statutes, 4-4.5-207, amend
(c)(2) as follows:
PAGE 13-SENATE BILL 23-090 4-4.5-207.  Misdescription of beneficiary. (c)  If (i) a payment
order described in subsection (b) of this section is accepted, (ii) the
originator's payment order described the beneficiary inconsistently by name
and number, and (iii) the beneficiary's bank pays the person identified by
number as permitted by subsection (b)(1) of this section, the following rules
apply:
(2)  If the originator is not a bank and proves that the person
identified by number was not entitled to receive payment from the
originator, the originator is not obliged to pay its order unless the
originator's bank proves that the originator, before acceptance of the
originator's order, had notice that payment of a payment order issued by the
originator might be made by the beneficiary's bank on the basis of an
identifying or bank account number even if it identifies a person different
from the named beneficiary. Proof of notice may be made by any admissible
evidence. The originator's bank satisfies the burden of proof if it proves that
the originator, before the payment order was accepted, signed a writing
RECORD stating the information to which the notice relates.
SECTION 29. In Colorado Revised Statutes, 4-4.5-208, amend
(b)(2) as follows:
4-4.5-208.  Misdescription of intermediary bank or beneficiary's
bank. (b)  This subsection (b) applies to a payment order identifying an
intermediary bank or the beneficiary's bank both by name and an identifying
number if the name and number identify different persons.
(2)  If the sender is not a bank and the receiving bank proves that the
sender, before the payment order was accepted, had notice that the receiving
bank might rely on the number as the proper identification of the
intermediary or beneficiary's bank even if it identifies a person different
from the bank identified by name, the rights and obligations of the sender
and the receiving bank are governed by subsection (b)(1) of this section, as
though the sender were a bank. Proof of notice may be made by any
admissible evidence. The receiving bank satisfies the burden of proof if it
proves that the sender, before the payment order was accepted, signed a
writing
 RECORD stating the information to which the notice relates.
SECTION 30. In Colorado Revised Statutes, 4-4.5-210, amend (a)
as follows:
PAGE 14-SENATE BILL 23-090 4-4.5-210.  Rejection of payment order. (a)  A payment order is
rejected by the receiving bank by a notice of rejection transmitted to the
sender orally electronically, or in writing A RECORD. A notice of rejection
need not use any particular words and is sufficient if it indicates that the
receiving bank is rejecting the order or will not execute or pay the order.
Rejection is effective when the notice is given if transmission is by a means
that is reasonable in the circumstances. If notice of rejection is given by a
means that is not reasonable, rejection is effective when the notice is
received. If an agreement of the sender and receiving bank establishes the
means to be used to reject a payment order, (i) any means complying with
the agreement is reasonable and (ii) any means not complying is not
reasonable unless no significant delay in receipt of the notice resulted from
the use of the noncomplying means.
SECTION 31. In Colorado Revised Statutes, 4-4.5-211, amend (a)
as follows:
4-4.5-211.  Cancellation and amendment of payment order. (a)  A
communication of the sender of a payment order cancelling or amending the
order may be transmitted to the receiving bank orally electronically,
 or in
writing A RECORD. If a security procedure is in effect between the sender
and the receiving bank, the communication is not effective to cancel or
amend the order unless the communication is verified pursuant to the
security procedure or the bank agrees to the cancellation or amendment.
SECTION 32. In Colorado Revised Statutes, 4-4.5-305, amend (c)
and (d) as follows:
4-4.5-305.  Liability for late or improper execution or failure to
execute payment order. (c)  In addition to the amounts payable under
subsections (a) and (b) of this section, damages, including consequential
damages, are recoverable to the extent provided in an express written
agreement of the receiving bank, EVIDENCED BY A RECORD.
(d)  If a receiving bank fails to execute a payment order it was
obliged by express agreement to execute, the receiving bank is liable to the
sender for its expenses in the transaction and for incidental expenses and
interest losses resulting from the failure to execute. Additional damages,
including consequential damages, are recoverable to the extent provided in
an express written agreement of the receiving bank, 
EVIDENCED BY A
PAGE 15-SENATE BILL 23-090 RECORD, but are not otherwise recoverable.
SECTION 33. In Colorado Revised Statutes, amend 4-5-104 as
follows:
4-5-104.  Formal requirements. A letter of credit, confirmation,
advice, transfer, amendment, or cancellation may be issued in any form that
is a 
SIGNED record. and is authenticated (i) by a signature or (ii) in
accordance with the agreement of the parties or the standard practice
referred to in section 4-5-108 (e).
SECTION 34. In Colorado Revised Statutes, amend 4-5-116 as
follows:
4-5-116.  Choice of law and forum. (a)  The liability of an issuer,
nominated person, or adviser for action or omission is governed by the law
of the jurisdiction chosen by an agreement in the form of a record signed or
otherwise authenticated by the affected parties in the manner provided in
section 4-5-104 or by a provision in the person's letter of credit,
confirmation, or other undertaking. The jurisdiction whose law is chosen
need not bear any relation to the transaction.
(b)  Unless subsection (a) of this section applies, the liability of an
issuer, nominated person, or adviser for action or omission is governed by
the law of the jurisdiction in which the person is located. The person is
considered to be located at the address indicated in the person's undertaking.
If more than one address is indicated, the person is considered to be located
at the address from which the person's undertaking was issued. For the
purpose of jurisdiction, choice of law, and recognition of interbranch letters
of credit, but not enforcement of a judgment, all branches of a bank are
considered separate juridical entities and a bank is considered to be located
at the place where its relevant branch is considered to be located under this
subsection (b).
(c)  Except as otherwise provided in this subsection (c), the liability
of an issuer, nominated person, or adviser is governed by any rules of
custom or practice, such as the "Uniform Customs and Practice for
Documentary Credits", to which the letter of credit, confirmation, or other
undertaking is expressly made subject. If (i) this article would govern the
liability of an issuer, nominated person, or adviser under subsection (a) or
PAGE 16-SENATE BILL 23-090 (b) of this section, (ii) the relevant undertaking incorporates rules of custom
or practice, and (iii) there is conflict between this article and those rules as
applied to that undertaking, those rules govern except to the extent of any
conflict with the nonvariable provisions specified in section 4-5-103 (c)
FOR THE PURPOSE OF JURISDICTION, CHOICE OF LAW, AND RECOGNITION OF
INTERBRANCH LETTERS OF CREDIT
, BUT NOT ENFORCEMENT OF A JUDGMENT ,
ALL BRANCHES OF A BANK ARE CONSIDERED SEPARATE JURIDICAL ENTITIES ,
AND A BANK IS CONSIDERED TO BE LOCATED AT THE PLACE WHERE ITS
RELEVANT BRANCH IS CONSIDERED TO BE LOCATED UNDER SUBSECTION
 (d)
OF THIS SECTION.
(d)  If there is conflict between this article and article 3, 4, 4.5, or 9
of this title, this article governs A BRANCH OF A BANK IS CONSIDERED TO BE
LOCATED AT THE ADDRESS INDICATED IN THE BRANCH
'S UNDERTAKING. IF
MORE THAN ONE ADDRESS IS INDICATED
, THE BRANCH IS CONSIDERED TO BE
LOCATED AT THE ADDRESS FROM WHICH THE UNDERTAKING WAS ISSUED
.
(e)  The forum for settling disputes arising out of an undertaking
within this article may be chosen in the manner and with the binding effect
that governing law may be chosen in accordance with subsection (a) of this
section EXCEPT AS OTHERWISE PROVIDED IN THIS SUBSECTION (e), THE
LIABILITY OF AN ISSUER
, NOMINATED PERSON, OR ADVISER IS GOVERNED BY
ANY RULES OF CUSTOM OR PRACTICE
, SUCH AS THE "UNIFORM CUSTOMS AND
PRACTICE FOR DOCUMENTARY CREDITS", TO WHICH THE LETTER OF CREDIT,
CONFIRMATION, OR OTHER UNDERTAKING IS EXPRESSLY MADE SUBJECT . IF
(i) THIS ARTICLE 5 WOULD GOVERN THE LIABILITY OF AN ISSUER, NOMINATED
PERSON
, OR ADVISER UNDER SUBSECTION (a) OR (b) OF THIS SECTION; (ii)
THE RELEVANT UNDERTAKING INCORPORATES RULES OF CUSTOM OR
PRACTICE
; AND (iii) THERE IS CONFLICT BETWEEN THIS ARTICLE 5 AND THOSE
RULES AS APPLIED TO THAT UNDERTAKING
, THOSE RULES GOVERN EXCEPT
TO THE EXTENT OF ANY CONFLICT WITH THE NONVARIABLE PROVISIONS
SPECIFIED IN SECTION 
4-5-103 (c).
(f)  I
F THERE IS CONFLICT BETWEEN THIS ARTICLE 5 AND ARTICLE 3,
4,
 4.5, OR 9 OF THIS TITLE 4, THIS ARTICLE 5 GOVERNS.
(g)  T
HE FORUM FOR SETTLING DISPUTES ARISING OUT OF AN
UNDERTAKING WITHIN THIS ARTICLE 
5 MAY BE CHOSEN IN THE MANNER AND
WITH THE BINDING EFFECT THAT GOVERNING LAW MAY BE CHOSEN IN
ACCORDANCE WITH SUBSECTION
 (a) OF THIS SECTION.
PAGE 17-SENATE BILL 23-090 SECTION 35. In Colorado Revised Statutes, 4-7-102, amend (a)
introductory portion; and repeal (a)(10) and (a)(12) as follows:
4-7-102.  Definitions and index of definitions. (a)  In this article
ARTICLE 7, unless the context otherwise requires:
(10)  "Record" means information that is inscribed on a tangible
medium or that is stored in an electronic or other medium and is retrievable
in perceivable form.
(12)  "Sign" means, with present intent to authenticate or adopt a
record:
(A)  To execute or adopt a tangible symbol; or
(B)  To attach to or logically associate with the record an electronic
sound, symbol, or process.
SECTION 36. In Colorado Revised Statutes, 4-7-106, amend (b)
introductory portion and (b)(4); and add (c), (d), (e), (f), (g), (h), and (i) as
follows:
4-7-106.  Control of electronic document of title. (b)  A system
satisfies subsection (a) of this section, and a person is deemed to have HAS
control of an electronic document of title, if the document is created, stored,	and assigned
 TRANSFERRED in such a manner that:
(4)  Copies or amendments that add or change an identified assignee
TRANSFEREE of the authoritative copy can be made only with the consent of
the person asserting control;
(c)  A
 SYSTEM SATISFIES SUBSECTION (a) OF THIS SECTION, AND A
PERSON HAS CONTROL OF AN ELECTRONIC DOCUMENT OF TITLE
, IF AN
AUTHORITATIVE ELECTRONIC COPY OF THE DOCUMENT
, A RECORD ATTACHED
TO OR LOGICALLY ASSOCIATED WITH THE ELECTRONIC COPY
, OR A SYSTEM
IN WHICH THE ELECTRONIC COPY IS RECORDED
:
(1)  E
NABLES THE PERSON READILY TO IDENTIFY EACH ELECTRONIC
COPY AS EITHER AN AUTHORITATIVE COPY OR A NONAUTHORITATIVE COPY
;
PAGE 18-SENATE BILL 23-090 (2)  ENABLES THE PERSON READILY TO IDENTIFY ITSELF IN ANY WAY ,
INCLUDING BY NAME, IDENTIFYING NUMBER, CRYPTOGRAPHIC KEY, OFFICE,
OR ACCOUNT NUMBER , AS THE PERSON TO WHICH EACH AUTHORITATIVE
ELECTRONIC COPY WAS ISSUED OR TRANSFERRED
; AND
(3)  GIVES THE PERSON EXCLUSIVE POWER, SUBJECT TO SUBSECTION
(d) OF THIS SECTION, TO:
(A)  P
REVENT OTHERS FROM ADDING OR CHANGING THE PERSON TO
WHICH EACH AUTHORITATIVE ELECTRONIC COPY HAS BEEN ISSUED OR
TRANSFERRED
; AND
(B)  TRANSFER CONTROL OF EACH AUTHORITATIVE ELECTRONIC
COPY
.
(d)  S
UBJECT TO SUBSECTION (e) OF THIS SECTION, A POWER IS
EXCLUSIVE UNDER SUBSECTIONS
 (c)(3)(A) AND (c)(3)(B) OF THIS SECTION
EVEN IF
:
(1)  T
HE AUTHORITATIVE ELECTRONIC COPY, A RECORD ATTACHED TO
OR LOGICALLY ASSOCIATED WITH THE AUTHORITATIVE ELECTRONIC COPY
,
OR A SYSTEM IN WHICH THE AUTHORITATIVE ELECTRONIC COPY IS RECORDED
LIMITS THE USE OF THE DOCUMENT OF TITLE OR HAS A PROTOCOL THAT IS
PROGRAMMED TO CAUSE A CHANGE
, INCLUDING A TRANSFER OR LOSS OF
CONTROL
; OR
(2)  THE POWER IS SHARED WITH ANOTHER PERSON .
(e)  A
 POWER OF A PERSON IS NOT SHARED WITH ANOTHER PERSON
UNDER SUBSECTION
 (d)(2) OF THIS SECTION AND THE PERSON'S POWER IS NOT
EXCLUSIVE IF
:
(1)  T
HE PERSON CAN EXERCISE THE POWER ONLY IF THE POWER ALSO
IS EXERCISED BY THE OTHER PERSON
; AND
(2)  THE OTHER PERSON:
(A)  C
AN EXERCISE THE POWER WITHOUT EXERCISE OF THE POWER BY
THE PERSON
; OR
PAGE 19-SENATE BILL 23-090 (B)  IS THE TRANSFEROR TO THE PERSON OF AN INTEREST IN THE
DOCUMENT OF TITLE
.
(f)  I
F A PERSON HAS THE POWERS SPECIFIED IN SUBSECTIONS
(c)(3)(A) AND (c)(3)(B) OF THIS SECTION, THE POWERS ARE PRESUMED TO
BE EXCLUSIVE
.
(g)  A
 PERSON HAS CONTROL OF AN ELECTRONIC DOCUMENT OF TITLE
IF ANOTHER PERSON
, OTHER THAN THE TRANSFEROR TO THE PERSON OF AN
INTEREST IN THE DOCUMENT
:
(1)  H
AS CONTROL OF THE DOCUMENT AND ACKNOWLEDGES THAT IT
HAS CONTROL ON BEHALF OF THE PERSON
; OR
(2)  OBTAINS CONTROL OF THE DOCUMENT AFTER HAVING
ACKNOWLEDGED THAT IT WILL OBTAIN CONTROL OF THE DOCUMENT ON
BEHALF OF THE PERSON
.
(h)  A
 PERSON THAT HAS CONTROL UNDER THIS SECTION IS NOT
REQUIRED TO ACKNOWLEDGE THAT IT HAS CONTROL ON BEHALF OF ANOTHER
PERSON
.
(i)  I
F A PERSON ACKNOWLEDGES THAT IT HAS OR WILL OBTAIN
CONTROL ON BEHALF OF ANOTHER PERSON
, UNLESS THE PERSON OTHERWISE
AGREES OR LAW OTHER THAN THIS ARTICLE 
7 OR ARTICLE 9 OF THIS TITLE 4
OTHERWISE PROVIDES, THE PERSON DOES NOT OWE ANY DUTY TO THE OTHER
PERSON AND IS NOT REQUIRED TO CONFIRM THE ACKNOWLEDGMENT TO ANY
OTHER PERSON
.
SECTION 37. In Colorado Revised Statutes, 4-8-102, amend (a)
introductory portion, (a)(6)(i), and (b) as follows:
4-8-102.  Definitions. (a)  In this article
 ARTICLE 8:
(6)  "Communicate" means to:
(i)  Send a signed writing
 RECORD; or
(b)  Other THE FOLLOWING definitions applying to IN this article
ARTICLE 8 and the sections in which they appear are OTHER ARTICLES APPLY
PAGE 20-SENATE BILL 23-090 TO THIS ARTICLE 8:
Appropriate person Section 4-8-107
Control Section 4-8-106
C
ONTROLLABLE ACCOUNT	SECTION 4-9-102
C
ONTROLLABLE ELECTRONIC RECORD	SECTION 4-12-102
C
ONTROLLABLE PAYMENT INTANGIBLE	SECTION 4-9-102
Delivery Section 4-8-301
Investment company security Section 4-8-103
Issuer Section 4-8-201
Overissue Section 4-8-210
Protected purchaser Section 4-8-303
Securities account Section 4-8-501
SECTION 38. In Colorado Revised Statutes, 4-8-103, add (h) as
follows:
4-8-103.  Rules for determining whether certain obligations and
interests are securities or financial assets. (h)  A
 CONTROLLABLE
ACCOUNT
, CONTROLLABLE ELECTRONIC RECORD , OR CONTROLLABLE
PAYMENT INTANGIBLE IS NOT A FINANCIAL ASSET UNLESS SECTION 
4-8-102
(a)(9)(iii) 
APPLIES.
SECTION 39. In Colorado Revised Statutes, 4-8-106, amend
(d)(3); and add (h) and (i) as follows:
4-8-106.  Control. (d)  A purchaser has "control" of a security
entitlement if:
(3)  Another person, has control of the security entitlement on behalf
PAGE 21-SENATE BILL 23-090 of the purchaser or, having previously acquired control of the security
entitlement, acknowledges that it has control on behalf of the purchaser.
OTHER THAN THE TRANSFEROR TO THE PURCHASER OF AN INTEREST IN THE
SECURITY ENTITLEMENT
:
(A)  H
AS CONTROL OF THE SECURITY ENTITLEMENT AND
ACKNOWLEDGES THAT IT HAS CONTROL ON BEHALF OF THE PURCHASER
; OR
(B)  OBTAINS CONTROL OF THE SECURITY ENTITLEMENT AFTER
HAVING ACKNOWLEDGED THAT IT WILL OBTAIN CONTROL OF THE SECURITY
ENTITLEMENT ON BEHALF OF THE PURCHASER
.
(h)  A
 PERSON THAT HAS CONTROL UNDER THIS SECTION IS NOT
REQUIRED TO ACKNOWLEDGE THAT IT HAS CONTROL ON BEHALF OF A
PURCHASER
.
(i)  I
F A PERSON ACKNOWLEDGES THAT IT HAS OR WILL OBTAIN
CONTROL ON BEHALF OF A PURCHASER
, UNLESS THE PERSON OTHERWISE
AGREES OR LAW OTHER THAN THIS ARTICLE 
8 OR ARTICLE 9 OF THIS TITLE 4
OTHERWISE PROVIDES, THE PERSON DOES NOT OWE ANY DUTY TO THE
PURCHASER AND IS NOT REQUIRED TO CONFIRM THE ACKNOWLEDGMENT TO
ANY OTHER PERSON
.
SECTION 40. In Colorado Revised Statutes, 4-8-110, add (g) as
follows:
4-8-110.  Applicability - choice of law. (g)  T
HE LOCAL LAW OF THE
ISSUER
'S JURISDICTION OR THE SECURITIES INTERMEDIARY 'S JURISDICTION
GOVERNS A MATTER OR TRANSACTION SPECIFIED IN SUBSECTION
 (a) OR (b)
OF THIS SECTION EVEN IF THE MATTER OR TRANSACTION DOES NOT BEAR ANY
RELATION TO THE JURISDICTION
.
SECTION 41. In Colorado Revised Statutes, 4-8-303, amend (b)
as follows:
4-8-303.  Protected purchaser. (b)  In addition to acquiring the
rights of a purchaser, A protected purchaser also acquires its interest in the
security free of any adverse claim.
SECTION 42. In Colorado Revised Statutes, 4-9-102, amend (a)
PAGE 22-SENATE BILL 23-090 introductory portion, (a)(2), (a)(3), (a)(4)(A), (a)(11), (a)(42), (a)(47),
(a)(61), (a)(66), and (b); repeal (a)(7), (a)(31), (a)(77), and (a)(81); and add
(a)(7.3), (a)(7.5), (a)(27.5), (a)(27.7), (a)(31.5), (a)(54.5), and (a)(81.5) as
follows:
4-9-102.  Definitions and index of definitions. (a)  In this article
ARTICLE 9:
(2)  "Account", except as used in "account for", "
ACCOUNT
STATEMENT
", "ACCOUNT TO", "COMMODITY ACCOUNT " IN SUBSECTION
(a)(14) OF THIS SECTION, "CUSTOMER'S ACCOUNT", "DEPOSIT ACCOUNT" IN
SUBSECTION
 (a)(29) OF THIS SECTION, "ON ACCOUNT OF", AND "STATEMENT
OF ACCOUNT
", means a right to payment of a monetary obligation, whether
or not earned by performance, (i) for property that has been or is to be sold,
leased, licensed, assigned, or otherwise disposed of; (ii) for services
rendered or to be rendered; (iii) for a policy of insurance issued or to be
issued; (iv) for a secondary obligation incurred or to be incurred; (v) for
energy provided or to be provided; (vi) for the use or hire of a vessel under
a charter or other contract; (vii) arising out of the use of a credit or charge
card or information contained on or for use with the card; or (viii) as
winnings in a lottery or other game of chance operated or sponsored by a
state, governmental unit of a state, or person licensed or authorized to
operate the game by a state or governmental unit of a state. The term
includes 
CONTROLLABLE ACCOUNTS AND health-care-insurance receivables.
The term does not include (i) rights to payment evidenced by
 chattel paper;
or an instrument, (ii) commercial tort claims; (iii) deposit accounts; (iv)
investment property; (v) letter-of-credit rights or letters of credit; or (vi)
rights to payment for money or funds advanced or sold, other than rights
arising out of the use of a credit or charge card or information contained on
or for use with the card; 
OR (vii) RIGHTS TO PAYMENT EVIDENCED BY AN
INSTRUMENT
.
(3)  "Account debtor" means a person obligated on an account,
chattel paper, or general intangible. The term does not include persons
obligated to pay a negotiable instrument, even if the 
NEGOTIABLE instrument
constitutes part of
 EVIDENCES chattel paper.
(4)  "Accounting", except as used in "accounting for", means a
record:
PAGE 23-SENATE BILL 23-090 (A)  Authenticated SIGNED by a secured party;
(7)  "Authenticate" means:
(A)  To sign; or
(B)  With present intent to adopt or accept a record, to attach to or
logically associate with the record an electronic sound, symbol, or process.
(7.3)  "ASSIGNEE", EXCEPT AS USED IN "ASSIGNEE FOR BENEFIT OF
CREDITORS
", MEANS A PERSON (i) IN WHOSE FAVOR A SECURITY INTEREST
THAT SECURES AN OBLIGATION IS CREATED OR PROVIDED FOR UNDER A
SECURITY AGREEMENT
, WHETHER OR NOT THE OBLIGATION IS OUTSTANDING
OR
 (ii) TO WHICH AN ACCOUNT, CHATTEL PAPER, PAYMENT INTANGIBLE, OR
PROMISSORY NOTE HAS BEEN SOLD
. THE TERM INCLUDES A PERSON TO
WHICH A SECURITY INTEREST HAS BEEN TRANSFERRED BY A SECURED PARTY
.
(7.5)  "A
SSIGNOR" MEANS A PERSON THAT (i) UNDER A SECURITY
AGREEMENT CREATES OR PROVIDES FOR A SECURITY INTEREST THAT
SECURES AN OBLIGATION OR
 (ii) SELLS AN ACCOUNT, CHATTEL PAPER,
PAYMENT INTANGIBLE, OR PROMISSORY NOTE . THE TERM INCLUDES A
SECURED PARTY THAT HAS TRANSFERRED A SECURITY INTEREST TO ANOTHER
PERSON
.
(11)  "Chattel paper" means: a record or records that evidence both
a monetary obligation and a security interest in specific goods, a security
interest in specific goods and software used in the goods, a security interest
in specific goods and license of software used in the goods, a lease of
specific goods, or a lease of specific goods and license of software used in
the goods. In this paragraph (11), "monetary obligation" means a monetary
obligation secured by the goods or owed under a lease of the goods and
includes a monetary obligation with respect to software used in the goods.
The term does not include (i) charters or other contracts involving the use
or hire of a vessel or (ii) records that evidence a right to payment arising out
of the use of a credit or charge card or information contained on or for use
with the card. If a transaction is evidenced by records that include an
instrument or series of instruments, the group of records taken together
constitutes chattel paper.
(A)  A RIGHT TO PAYMENT OF A MONETARY OBLIGATION SECURED BY
PAGE 24-SENATE BILL 23-090 SPECIFIC GOODS, IF THE RIGHT TO PAYMENT AND SECURITY AGREEMENT ARE
EVIDENCED BY A RECORD
; OR
(B)  A RIGHT TO PAYMENT OF A MONETARY OBLIGATION OWED BY A
LESSEE UNDER A LEASE AGREEMENT WITH RESPECT TO SPECIFIC GOODS AND
A MONETARY OBLIGATION OWED BY THE LESSEE IN CONNECTION WITH THE
TRANSACTION GIVING RISE TO THE LEASE
, IF:
(i)  T
HE RIGHT TO PAYMENT AND LEASE AGREEMENT ARE EVIDENCED
BY A RECORD
; AND
(ii)  THE PREDOMINANT PURPOSE OF THE TRANSACTION GIVING RISE
TO THE LEASE WAS TO GIVE THE LESSEE THE RIGHT TO POSSESSION AND USE
OF THE GOODS
. THE TERM DOES NOT INCLUDE A RIGHT TO PAYMENT ARISING
OUT OF A CHARTER OR OTHER CONTRACT INVOLVING THE USE OR HIRE OF A
VESSEL OR A RIGHT TO PAYMENT ARISING OUT OF THE USE OF A CREDIT OR
CHARGE CARD OR INFORMATION CONTAINED ON OR FOR USE WITH THE CARD
.
(27.5)  "C
ONTROLLABLE ACCOUNT " MEANS AN ACCOUNT EVIDENCED
BY A CONTROLLABLE ELECTRONIC RECORD THAT PROVIDES THAT THE
ACCOUNT DEBTOR UNDERTAKES TO PAY THE PERSON THAT HAS CONTROL
UNDER SECTION 
4-12-105 OF THE CONTROLLABLE ELECTRONIC RECORD .
(27.7)  "C
ONTROLLABLE PAYMENT INTANGIBLE " MEANS A PAYMENT
INTANGIBLE EVIDENCED BY A CONTROLLABLE ELECTRONIC RECORD THAT
PROVIDES THAT THE ACCOUNT DEBTOR UNDERTAKES TO PAY THE PERSON
THAT HAS CONTROL UNDER SECTION 
4-12-105 OF THE CONTROLLABLE
ELECTRONIC RECORD
.
(31)  "Electronic chattel paper" means chattel paper evidenced by a
record or records consisting of information stored in an electronic medium.
(31.5)  "ELECTRONIC MONEY" MEANS MONEY IN AN ELECTRONIC
FORM
.
(42)  "General intangible" means any personal property, including
things in action, other than accounts, chattel paper, commercial tort claims,
deposit accounts, documents, goods, instruments, investment property,
letter-of-credit rights, letters of credit, money, and oil, gas, or other minerals
before extraction. The term includes 
CONTROLLABLE ELECTRONIC RECORDS ,
PAGE 25-SENATE BILL 23-090 payment intangibles, and software.
(47)  "Instrument" means a negotiable instrument or any other
writing that evidences a right to the payment of a monetary obligation, is
not itself a security agreement or lease, and is of a type that in 
THE ordinary
course of business is transferred by delivery with any necessary indorsement
or assignment. The term does not include (i) investment property; (ii) letters
of credit; or
 (iii) writings that evidence a right to payment arising out of the
use of a credit or charge card or information contained on or for use with
the card; 
OR (iv) WRITINGS THAT EVIDENCE CHATTEL PAPER .
(54.5)  "M
ONEY" HAS THE MEANING IN SECTION 4-1-201 (b)(24), BUT
DOES NOT INCLUDE
 (i) A DEPOSIT ACCOUNT OR (ii) MONEY IN AN
ELECTRONIC FORM THAT CANNOT BE SUBJECTED TO CONTROL 	UNDER
SECTION 
4-9-105.5.
(61)  "Payment intangible" means a general intangible under which
the account debtor's principal obligation is a monetary obligation. T
HE TERM
INCLUDES A CONTROLLABLE PAYMENT INTANGIBLE
.
(66)  "Proposal" means a record authenticated
 SIGNED by a secured
party which includes the terms on which the secured party is willing to
accept collateral in full or partial satisfaction of the obligation it secures
pursuant to sections 4-9-620, 4-9-621, and 4-9-622.
(77)  "Send", in connection with a record or notification, means:
(A)  To deposit in the mail, deliver for transmission, or transmit by
any other usual means of communication, with postage or cost of
transmission provided for, addressed to any address reasonable under the
circumstances; or
(B)  To cause the record or notification to be received within the time
that it would have been received if properly sent under subparagraph (A) of
this paragraph (77).
(81)  "Tangible chattel paper" means chattel paper evidenced by a
record or records consisting of information that is inscribed on a tangible
medium.
PAGE 26-SENATE BILL 23-090 (81.5)  "TANGIBLE MONEY" MEANS MONEY IN A TANGIBLE FORM .
(b)  "Control" as provided in section 4-7-106 and the following
definitions in other articles apply to this article ARTICLE 9:
"Applicant" Section 4-5-102. 
"Beneficiary" Section 4-5-102. 
"Broker" Section 4-8-102. 
"Certificated security" Section 4-8-102. 
"Check" Section 4-3-104. 
"Clearing corporation" Section 4-8-102. 
"Contract for sale" Section 4-2-106. 
"C
ONTROLLABLE ELECTRONIC RECORD "S ECTION 4-12-102. 
"Customer" Section 4-4-104. 
"Entitlement holder" Section 4-8-102. 
"Financial asset" Section 4-8-102. 
"Holder in due course" Section 4-3-302. 
"Issuer" (with respect to a letter of credit
or letter-of-credit right) Section 4-5-102. 
"Issuer" (with respect to a security) Section 4-8-201. 
"Issuer" (with respect to documents of title) Section 4-7-102. 
"Lease" Section 4-2.5-103. 
"Lease agreement" Section 4-2.5-103. 
PAGE 27-SENATE BILL 23-090 "Lease contract" Section 4-2.5-103. 
"Leasehold interest" Section 4-2.5-103. 
"Lessee" Section 4-2.5-103. 
"Lessee in ordinary course of business" Section 4-2.5-103. 
"Lessor" Section 4-2.5-103. 
"Lessor's residual interest" Section 4-2.5-103. 
"Letter of credit" Section 4-5-102. 
"Merchant" Section 4-2-104. 
"Negotiable instrument" Section 4-3-104. 
"Nominated person" Section 4-5-102. 
"Note" Section 4-3-104. 
"Proceeds of a letter of credit" Section 4-5-114. 
"P
ROTECTED PURCHASER"S	ECTION 4-8-303. 
"Prove" Section 4-3-103. 
"Q
UALIFYING PURCHASER"S	ECTION 4-12-102. 
"Sale" Section 4-2-106. 
"Securities account" Section 4-8-501. 
"Securities intermediary" Section 4-8-102. 
"Security" Section 4-8-102. 
"Security certificate" Section 4-8-102. 
PAGE 28-SENATE BILL 23-090 "Security entitlement" Section 4-8-102. 
"Uncertificated security" Section 4-8-102. 
SECTION 43. In Colorado Revised Statutes, 4-9-104, amend (a)(2)
and (a)(3); and add (a)(4) as follows:
4-9-104.  Control of deposit account. (a)  A secured party has
control of a deposit account if:
(2)  The debtor, secured party, and bank have agreed in an
authenticated A SIGNED record that the bank will comply with instructions
originated by the secured party directing disposition of the funds in the
deposit account without further consent by the debtor; or
(3)  The secured party becomes the bank's customer with respect to
the deposit account; 
OR
(4)  ANOTHER PERSON, OTHER THAN THE DEBTOR:
(A)  H
AS CONTROL OF THE DEPOSIT ACCOUNT AND ACKNOWLEDGES
THAT IT HAS CONTROL ON BEHALF OF THE SECURED PARTY
; OR
(B)  OBTAINS CONTROL OF THE DEPOSIT ACCOUNT AFTER HAVING
ACKNOWLEDGED THAT IT WILL OBTAIN CONTROL OF THE DEPOSIT ACCOUNT
ON BEHALF OF THE SECURED PARTY
.
SECTION 44. In Colorado Revised Statutes, 4-9-105, amend (a),
(b) introductory portion, (b)(1), (b)(2), (b)(3), and (b)(4); and add (c), (d),
(e), (f), and (g) as follows:
4-9-105.  Control of electronic copy of record evidencing chattel
paper. (a)  A secured party has control of electronic chattel paper if a
system employed for evidencing the transfer of interests in the chattel paper
reliably establishes the secured party as the person to which the chattel
paper was assigned A PURCHASER HAS CONTROL OF AN AUTHORITATIVE
ELECTRONIC COPY OF A RECORD EVIDENCING CHATTEL PAPER IF A SYSTEM
EMPLOYED FOR EVIDENCING THE ASSIGNMENT OF INTERESTS IN THE CHATTEL
PAPER RELIABLY ESTABLISHES THE PURCHASER AS THE PERSON TO WHICH
THE AUTHORITATIVE ELECTRONIC COPY WAS ASSIGNED
.
PAGE 29-SENATE BILL 23-090 (b)  A system satisfies subsection (a) of this section if the record or
records comprising the chattel paper are created, stored, and assigned in
such a manner that A SYSTEM SATISFIES SUBSECTION (a) OF THIS SECTION IF
THE RECORD OR RECORDS EVIDENCING THE CHATTEL PAPER ARE CREATED
,
STORED, AND ASSIGNED IN A MANNER THAT:
(1)  A single authoritative copy of the record or records exists thatis unique, identifiable, and, except as otherwise provided in paragraphs (4),
(5), and (6) of this subsection (b), unalterable A SINGLE AUTHORITATIVE
COPY OF THE RECORD OR RECORDS EXISTS WHICH IS UNIQUE
, IDENTIFIABLE,
AND, EXCEPT AS OTHERWISE PROVIDED IN SUBSECTIONS (a)(4), (a)(5), AND
(a)(6) OF THIS SECTION, UNALTERABLE;
(2)  The authoritative copy identifies the secured party
 PURCHASER
as the assignee of the record or records;
(3)  The authoritative copy is communicated to and maintained by
the secured party PURCHASER or its designated custodian;
(4)  Copies or amendments that add or change an identified assignee
of the authoritative copy can be made only with the consent of the secured
party purchaser;
(c)  A
 SYSTEM SATISFIES SUBSECTION (a) OF THIS SECTION, AND A
PURCHASER HAS CONTROL OF AN AUTHORITATIVE ELECTRONIC COPY OF A
RECORD EVIDENCING CHATTEL PAPER
, IF THE ELECTRONIC COPY, A RECORD
ATTACHED TO OR LOGICALLY ASSOCIATED WITH THE ELECTRONIC COPY
, OR
A SYSTEM IN WHICH THE ELECTRONIC COPY IS RECORDED
:
(1)  E
NABLES THE PURCHASER READILY TO IDENTIFY EACH
ELECTRONIC COPY AS EITHER AN AUTHORITATIVE COPY OR A
NONAUTHORITATIVE COPY
;
(2)  E
NABLES THE PURCHASER READILY TO IDENTIFY ITSELF IN ANY
WAY
, INCLUDING BY NAME, IDENTIFYING NUMBER, CRYPTOGRAPHIC KEY,
OFFICE, OR ACCOUNT NUMBER, AS THE ASSIGNEE OF THE AUTHORITATIVE
ELECTRONIC COPY
; AND
(3)  GIVES THE PURCHASER EXCLUSIVE POWER , SUBJECT TO
SUBSECTION
 (d) OF THIS SECTION, TO:
PAGE 30-SENATE BILL 23-090 (A)  PREVENT OTHERS FROM ADDING OR CHANGING AN IDENTIFIED
ASSIGNEE OF THE AUTHORITATIVE ELECTRONIC COPY
; AND
(B)  TRANSFER CONTROL OF THE AUTHORITATIVE ELECTRONIC COPY .
(d)  S
UBJECT TO SUBSECTION (e) OF THIS SECTION, A POWER IS
EXCLUSIVE UNDER SUBSECTIONS
 (c)(3)(A) AND (c)(3)(B) OF THIS SECTION
EVEN IF
:
(1)  T
HE AUTHORITATIVE ELECTRONIC COPY , A RECORD ATTACHED TO
OR LOGICALLY ASSOCIATED WITH THE AUTHORITATIVE ELECTRONIC COPY
,
OR A SYSTEM IN WHICH THE AUTHORITATIVE ELECTRONIC COPY IS RECORDED
LIMITS THE USE OF THE AUTHORITATIVE ELECTRONIC COPY OR HAS A
PROTOCOL PROGRAMMED TO CAUSE A CHANGE
, INCLUDING A TRANSFER OR
LOSS OF CONTROL
; OR
(2)  THE POWER IS SHARED WITH ANOTHER PERSON .
(e)  A
 POWER OF A PURCHASER IS NOT SHARED WITH ANOTHER
PERSON UNDER SUBSECTION
 (d)(2) OF THIS SECTION AND THE PURCHASER'S
POWER IS NOT EXCLUSIVE IF
:
(1)  T
HE PURCHASER CAN EXERCISE THE POWER ONLY IF THE POWER
ALSO IS EXERCISED BY THE OTHER PERSON
; AND
(2)  THE OTHER PERSON:
(A)  C
AN EXERCISE THE POWER WITHOUT EXERCISE OF THE POWER BY
THE PURCHASER
; OR
(B)  IS THE TRANSFEROR TO THE PURCHASER OF AN INTEREST IN THE
CHATTEL PAPER
.
(f)  I
F A PURCHASER HAS THE POWERS SPECIFIED IN SUBSECTIONS
(c)(3)(A) AND (c)(3)(B) OF THIS SECTION, THE POWERS ARE PRESUMED TO
BE EXCLUSIVE
.
(g)  A
 PURCHASER HAS CONTROL OF AN AUTHORITATIVE ELECTRONIC
COPY OF A RECORD EVIDENCING CHATTEL PAPER IF ANOTHER PERSON
, OTHER
THAN THE TRANSFEROR TO THE PURCHASER OF AN INTEREST IN THE CHATTEL
PAGE 31-SENATE BILL 23-090 PAPER:
(1)  H
AS CONTROL OF THE AUTHORITATIVE ELECTRONIC COPY AND
ACKNOWLEDGES THAT IT HAS CONTROL ON BEHALF OF THE PURCHASER
; OR
(2)  OBTAINS CONTROL OF THE AUTHORITATIVE ELECTRONIC COPY
AFTER HAVING ACKNOWLEDGED THAT IT WILL OBTAIN CONTROL OF THE
ELECTRONIC COPY ON BEHALF OF THE PURCHASER
.
SECTION 45. In Colorado Revised Statutes, add 4-9-105.5 and
4-9-107.5 as follows:
4-9-105.5.  Control of electronic money. (a)  A
 PERSON HAS
CONTROL OF ELECTRONIC MONEY IF
:
(1)  T
HE ELECTRONIC MONEY , A RECORD ATTACHED TO OR
LOGICALLY ASSOCIATED WITH THE ELECTRONIC MONEY
, OR A SYSTEM IN
WHICH THE ELECTRONIC MONEY IS RECORDED GIVES THE PERSON
:
(A)  P
OWER TO AVAIL ITSELF OF SUBSTANTIALLY ALL THE BENEFIT
FROM THE ELECTRONIC MONEY
; AND
(B)  EXCLUSIVE POWER, SUBJECT TO SUBSECTION (b) OF THIS
SECTION
, TO:
(i)  P
REVENT OTHERS FROM AVAILING THEMSELVES OF
SUBSTANTIALLY ALL THE BENEFIT FROM THE ELECTRONIC MONEY
; AND
(ii)  TRANSFER CONTROL OF THE ELECTRONIC MONEY TO ANOTHER
PERSON OR CAUSE ANOTHER PERSON TO OBTAIN CONTROL OF OTHER
ELECTRONIC MONEY AS A RESULT OF THE TRANSFER OF THE ELECTRONIC
MONEY
; AND
(2)  THE ELECTRONIC MONEY , A RECORD ATTACHED TO OR
LOGICALLY ASSOCIATED WITH THE ELECTRONIC MONEY
, OR A SYSTEM IN
WHICH THE ELECTRONIC MONEY IS RECORDED ENABLES THE PERSON READILY
TO IDENTIFY ITSELF IN ANY WAY
, INCLUDING BY NAME , IDENTIFYING
NUMBER
, CRYPTOGRAPHIC KEY, OFFICE, OR ACCOUNT NUMBER, AS HAVING
THE POWERS UNDER SUBSECTION
 (a)(1) OF THIS SECTION.
PAGE 32-SENATE BILL 23-090 (b)  SUBJECT TO SUBSECTION (c) OF THIS SECTION, A POWER IS
EXCLUSIVE UNDER SUBSECTIONS
 (a)(1)(B)(i) AND (a)(1)(B)(ii) OF THIS
SECTION EVEN IF
:
(1)  T
HE ELECTRONIC MONEY , A RECORD ATTACHED TO OR
LOGICALLY ASSOCIATED WITH THE ELECTRONIC MONEY
, OR A SYSTEM IN
WHICH THE ELECTRONIC MONEY IS RECORDED LIMITS THE USE OF THE
ELECTRONIC MONEY OR HAS A PROTOCOL PROGRAMMED TO CAUSE A
CHANGE
, INCLUDING A TRANSFER OR LOSS OF CONTROL ; OR
(2)  THE POWER IS SHARED WITH ANOTHER PERSON .
(c)  A
 POWER OF A PERSON IS NOT SHARED WITH ANOTHER PERSON
UNDER SUBSECTION
 (b)(2) OF THIS SECTION AND THE PERSON'S POWER IS NOT
EXCLUSIVE IF
:
(1)  T
HE PERSON CAN EXERCISE THE POWER ONLY IF THE POWER ALSO
IS EXERCISED BY THE OTHER PERSON
; AND
(2)  THE OTHER PERSON:
(A)  C
AN EXERCISE THE POWER WITHOUT EXERCISE OF THE POWER BY
THE PERSON
; OR
(B)  IS THE TRANSFEROR TO THE PERSON OF AN INTEREST IN THE
ELECTRONIC MONEY
.
(d)  I
F A PERSON HAS THE POWERS SPECIFIED IN SUBSECTIONS
(a)(1)(B)(i) AND (a)(1)(B)(ii) OF THIS SECTION, THE POWERS ARE PRESUMED
TO BE EXCLUSIVE
.
(e)  A
 PERSON HAS CONTROL OF ELECTRONIC MONEY IF ANOTHER
PERSON
, OTHER THAN THE TRANSFEROR TO THE PERSON OF AN INTEREST IN
THE ELECTRONIC MONEY
:
(1)  H
AS CONTROL OF THE ELECTRONIC MONEY AND ACKNOWLEDGES
THAT IT HAS CONTROL ON BEHALF OF THE PERSON
; OR
(2)  OBTAINS CONTROL OF THE ELECTRONIC MONEY AFTER HAVING
ACKNOWLEDGED THAT IT WILL OBTAIN CONTROL OF THE ELECTRONIC MONEY
PAGE 33-SENATE BILL 23-090 ON BEHALF OF THE PERSON.
4-9-107.5.  Control of controllable electronic record, controllable
account, or controllable payment intangible. (a)  A
 SECURED PARTY HAS
CONTROL OF A CONTROLLABLE ELECTRONIC RECORD AS PROVIDED IN
SECTION 
4-12-105.
(b)  A
 SECURED PARTY HAS CONTROL OF A CONTROLLABLE ACCOUNT
OR CONTROLLABLE PAYMENT INTANGIBLE IF THE SECURED PARTY HAS
CONTROL OF THE CONTROLLABLE ELECTRONIC RECORD THAT EVIDENCES THE
CONTROLLABLE ACCOUNT OR CONTROLLABLE PAYMENT INTANGIBLE
.
SECTION 46. In Colorado Revised Statutes, 4-9-203, amend
(b)(3)(A), (b)(3)(C), and (b)(3)(D); and add (b)(3)(E) as follows:
4-9-203.  Attachment and enforceability of security interest;
proceeds; supporting obligations; formal requisites. (b)  Except as
otherwise provided in subsections (c) to (i) of this section, a security interest
is enforceable against the debtor and third parties with respect to the
collateral only if:
(3)  One of the following conditions is met:
(A)  The debtor has authenticated
 SIGNED a security agreement that
provides a description of the collateral and, if the security interest covers
timber to be cut, a description of the land concerned;
(C)  The collateral is a certificated security in registered form, and
the security certificate has been delivered to the secured party under section
4-8-301 pursuant to the debtor's security agreement; or
(D)  The collateral is CONTROLLABLE ACCOUNTS , CONTROLLABLE
ELECTRONIC RECORDS
, CONTROLLABLE PAYMENT INTANGIBLES , deposit
accounts, electronic chattel paper
 ELECTRONIC DOCUMENTS , ELECTRONIC
MONEY
, investment property, OR letter-of-credit rights, or electronicdocuments, and the secured party has control under section 4-7-106,
4-9-104, 4-9-105 4-9-105.5, 4-9-106, or 4-9-107, OR 4-9-107.5 pursuant to
the debtor's security agreement; 
OR
(E)  THE COLLATERAL IS CHATTEL PAPER, AND THE SECURED PARTY
PAGE 34-SENATE BILL 23-090 HAS POSSESSION AND CONTROL UNDER SECTION 4-9-314.5 PURSUANT TO THE
DEBTOR
'S SECURITY AGREEMENT.
SECTION 47. In Colorado Revised Statutes, 4-9-204, amend (b)
introductory portion; and add (b.1) as follows:
4-9-204.  After-acquired property - future advances. (b)  ASUBJECT TO SUBSECTION (b.1) OF THIS SECTION, A security interest does not
attach under a term constituting an after-acquired property clause to:
(b.1)  S
UBSECTION (b) OF THIS SECTION DOES NOT PREVENT A
SECURITY INTEREST FROM ATTACHING
:
(1)  T
O CONSUMER GOODS AS PROCEEDS UNDER SECTION 4-9-315 (a)
OR COMMINGLED GOODS UNDER SECTION 4-9-336 (c);
(2)  T
O A COMMERCIAL TORT CLAIM AS PROCEEDS UNDER SECTION
4-9-315 (a); OR
(3)  UNDER AN AFTER-ACQUIRED PROPERTY CLAUSE TO PROPERTY
THAT IS PROCEEDS OF CONSUMER GOODS OR A COMMERCIAL TORT CLAIM
.
SECTION 48. In Colorado Revised Statutes, 4-9-207, amend (c)
introductory portion as follows:
4-9-207.  Rights and duties of secured party having possession or
control of collateral. (c)  Except as otherwise provided in subsection (d)
of this section, a secured party having possession of collateral or control of
collateral under section 4-7-106, 4-9-104, 4-9-105, 4-9-105.5, 4-9-106, or
4-9-107, OR 4-9-107.5:
SECTION 49. In Colorado Revised Statutes, 4-9-208, amend (b)
introductory portion, (b)(1), (b)(3), (b)(4), (b)(5), and (b)(6); and add (b)(7)
and (b)(8) as follows:
4-9-208.  Additional duties of secured party having control of
collateral. (b)  Within five business days after receiving an authenticated
A SIGNED demand by the debtor:
(1)  A secured party having control of a deposit account under
PAGE 35-SENATE BILL 23-090 section 4-9-104 (a)(2) shall send to the bank with which the deposit account
is maintained an authenticated statement A SIGNED RECORD that releases the
bank from any further obligation to comply with instructions originated by
the secured party;
(3)  A secured party, other than a buyer, having control of electronic
chattel paper under section 4-9-105 shall: A SECURED PARTY, OTHER THAN
A BUYER
, HAVING CONTROL UNDER SECTION 4-9-105 OF AN AUTHORITATIVE
ELECTRONIC COPY OF A RECORD EVIDENCING CHATTEL PAPER SHALL
TRANSFER CONTROL OF THE ELECTRONIC COPY TO THE DEBTOR OR A PERSON
DESIGNATED BY THE DEBTOR
;
(A)  Communicate the authoritative copy of the electronic chattel
paper to the debtor or its designated custodian;
(B)  If the debtor designates a custodian that is the designated
custodian with which the authoritative copy of the electronic chattel paper
is maintained for the secured party, communicate to the custodian an
authenticated record releasing the designated custodian from any further
obligation to comply with instructions originated by the secured party and
instructing the custodian to comply with instructions originated by the
debtor; and
(C)  Take appropriate action to enable the debtor or its designated
custodian to make copies of or revisions to the authoritative copy which add
or change an identified assignee of the authoritative copy without the
consent of the secured party;
(4)  A secured party having control of investment property under
section 4-8-106 (d)(2) or 4-9-106 (b) shall send to the securities
intermediary or commodity intermediary with which the security entitlement
or commodity contract is maintained an authenticated A SIGNED record that
releases the securities intermediary or commodity intermediary from any
further obligation to comply with entitlement orders or directions originated
by the secured party;
(5)  A secured party having control of a letter-of-credit right under
section 4-9-107 shall send to each person having an unfulfilled obligation
to pay or deliver proceeds of the letter of credit to the secured party an
authenticated A SIGNED release from any further obligation to pay or deliver
PAGE 36-SENATE BILL 23-090 proceeds of the letter of credit to the secured party; and
(6)  A secured party having control of an electronic document shall:
A SECURED PARTY HAVING CONTROL UNDER SECTION 4-7-106 OF AN
AUTHORITATIVE ELECTRONIC COPY OF AN ELECTRONIC DOCUMENT SHALL
TRANSFER CONTROL OF THE ELECTRONIC COPY TO THE DEBTOR OR A PERSON
DESIGNATED BY THE DEBTOR
;
(A)  Give control of the electronic document to the debtor or its
designated custodian;
(B)  If the debtor designates a custodian that is the designated
custodian with which the authoritative copy of the electronic document is
maintained for the secured party, communicate to the custodian an
authenticated record releasing the designated custodian from any further
obligation to comply with instructions originated by the secured party and
instructing the custodian to comply with instructions originated by the
debtor; and
(C)  Take appropriate action to enable the debtor or its designated
custodian to make copies of or revisions to the authoritative copy that add
or change an identified assignee of the authoritative copy without the
consent of the secured party.
(7)  A SECURED PARTY HAVING CONTROL UNDER SECTION 4-9-105.5
OF ELECTRONIC MONEY SHALL TRANSFER CONTROL OF THE ELECTRONIC
MONEY TO THE DEBTOR OR A PERSON DESIGNATED BY THE DEBTOR
; AND
(8)  A SECURED PARTY HAVING CONTROL UNDER SECTION 4-12-105
OF A CONTROLLABLE ELECTRONIC RECORD , OTHER THAN A BUYER OF A
CONTROLLABLE ACCOUNT OR CONTROLLABLE PAYMENT INTANGIBLE
EVIDENCED BY THE CONTROLLABLE ELECTRONIC RECORD
, SHALL TRANSFER
CONTROL OF THE CONTROLLABLE ELECTRONIC RECORD TO THE DEBTOR OR
A PERSON DESIGNATED BY THE DEBTOR
.
SECTION 50. In Colorado Revised Statutes, 4-9-209, amend (b)
as follows:
4-9-209.  Duties of secured party if account debtor has been
notified of assignment. (b)  Within ten days after receiving an
PAGE 37-SENATE BILL 23-090 authenticated A SIGNED demand by the debtor, a secured party shall send to
an account debtor that has received notification under section 4-9-406 (a)
OR 4-12-106 (b) of an assignment to the secured party as assignee undersection 4-9-406 (a) an authenticated A SIGNED record that releases the
account debtor from any further obligation to the secured party.
SECTION 51. In Colorado Revised Statutes, 4-9-210, amend
(a)(2), (a)(3), (b), (c), and (d) introductory portion as follows:
4-9-210.  Request for accounting - request regarding list of
collateral or statement of account - definitions. (a)  In this section:
(2)  "Request for an accounting" means a record authenticated
SIGNED by a debtor requesting that the recipient provide an accounting of
the unpaid obligations secured by collateral and reasonably identifying the
transaction or relationship that is the subject of the request.
(3)  "Request regarding a list of collateral" means a record
authenticated
 SIGNED by a debtor requesting that the recipient approve or
correct a list of what the debtor believes to be the collateral securing an
obligation and reasonably identifying the transaction or relationship that is
the subject of the request.
(b)  Subject to subsections (c), (d), (e), and (f) of this section, a
secured party, other than a buyer of accounts, chattel paper, payment
intangibles, or promissory notes or a consignor, shall comply with a request
within fourteen days after receipt:
(1)  In the case of a request for an accounting, by authenticating
SIGNING and sending to the debtor an accounting; and
(2)  In the case of a request regarding a list of collateral or a request
regarding a statement of account, by authenticating SIGNING and sending to
the debtor an approval or correction.
(c)  A secured party that claims a security interest in all of a
particular type of collateral owned by the debtor may comply with a request
regarding a list of collateral by sending to the debtor an authenticated
 A
SIGNED
 record including a statement to that effect within fourteen days after
receipt.
PAGE 38-SENATE BILL 23-090 (d)  A person that receives a request regarding a list of collateral,
THAT claims no interest in the collateral when it receives the request, and
that claimed an interest in the collateral at an earlier time shall comply with
the request within fourteen days after receipt by sending to the debtor an
authenticated A SIGNED record:
SECTION 52. In Colorado Revised Statutes, 4-9-301, amend the
introductory portion and (3) introductory portion as follows:
4-9-301.  Law governing perfection and priority of security
interests. Except as otherwise provided in sections 4-9-303 to 4-9-306
4-9-306.7, the following rules determine the law governing perfection, the
effect of perfection or nonperfection, and the priority of a security interest
in collateral:
(3)  Except as otherwise provided in paragraph
 SUBSECTION (4) of
this section, while tangible negotiable TANGIBLE documents, goods,
instruments, 
OR TANGIBLE money or tangible chattel paper
 is located in a
jurisdiction, the local law of that jurisdiction governs:
SECTION 53. In Colorado Revised Statutes, 4-9-304, amend (a)
as follows:
4-9-304.  Law governing perfection and priority of security
interests in deposit accounts. (a)  The local law of a bank's jurisdiction
governs perfection, the effect of perfection or nonperfection, and the
priority of a security interest in a deposit account maintained with that bank
EVEN IF THE TRANSACTION DOES NOT BEAR ANY RELATION TO THE BANK 'S
JURISDICTION
.
SECTION 54. In Colorado Revised Statutes, 4-9-305, add (a)(5)
as follows:
4-9-305.  Law governing perfection and priority of security
interests in investment property. (a)  Except as otherwise provided in
subsection (c) of this section, the following rules apply:
(5)  S
UBSECTIONS (a)(2), (a)(3), AND (a)(4) OF THIS SECTION APPLY
EVEN IF THE TRANSACTION DOES NOT BEAR ANY RELATION TO THE
JURISDICTION
.
PAGE 39-SENATE BILL 23-090 SECTION 55. In Colorado Revised Statutes, add 4-9-306.5 and
4-9-306.7 as follows:
4-9-306.5.  Law governing perfection and priority of security
interests in chattel paper. (a)  E
XCEPT AS PROVIDED IN SUBSECTION (d) OF
THIS SECTION
, IF CHATTEL PAPER IS EVIDENCED ONLY BY AN AUTHORITATIVE
ELECTRONIC COPY OF THE CHATTEL PAPER OR IS EVIDENCED BY AN
AUTHORITATIVE ELECTRONIC COPY AND AN AUTHORITATIVE TANGIBLE COPY
,
THE LOCAL LAW OF THE CHATTEL PAPER 'S JURISDICTION GOVERNS
PERFECTION
, THE EFFECT OF PERFECTION OR NONPERFECTION , AND THE
PRIORITY OF A SECURITY INTEREST IN THE CHATTEL PAPER
, EVEN IF THE
TRANSACTION DOES NOT BEAR ANY RELATION TO THE CHATTEL PAPER
'S
JURISDICTION
.
(b)  T
HE FOLLOWING RULES DETERMINE THE CHATTEL PAPER 'S
JURISDICTION UNDER THIS SECTION
:
(1)  I
F THE AUTHORITATIVE ELECTRONIC COPY OF THE RECORD
EVIDENCING CHATTEL PAPER
, OR A RECORD ATTACHED TO OR LOGICALLY
ASSOCIATED WITH THE ELECTRONIC COPY AND READILY AVAILABLE FOR
REVIEW
, EXPRESSLY PROVIDES THAT A PARTICULAR JURISDICTION IS THE
CHATTEL PAPER
'S JURISDICTION FOR PURPOSES OF THIS PART 3, THIS ARTICLE
9, OR THIS TITLE 4, THAT JURISDICTION IS THE CHATTEL PAPER 'S
JURISDICTION
.
(2)  I
F SUBSECTION (b)(1) OF THIS SECTION DOES NOT APPLY AND THE
RULES OF THE SYSTEM IN WHICH THE AUTHORITATIVE ELECTRONIC COPY IS
RECORDED ARE READILY AVAILABLE FOR REVIEW AND EXPRESSLY PROVIDE
THAT A PARTICULAR JURISDICTION IS THE CHATTEL PAPER
'S JURISDICTION
FOR PURPOSES OF THIS PART 
3, THIS ARTICLE 9, OR THIS TITLE 4, THAT
JURISDICTION IS THE CHATTEL PAPER
'S JURISDICTION.
(3)  I
F SUBSECTIONS (b)(1) AND (b)(2) OF THIS SECTION DO NOT
APPLY AND THE AUTHORITATIVE ELECTRONIC COPY
, OR A RECORD ATTACHED
TO OR LOGICALLY ASSOCIATED WITH THE ELECTRONIC COPY AND READILY
AVAILABLE FOR REVIEW
, EXPRESSLY PROVIDES THAT THE CHATTEL PAPER IS
GOVERNED BY THE LAW OF A PARTICULAR JURISDICTION
, THAT JURISDICTION
IS THE CHATTEL PAPER
'S JURISDICTION.
(4)  I
F SUBSECTIONS (b)(1), (b)(2), AND (b)(3) OF THIS SECTION DO
PAGE 40-SENATE BILL 23-090 NOT APPLY AND THE RULES OF THE SYSTEM IN WHICH THE AUTHORITATIVE
ELECTRONIC COPY IS RECORDED ARE READILY AVAILABLE FOR REVIEW AND
EXPRESSLY PROVIDE THAT THE CHATTEL PAPER OR THE SYSTEM IS
GOVERNED BY THE LAW OF A PARTICULAR JURISDICTION
, THAT JURISDICTION
IS THE CHATTEL PAPER
'S JURISDICTION.
(5)  I
F SUBSECTIONS (b)(1) TO (b)(4) OF THIS SECTION DO NOT APPLY,
THE CHATTEL PAPER'S JURISDICTION IS THE JURISDICTION IN WHICH THE
DEBTOR IS LOCATED
.
(c)  I
F AN AUTHORITATIVE TANGIBLE COPY OF A RECORD EVIDENCES
CHATTEL PAPER AND THE CHATTEL PA PER IS NOT EVIDENCED BY AN
AUTHORITATIVE ELECTRONIC COPY
, WHILE THE AUTHORITATIVE TANGIBLE
COPY OF THE RECORD EVIDENCING CHATTEL PAPER IS LOCATED IN A
JURISDICTION
, THE LOCAL LAW OF THAT JURISDICTION GOVERNS :
(1)  P
ERFECTION OF A SECURITY INTEREST IN THE CHATTEL PAPER BY
POSSESSION UNDER SECTION 
4-9-314.5; AND
(2)  THE EFFECT OF PERFECTION OR NONPERFECTION AND THE
PRIORITY OF A SECURITY INTEREST IN THE CHATTEL PAPER
.
(d)  T
HE LOCAL LAW OF THE JURISDICTION IN WHICH THE DEBTOR IS
LOCATED GOVERNS PERFECTION OF A SECURITY INTEREST IN CHATTEL PAPER
BY FILING
.
4-9-306.7.  Law governing perfection and priority of security
interests in controllable accounts, controllable electronic records, and
controllable payment intangibles. (a)  E
XCEPT AS PROVIDED IN
SUBSECTION
 (b) OF THIS SECTION, THE LOCAL LAW OF THE CONTROLLABLE
ELECTRONIC RECORD
'S JURISDICTION SPECIFIED IN SECTION 4-12-107 (c) AND
(d) GOVERNS PERFECTION, THE EFFECT OF PERFECTION OR NONPERFECTION ,
AND THE PRIORITY OF A SECURITY INTEREST IN A CONTROLLABLE
ELECTRONIC RECORD AND A SECURITY INTEREST IN A CONTROLLABLE
ACCOUNT OR CONTROLLABLE PAYMENT INTANGIBLE EVIDENCED BY THE
CONTROLLABLE ELECTRONIC RECORD
.
(b)  T
HE LOCAL LAW OF THE JURISDICTION IN WHICH THE DEBTOR IS
LOCATED GOVERNS
:
PAGE 41-SENATE BILL 23-090 (1)  PERFECTION OF A SECURITY INTEREST IN A CONTROLLABLE
ACCOUNT
, CONTROLLABLE ELECTRONIC RECORD , OR CONTROLLABLE
PAYMENT INTANGIBLE BY FILING
; AND
(2)  AUTOMATIC PERFECTION OF A SECURITY INTEREST IN A
CONTROLLABLE PAYMENT INTANGIBLE CREATED BY A SALE OF THE
CONTROLLABLE PAYMENT INTANGIBLE
.
SECTION 56. In Colorado Revised Statutes, 4-9-310, amend
(b)(8); and add (b)(8.1) as follows:
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. (b)  The filing of a financing statement is
not necessary to perfect a security interest:
(8)  In 
CONTROLLABLE ACCOUNTS , CONTROLLABLE ELECTRONIC
RECORDS
, CONTROLLABLE PAYMENT INTANGIBLES , deposit accounts,
electronic chattel paper,
 electronic documents, investment property, or
letter-of-credit rights that is perfected by control under section 4-9-314;
(8.1)  I
N CHATTEL PAPER THAT IS PERFECTED BY POSSESSION AND
CONTROL UNDER SECTION 
4-9-314.5;
SECTION 57. In Colorado Revised Statutes, 4-9-312, amend (a),
(b)(2), (b)(3), and (e); and add (b)(4) as follows:
4-9-312.  Perfection of security interests in chattel paper,
controllable accounts, controllable electronic records, controllable
payment intangibles, deposit accounts, documents, goods covered by
documents, instruments, investment property, letter-of-credit rights,
and money - perfection by permissive filing - temporary perfection
without filing or transfer of possession. (a)  A security interest in chattel
paper, negotiable documents
 CONTROLLABLE ACCOUNTS , CONTROLLABLE
ELECTRONIC RECORDS
, CONTROLLABLE PAYMENT INTANGIBLES , instruments,
or
 investment property, OR NEGOTIABLE DOCUMENTS may be perfected by
filing.
(b)  Except as otherwise provided in section 4-9-315 (c) and (d) for
proceeds:
PAGE 42-SENATE BILL 23-090 (2)  Except as otherwise provided in section 4-9-308 (d), a security
interest in a letter-of-credit right may be perfected only by control under
section 4-9-314; and
(3)  A security interest in TANGIBLE money may be perfected only by
the secured party's taking possession under section 4-9-313; 
AND
(4)  A SECURITY INTEREST IN ELECTRONIC MONEY MAY BE PERFECTED
ONLY BY CONTROL UNDER SECTION 
4-9-314.
(e)  A security interest in certificated securities, negotiable
documents, or instruments is perfected without filing or the taking of
possession or control for a period of twenty days from the time it attaches
to the extent that it arises for new value given under an authenticated
 A
SIGNED
 security agreement.
SECTION 58. In Colorado Revised Statutes, 4-9-313, amend (a),
(c), and (d) as follows:
4-9-313.  When possession by or delivery to secured party
perfects security interest without filing. (a)  Except as otherwise provided
in subsection (b) of this section, a secured party may perfect a security
interest in tangible negotiable documents,
 goods, instruments, NEGOTIABLE
TANGIBLE DOCUMENTS
, OR TANGIBLE money or tangible chattel paper
 by
taking possession of the collateral. A secured party may perfect a security
interest in certificated securities by taking delivery of the certificated
securities under section 4-8-301.
(c)  With respect to collateral other than certificated securities and
goods covered by a document, a secured party takes possession of collateral
in the possession of a person other than the debtor, the secured party, or a
lessee of the collateral from the debtor in the ordinary course of the debtor's
business when:
(1)  The person in possession authenticates
 SIGNS a record
acknowledging that it holds possession of the collateral for the secured
party's benefit; or
(2)  The person takes possession of the collateral after having
authenticated
 SIGNED a record acknowledging that it will hold possession
PAGE 43-SENATE BILL 23-090 of THE collateral for the secured party's benefit.
(d)  If perfection of a security interest depends upon possession of
the collateral by a secured party, perfection occurs no NOT earlier than the
time the secured party takes possession and continues only while the
secured party retains possession.
SECTION 59. In Colorado Revised Statutes, 4-9-314, amend (a),
(b), and (c) introductory portion as follows:
4-9-314.  Perfection by control. (a)  A security interest in
investment property, deposit accounts, letter-of-credit rights, electronic
chattel paper, or electronic documents CONTROLLABLE ACCOUNTS ,
CONTROLLABLE ELECTRONIC RECORDS , CONTROLLABLE PAYMENT
INTANGIBLES
, DEPOSIT ACCOUNTS, ELECTRONIC DOCUMENTS, ELECTRONIC
MONEY
, INVESTMENT PROPERTY, OR LETTER-OF-CREDIT RIGHTS may be
perfected by control of the collateral under section 4-7-106, 4-9-104,
4-9-105
 4-9-105.5, 4-9-106, or 4-9-107, OR 4-9-107.5.
(b)  A security interest in deposit accounts, electronic chattel paper,
letter-of-credit rights, or electronic documents CONTROLLABLE ACCOUNTS ,
CONTROLLABLE ELECTRONIC RECORDS , CONTROLLABLE PAYMENT
INTANGIBLES
, DEPOSIT ACCOUNTS, ELECTRONIC DOCUMENTS, ELECTRONIC
MONEY
, OR LETTER-OF-CREDIT RIGHTS is perfected by control under section
4-7-106, 4-9-104, 4-9-105, or
 4-9-105.5, 4-9-107, when OR 4-9-107.5 NOT
EARLIER THAN THE TIME
 the secured party obtains control and remains
perfected by control only while the secured party retains control.
(c)  A security interest in investment property is perfected by control
under section 4-9-106 from
 NOT EARLIER THAN the time the secured party
obtains control and remains perfected by control until:
SECTION 60. In Colorado Revised Statutes, add 4-9-314.5 as
follows:
4-9-314.5.  Perfection by possession and control of chattel paper.
(a)  A
 SECURED PARTY MAY PERFECT A SECURITY INTEREST IN CHATTEL
PAPER BY TAKING POSSESSION OF EACH AUTHORITATIVE TANGIBLE COPY OF
THE RECORD EVIDENCING THE CHATTEL PAPER AND OBTAINING CONTROL OF
EACH AUTHORITATIVE ELECTRONIC COPY OF THE ELECTRONIC RECORD
PAGE 44-SENATE BILL 23-090 EVIDENCING THE CHATTEL PAPER .
(b)  A
 SECURITY INTEREST IS PERFECTED UNDER SUBSECTION (a) OF
THIS SECTION NOT EARLIER THAN THE TIME THE SECURED PARTY TAKES
POSSESSION AND OBTAINS CONTROL AND REMAINS PERFECTED UNDER
SUBSECTION
 (a) OF THIS SECTION ONLY WHILE THE SECURED PARTY RETAINS
POSSESSION AND CONTROL
.
(c)  S
ECTION 4-9-313 (c) AND (f) TO (i) APPLIES TO PERFECTION BY
POSSESSION OF AN AUTHORITATIVE TANGIBLE COPY OF A RECORD
EVIDENCING CHATTEL PAPER
.
SECTION 61. In Colorado Revised Statutes, 4-9-316, amend (a)
introductory portion and (f) introductory portion as follows:
4-9-316.  Continued perfection of security interest following
change in governing law. (a)  A security interest perfected pursuant to the
law of the jurisdiction designated in section 4-9-301 (1), or
 4-9-305 (c),
4-9-306.5 (d), 
OR 4-9-306.7 (b) remains perfected until the earliest of:
(f)  A security interest in 
CHATTEL PAPER, CONTROLLABLE
ACCOUNTS
, CONTROLLABLE ELECTRONIC RECORDS , CONTROLLABLE
PAYMENT INTANGIBLES
, deposit accounts, letter-of-credit rights, or
investment property which is perfected under the law of the 
CHATTEL
PAPER
'S JURISDICTION, THE CONTROLLABLE ELECTRONIC RECORD 'S
JURISDICTION
, THE bank's jurisdiction, the issuer's jurisdiction, a nominated
person's jurisdiction, the securities intermediary's jurisdiction, or the
commodity intermediary's jurisdiction, as applicable, remains perfected
until the earlier of:
SECTION 62. In Colorado Revised Statutes, 4-9-317, amend (b)
and (d); and add (f), (g), (h), and (i) as follows:
4-9-317.  Interests that take priority over or take free of security
interest or agricultural lien. (b)  Except as otherwise provided in
subsection (e) of this section, a buyer, other than a secured party, of tangible
chattel paper, tangible documents, goods, instruments, TANGIBLE
DOCUMENTS
, or a certificated security takes free of a security interest or
agricultural lien if the buyer gives value and receives delivery of the
collateral without knowledge of the security interest or agricultural lien and
PAGE 45-SENATE BILL 23-090 before it is perfected.
(d)  S
UBJECT TO SUBSECTIONS (f) TO (i) OF THIS SECTION, a licensee
of a general intangible or a buyer, other than a secured party, of collateral
other than tangible chattel paper, tangible documents, ELECTRONIC MONEY,
goods, instruments, 
TANGIBLE DOCUMENTS, or a certificated security takes
free of a security interest if the licensee or buyer gives value without
knowledge of the security interest and before it is perfected.
(f)  A
 BUYER, OTHER THAN A SECURED PARTY , OF CHATTEL PAPER
TAKES FREE OF A SECURITY INTEREST IF
, WITHOUT KNOWLEDGE OF THE
SECURITY INTEREST AND BEFORE IT IS PERFECTED
, THE BUYER GIVES VALUE
AND
:
(1)  R
ECEIVES DELIVERY OF EACH AUTHORITATIVE TANGIBLE COPY
OF THE RECORD EVIDENCING THE CHATTEL PAPER
; AND
(2)  IF EACH AUTHORITATIVE ELECTRONIC COPY OF THE RECORD
EVIDENCING THE CHATTEL PAPER CAN BE SUBJECTED TO CONTROL UNDER
SECTION 
4-9-105, OBTAINS CONTROL OF EACH AUTHORITATIVE ELECTRONIC
COPY
.
(g)  A
 BUYER OF AN ELECTRONIC DOCUMENT TAKES FREE OF A
SECURITY INTEREST IF
, WITHOUT KNOWLEDGE OF THE SECURITY INTEREST
AND BEFORE IT IS PERFECTED
, THE BUYER GIVES VALUE AND , IF EACH
AUTHORITATIVE ELECTRONIC COPY OF THE DOCUMENT CAN BE SUBJECTED
TO CONTROL UNDER SECTION 
4-7-106, OBTAINS CONTROL OF EACH
AUTHORITATIVE ELECTRONIC COPY
.
(h)  A
 BUYER OF A CONTROLLABLE ELECTRONIC RECORD TAKES FREE
OF A SECURITY INTEREST IF
, WITHOUT KNOWLEDGE OF THE SECURITY
INTEREST AND BEFORE IT IS PERFECTED
, THE BUYER GIVES VALUE AND
OBTAINS CONTROL OF THE CONTROLLABLE ELECTRONIC RECORD
.
(i)  A
 BUYER, OTHER THAN A SECURED PARTY, OF A CONTROLLABLE
ACCOUNT OR A CONTROLLABLE PAYMENT INTANGIBLE TAKES FREE OF A
SECURITY INTEREST IF
, WITHOUT KNOWLEDGE OF THE SECURITY INTEREST
AND BEFORE IT IS PERFECTED
, THE BUYER GIVES VALUE AND OBTAINS
CONTROL OF THE CONTROLLABLE ACCOUNT OR CONTROLLABLE PAYMENT
INTANGIBLE
.
PAGE 46-SENATE BILL 23-090 SECTION 63. In Colorado Revised Statutes, 4-9-323, amend (d)
introductory portion and (f) introductory portion as follows:
4-9-323.  Future advances. (d)  Except as otherwise provided in
subsection (e) of this section, a buyer of goods other than a buyer in
ordinary course of business takes free of a security interest to the extent that
it secures advances made after the earlier of:
(f)  Except as otherwise provided in subsection (g) of this section, a
lessee of goods other than a lessee in ordinary course of business, takes the
leasehold interest free of a security interest to the extent that it secures
advances made after the earlier of:
SECTION 64. In Colorado Revised Statutes, 4-9-324, amend
(b)(2) and (d)(2) as follows:
4-9-324.  Priority of purchase-money security interests.
(b)  Subject to subsection (c) of this section and except as otherwise
provided in subsection (g) of this section, a perfected purchase-money
security interest in inventory has priority over a conflicting security interest
in the same inventory, has priority over a conflicting security interest in
chattel paper or an instrument constituting proceeds of the inventory and in
proceeds of the chattel paper, if so provided in section 4-9-330, and, except
as otherwise provided in section 4-9-327, also has priority in identifiable
cash proceeds of the inventory to the extent the identifiable cash proceeds
are received on or before the delivery of the inventory to a buyer, if:
(2)  The purchase-money secured party sends an authenticated
 A
SIGNED
 notification to the holder of the conflicting security interest;
(d)  Subject to subsection (e) of this section and except as otherwise
provided in subsection (g) of this section, a perfected purchase-money
security interest in livestock that are farm products has priority over a
conflicting security interest in the same livestock, and, except as otherwise
provided in section 4-9-327, a perfected security interest in their identifiable
proceeds and identifiable products in their unmanufactured states also has
priority, if:
(2)  The purchase-money secured party sends an authenticated
 A
SIGNED
 notification to the holder of the conflicting security interest;
PAGE 47-SENATE BILL 23-090 SECTION 65. In Colorado Revised Statutes, add 4-9-326.5 as
follows:
4-9-326.5.  Priority of security interest in controllable account,
controllable electronic record, and controllable payment intangible. A
SECURITY INTEREST IN A CONTROLLABLE ACCOUNT , CONTROLLABLE
ELECTRONIC RECORD
, OR CONTROLLABLE PAYMENT INTANGIBLE HELD BY A
SECURED PARTY HAVING CONTROL OF THE ACCOUNT
, ELECTRONIC RECORD,
OR PAYMENT INTANGIBLE HAS PRIORITY OVER A CONFLICTING SECURITY
INTEREST HELD BY A SECURED PARTY THAT DOES NOT HAVE CONTROL
.
SECTION 66. In Colorado Revised Statutes, 4-9-330, amend (a),
(b), and (f) as follows:
4-9-330.  Priority of purchaser of chattel paper or instrument.
(a)  A purchaser of chattel paper has priority over a security interest in the
chattel paper which is claimed merely as proceeds of inventory subject to
a security interest if:
(1)  In good faith and in the ordinary course of the purchaser's
business, the purchaser gives new value, and
 takes possession of EACH
AUTHORITATIVE TANGIBLE COPY OF THE RECORD EVIDENCING
 the chattel
paper, or
 AND obtains control of UNDER SECTION 4-9-105 OF EACH
AUTHORITATIVE ELECTRONIC COPY OF THE RECORD EVIDENCING
 the chattel
paper; under section 4-9-105;
 and
(2)  The 
AUTHORITATIVE COPIES OF THE RECORD EVIDENCING THE
chattel paper does
 DO not indicate that it THE CHATTEL PAPER has been
assigned to an identified assignee other than the purchaser.
(b)  A purchaser of chattel paper has priority over a security interest
in the chattel paper which is claimed other than merely as proceeds of
inventory subject to a security interest if the purchaser gives new value, and
takes possession of EACH AUTHORITATIVE TANGIBLE COPY OF THE RECORD
EVIDENCING
 the chattel paper, or
 AND obtains control of UNDER SECTION
4-9-105 OF EACH AUTHORITATIVE ELECTRONIC COPY OF THE RECORD
EVIDENCING
 the chattel paper under section 4-9-105
 in good faith, in the
ordinary course of the purchaser's business, and without knowledge that the
purchase violates the rights of the secured party.
PAGE 48-SENATE BILL 23-090 (f)  For purposes of subsections (b) and (d) of this section, if THE
AUTHORITATIVE COPIES OF THE RECORD EVIDENCING
 chattel paper or an
instrument indicates that it
 THE CHATTEL PAPER OR INSTRUMENT has been
assigned to an identified secured party other than the purchaser, a purchaser
of the chattel paper or instrument has knowledge that the purchase violates
the rights of the secured party.
SECTION 67. In Colorado Revised Statutes, 4-9-331, amend (a)
and (b) as follows:
4-9-331.  Priority of rights of purchasers of controllable
accounts, controllable electronic records, controllable payment
intangibles, documents, instruments, and securities under other articles
- priority of interests in financial assets and security entitlements and
protection against assertion of claim under articles 8 and 12. (a)  This
article
 ARTICLE 9 does not limit the rights of a holder in due course of a
negotiable instrument, a holder to which a negotiable document of title has
been duly negotiated, or
 a protected purchaser of a security, OR A
QUALIFYING PURCHASER OF A CONTROLLABLE ACCOUNT
, CONTROLLABLE
ELECTRONIC RECORD
, OR CONTROLLABLE PAYMENT INTANGIBLE . These
holders or purchasers take priority over an earlier security interest, even if
perfected, to the extent provided in articles 3, 7, and 8, AND 12 of this title
TITLE 4.
(b)  This article ARTICLE 9 does not limit the rights of or impose
liability on a person to the extent that the person is protected against the
assertion of a claim under article 8 
OR 12 of this title TITLE 4.
SECTION 68. In Colorado Revised Statutes, amend 4-9-332 as
follows:
4-9-332.  Transfer of tangible money - transfer of funds from
deposit account. (a)  A transferee of 
TANGIBLE money takes the money free
of a security interest unless the transferee acts
 IF THE TRANSFEREE RECEIVES
POSSESSION OF THE MONEY WITHOUT ACTING
 in collusion with the debtor in
violating the rights of the secured party.
(b)  A transferee of funds from a deposit account takes the funds free
of a security interest in the deposit account unless the transferee acts
 IF THE
TRANSFEREE RECEIVES THE FUNDS WITHOUT ACTING
 in collusion with the
PAGE 49-SENATE BILL 23-090 debtor in violating the rights of the secured party.
(c)  A
 TRANSFEREE OF ELECTRONIC MONEY TAKES THE MONEY FREE
OF A SECURITY INTEREST IF THE TRANSFEREE OBTAINS CONTROL OF THE
MONEY WITHOUT ACTING IN COLLUSION WITH THE DEBTOR IN VIOLATING THE
RIGHTS OF THE SECURED PARTY
.
SECTION 69. In Colorado Revised Statutes, 4-9-334, amend (f)(1)
as follows:
4-9-334.  Priority of security interests in fixtures and crops. (f)  A
security interest in fixtures, whether or not perfected, has priority over a
conflicting interest of an encumbrancer or owner of the real property if:
(1)  The encumbrancer or owner has, in an authenticated
 A SIGNED
record, consented to the security interest or disclaimed an interest in the
goods as fixtures; or
SECTION 70. In Colorado Revised Statutes, 4-9-341, amend the
introductory portion as follows:
4-9-341.  Bank's rights and duties with respect to deposit
account. Except as otherwise provided in section 4-9-340 (c), and unless
the bank otherwise agrees in an authenticated A SIGNED record, a bank's
rights and duties with respect to a deposit account maintained with the bank
are not terminated, suspended, or modified by:
SECTION 71. In Colorado Revised Statutes, 4-9-404, amend (a)(2)
as follows:
4-9-404.  Rights acquired by assignee; claims and defenses
against assignee. (a)  Unless an account debtor has made an enforceable
agreement not to assert defenses or claims, and subject to subsections (b)
to (e) of this section, the rights of an assignee are subject to:
(2)  Any other defense or claim of the account debtor against the
assignor which accrues before the account debtor receives a notification of
the assignment authenticated
 SIGNED by the assignor or the assignee.
SECTION 72. In Colorado Revised Statutes, 4-9-406, amend (a),
PAGE 50-SENATE BILL 23-090 (b) introductory portion, (c), (d) introductory portion, and (g); and add (m)
as follows:
4-9-406.  Discharge of account debtor - notification of assignment
- identification and proof of assignment - restrictions on assignment of
accounts, chattel paper, payment intangibles, and promissory notes
ineffective. (a)  Subject to subsections (b) to (i) 
AND (m) of this section, an
account debtor on an account, chattel paper, or a payment intangible may
discharge its obligation by paying the assignor until, but not after, the
account debtor receives a notification, authenticated
 SIGNED by the assignor
or the assignee, that the amount due or to become due has been assigned
and that payment is to be made to the assignee. After receipt of the
notification, the account debtor may discharge its obligation by paying the
assignee and may not discharge the obligation by paying the assignor.
(b)  Subject to subsection (h)
 SUBSECTIONS (h) AND (m) of this
section, notification is ineffective under subsection (a) of this section:
(c)  Subject to subsection (h) SUBSECTIONS (h) AND (m) of this
section, if requested by the account debtor, an assignee shall seasonably
furnish reasonable proof that the assignment has been made. Unless the
assignee complies, the account debtor may discharge its obligation by
paying the assignor, even if the account debtor has received a notification
under subsection (a) of this section.
(d)  I
N THIS SUBSECTION (d), "PROMISSORY NOTE" INCLUDES A
NEGOTIABLE INSTRUMENT THAT EVIDENCES CHATTEL PAPER
. Except as
otherwise provided in subsections (e), (k), and (l), AND (m) of this section
and sections 4-2.5-303, 4-9-407, 8-80-103, 8-42-124, 13-64-210, and
24-4.1-114, C.R.S.,
 and subject to subsection (h) of this section, a term in
an agreement between an account debtor and an assignor or in a promissory
note is ineffective to the extent that it:
(g)  Subject to subsection (h)
 SUBSECTIONS (h) AND (m) of this
section, an account debtor may not waive or vary its option under paragraph
(3) of subsection (b) SUBSECTION (b)(3) of this section.
(m)  S
UBSECTIONS (a), (b), (c), AND (g) OF THIS SECTION DO NOT
APPLY TO A CONTROLLABLE ACCOUNT OR CONTROLLABLE PAYMENT
INTANGIBLE
.
PAGE 51-SENATE BILL 23-090 SECTION 73. In Colorado Revised Statutes, 4-9-408, add (h) as
follows:
4-9-408.  Restrictions on assignment of promissory notes,
health-care-insurance receivables, and certain general intangibles
ineffective. (h)  I
N THIS SECTION, "PROMISSORY NOTE" INCLUDES A
NEGOTIABLE INSTRUMENT THAT EVIDENCES CHATTEL PAPER
.
SECTION 74. In Colorado Revised Statutes, 4-9-509, amend (a)(1)
and (b) introductory portion as follows:
4-9-509.  Persons entitled to file a record. (a)  A person may file
an initial financing statement, amendment that adds collateral covered by
a financing statement, or amendment that adds a debtor to a financing
statement only if:
(1)  The debtor authorizes the filing in an authenticated A SIGNED
record or pursuant to subsection (b) or (c) of this section; or
(b)  By authenticating SIGNING or becoming bound as debtor by a
security agreement, a debtor or new debtor authorizes the filing of an initial
financing statement, and an amendment, covering:
SECTION 75. In Colorado Revised Statutes, 4-9-513, amend
(b)(2) and (c) introductory portion as follows:
4-9-513.  Termination statement. (b)  To comply with subsection
(a) of this section, a secured party shall cause the secured party of record to
file the termination statement:
(2)  If earlier, within twenty days after the secured party receives an
authenticated A SIGNED demand from a debtor.
(c)  In cases not governed by subsection (a) of this section, within
twenty days after a secured party receives an authenticated A SIGNED
demand from a debtor, the secured party shall cause the secured party of	record for a financing statement to send to the debtor a termination	statement for the financing statement or file the termination statement in the	filing office if:
PAGE 52-SENATE BILL 23-090 SECTION 76. In Colorado Revised Statutes, 4-9-601, amend (b)
as follows:
4-9-601.  Rights after default - judicial enforcement - consignor
or buyer of accounts, chattel paper, payment intangibles, or promissory
notes. (b)  A secured party in possession of collateral or control of collateral
under section 4-7-106, 4-9-104, 4-9-105, 4-9-105.5, 4-9-106, or
 4-9-107, OR
4-9-107.5 has the rights and duties provided in section 4-9-207.
SECTION 77. In Colorado Revised Statutes, 4-9-605, amend the
introductory portion; and add (b) as follows:
4-9-605.  Unknown debtor or secondary obligor. (a)  E
XCEPT AS
PROVIDED IN SUBSECTION
 (b) OF THIS SECTION, a secured party does not owe
a duty based on its status as secured party:
(b)  A
 SECURED PARTY OWES A DUTY BASED ON ITS STATUS AS A
SECURED PARTY TO A PERSON IF
, AT THE TIME THE SECURED PARTY OBTAINS
CONTROL OF COLLATERAL THAT IS A CONTROLLABLE ACCOUNT
,
CONTROLLABLE ELECTRONIC RECORD , OR CONTROLLABLE PAYMENT
INTANGIBLE OR AT THE TIME THE SECURITY INTEREST ATTACHES TO THE
COLLATERAL
, WHICHEVER IS LATER:
(1)  T
HE PERSON IS A DEBTOR OR OBLIGOR; AND
(2)  THE SECURED PARTY KNOWS THAT THE INFORMATION IN
SUBSECTION
 (a)(1)(A), (a)(1)(B), OR (a)(1)(C) OF THIS SECTION RELATING
TO THE PERSON IS NOT PROVIDED BY THE COLLATERAL
, A RECORD ATTACHED
TO OR LOGICALLY ASSOCIATED WITH THE COLLATERAL
, OR THE SYSTEM IN
WHICH THE COLLATERAL IS RECORDED
.
SECTION 78. In Colorado Revised Statutes, 4-9-608, amend
(a)(1)(C) as follows:
4-9-608.  Application of proceeds of collection or enforcement -
liability for deficiency and right to surplus. (a)  If a security interest or
agricultural lien secures payment or performance of an obligation, the
following rules apply:
(1)  A secured party shall apply or pay over for application the cash
PAGE 53-SENATE BILL 23-090 proceeds of collection or enforcement under section 4-9-607 in the
following order to:
(C)  The satisfaction of obligations secured by any subordinate
security interest in or other lien on the collateral subject to the security
interest or agricultural lien under which the collection or enforcement is
made if the secured party receives an authenticated
 A SIGNED demand for
proceeds before distribution of the proceeds is completed.
SECTION 79. In Colorado Revised Statutes, 4-9-611, amend
(a)(1), (b), (c) introductory portion, (c)(3)(A), (e) introductory portion, and
(e)(2)(B) as follows:
4-9-611.  Notification before disposition of collateral - definition.
(a)  In this section, "notification date" means the earlier of the date on
which:
(1)  A secured party sends to the debtor and any secondary obligor
an authenticated
 A SIGNED notification of disposition; or
(b)  Except as otherwise provided in subsection (d) of this section,
a secured party that disposes of collateral under section 4-9-610 shall send
to the persons specified in subsection (c) of this section a reasonable
authenticated
 SIGNED notification of disposition.
(c)  To comply with subsection (b) of this section, the secured party
shall send an authenticated A SIGNED notification of disposition to:
(3)  If the collateral is other than consumer goods:
(A)  Any other person from which the secured party has received,
before the notification date, an authenticated
 A SIGNED notification of a
claim of an interest in the collateral;
(e)  A secured party complies with the requirement for notification
prescribed by subparagraph (B) of paragraph (3) of subsection (c)
SUBSECTION (c)(3)(B) of this section if:
(2)  Before the notification date, the secured party:
PAGE 54-SENATE BILL 23-090 (B)  Received a response to the request for information and sent an
authenticated A SIGNED notification of disposition to each secured party or
other lienholder named in that response whose financing statement covered
the collateral.
SECTION 80. In Colorado Revised Statutes, 4-9-613, amend
(a)(5); and add (b) as follows:
4-9-613.  Contents and form of notification before disposition of
collateral: general. (a)  Except in a consumer-goods transaction, the
following rules apply:
(5)  The following form of notification and the form appearing in
section 4-9-614 (3)
 4-9-614 (a)(3), when completed IN ACCORDANCE WITH
THE INSTRUCTIONS IN SUBSECTION
 (b) OF THIS SECTION AND SECTION
4-9-614 (b), each provides sufficient information:
NOTIFICATION OF DISPOSITION OF COLLATERAL
To: [Name of debtor, obligor, or other person to which the
notification is sent]
From: [Name, address, and telephone number of secured party]
Name of Debtor(s): [Include only if debtor(s) are not an addressee]
[For a public disposition:]
We will sell [or lease or license, as applicable] the [describe
collateral] [to the highest qualified bidder] in public as follows:
Day and Date: ____________________
Time: ____________________
Place: ____________________
[For a private disposition:]
We will sell [or lease or license, as applicable] the [describe
PAGE 55-SENATE BILL 23-090 collateral] privately sometime after [day and date].
You are entitled to an accounting of the unpaid indebtedness secured
by the property that we intend to sell [or lease or license, as applicable] [for
a charge of $__________]. You may request an accounting by calling us at
[telephone number] or writing us at [address].
NOTIFICATION OF DISPOSITION OF COLLATERAL
T
O:(NAME OF DEBTOR, OBLIGOR, OR OTHER PERSON TO WHICH THE
NOTIFICATION IS SENT
)
F
ROM:(N AME, ADDRESS, AND TELEPHONE NUMBER OF
SECURED PARTY
)
{1}
  NAME OF ANY DEBTOR THAT IS NOT AN ADDRESSEE : (NAME OF
EACH DEBTOR
)
{2}
  WE WILL SELL (DESCRIBE COLLATERAL) (TO THE HIGHEST
QUALIFIED BIDDER
) AT PUBLIC SALE. A SALE COULD INCLUDE A LEASE OR
LICENSE
. THE SALE WILL BE HELD AS FOLLOWS:
(D
ATE)
(T
IME)
(P
LACE)
{3}
  WE WILL SELL (DESCRIBE COLLATERAL) AT PRIVATE SALE
SOMETIME AFTER 
(DATE). A SALE COULD INCLUDE A LEASE OR LICENSE.
{4}
  YOU ARE ENTITLED TO AN ACCOUNTING OF THE UNPAID
INDEBTEDNESS SECURED BY THE PROPERTY THAT WE INTEND TO SELL OR
, AS
APPLICABLE
, LEASE OR LICENSE.
{5}
  IF YOU REQUEST AN ACCOUNTING YOU MUST PAY A CHARGE OF
$ (AMOUNT).
{6}
  YOU MAY REQUEST AN ACCOUNTING BY CALLING US AT
(TELEPHONE NUMBER).
PAGE 56-SENATE BILL 23-090 (b)  THE FOLLOWING INSTRUCTIONS APPLY TO THE FORM OF
NOTIFICATION IN SUBSECTION
 (a)(5) OF THIS SECTION:
(1)  T
HE INSTRUCTIONS IN THIS SUBSECTION (b) REFER TO THE
NUMBERS IN BRACES BEFORE ITEMS IN THE FORM OF NOTIFICATION IN
SUBSECTION
 (a)(5) OF THIS SECTION. DO NOT INCLUDE THE NUMBERS OR
BRACES IN THE NOTIFICATION
. THE NUMBERS AND BRACES ARE USED ONLY
FOR THE PURPOSE OF THESE INSTRUCTIONS
.
(2)  I
NCLUDE AND COMPLETE ITEM {1} ONLY IF THERE IS A DEBTOR
THAT IS NOT AN ADDRESSEE OF THE NOTIFICATION AND LIST THE NAME OR
NAMES
.
(3)  I
NCLUDE AND COMPLETE EITHER ITEM {2}, IF THE NOTIFICATION
RELATES TO A PUBLIC DISPOSITION OF THE COLLATERAL
, OR ITEM {3}, IF THE
NOTIFICATION RELATES TO A PRIVATE DISPOSITION OF THE COLLATERAL
. IF
ITEM 
{2} IS INCLUDED, INCLUDE THE WORDS "TO THE HIGHEST QUALIFIED
BIDDER
" ONLY IF APPLICABLE.
(4)  I
NCLUDE AND COMPLETE ITEMS {4} AND {6}.
(5)  I
NCLUDE AND COMPLETE ITEM {5} ONLY IF THE SENDER WILL
CHARGE THE RECIPIENT FOR AN ACCOUNTING
.
SECTION 81. In Colorado Revised Statutes, 4-9-614, amend
(a)(1)(A) and (a)(3); and add (b) as follows:
4-9-614.  Contents and form of notification before disposition of
collateral: consumer-goods transaction. (a)  In a consumer-goods
transaction, the following rules apply:
(1)  A notification of disposition must provide the following
information:
(A)  The information specified in section 4-9-613 (1)
 4-9-613 (a)(1);
(3)  The following form of notification, when completed 
IN
ACCORDANCE WITH THE INSTRUCTIONS IN SUBSECTION
 (b) OF THIS SECTION,
provides sufficient information:
PAGE 57-SENATE BILL 23-090 [Name and address of secured party]
[Date]
NOTICE OF OUR PLAN TO SELL PROPERTY
[Name and address of any obligor who is also a debtor]
Subject: [Identification of Transaction]
We have your [describe collateral], because you broke promises in
our agreement.
[For a public disposition:]
We will sell [describe collateral] at public sale. A sale could include
a lease or license. The sale will be held as follows:
Date:  ____________________
Time:  ____________________
Place:  ____________________
You may attend the sale and bring bidders if you want.
[For a private disposition:]
We will sell [describe collateral] at private sale sometime after
[date]. A sale could include a lease or license.
The money that we get from the sale (after paying our costs) will
reduce the amount you owe. If we get less money than you owe, you [will
or will not, as applicable] still owe us the difference. If we get more money
than you owe, you will get the extra money, unless we must pay it to
someone else.
You can get the property back at any time before we sell it by paying
us the full amount you owe (not just the past due payments), including our
expenses. To learn the exact amount you must pay, call us at [telephone
number] or write us at [secured party's address].
PAGE 58-SENATE BILL 23-090 If you want us to explain to you in writing how we have figured the
amount that you owe us, you may call us at [telephone number] [or write us
at [secured party's address]] and request a written explanation. [We will
charge you $__________ for the explanation if we have already sent you an
explanation of the type requested within the last six months.]
If you need more information about the sale call us at [telephone
number] [or write us at [secured party's address]].
We are sending this notice to the following other people who have
an interest in [describe collateral] or who owe money under your
agreement:
[Names of all other debtors and obligors, if any]
[Name and address of secured party]
[Date]
NOTICE OF OUR PLAN TO SELL PROPERTY
(NAME AND ADDRESS OF ANY OBLIGOR WHO IS ALSO A DEBTOR )
S
UBJECT:(IDENTIFY TRANSACTION)
W
E HAVE YOUR (DESCRIBE COLLATERAL), BECAUSE YOU BROKE
PROMISES IN OUR AGREEMENT
.
{1}
  WE WILL SELL (DESCRIBE COLLATERAL) AT PUBLIC SALE. A SALE
COULD INCLUDE A LEASE OR LICENSE
. THE SALE WILL BE HELD AS FOLLOWS:
(D
ATE)
(T
IME)
(P
LACE)
Y
OU MAY ATTEND THE SALE AND BRING BIDDERS IF YOU WANT .
{2}
  WE WILL SELL (DESCRIBE COLLATERAL) AT PRIVATE SALE
SOMETIME AFTER 
(DATE). A SALE COULD INCLUDE A LEASE OR LICENSE.
PAGE 59-SENATE BILL 23-090 {3} THE MONEY THAT WE GET FROM THE SALE , AFTER PAYING OUR
COSTS
, WILL REDUCE THE AMOUNT YOU OWE . IF WE GET LESS MONEY THAN
YOU OWE
, YOU (WILL OR WILL NOT, AS APPLICABLE) STILL OWE US THE
DIFFERENCE
. IF WE GET MORE MONEY THAN YOU OWE	, YOU WILL GET THE
EXTRA MONEY
, UNLESS WE MUST PAY IT TO SOMEONE ELSE .
{4}
  YOU CAN GET THE PROPERTY BACK AT ANY TIME BEFORE WE
SELL IT BY PAYING US THE FULL AMOUNT YOU OWE
, NOT JUST THE PAST DUE
PAYMENTS
, INCLUDING OUR EXPENSES. TO LEARN THE EXACT AMOUNT YOU
MUST PAY
, CALL US AT (TELEPHONE NUMBER).
{5}
  IF YOU WANT US TO EXPLAIN TO YOU IN (WRITING) (WRITING OR
IN 
(DESCRIPTION OF ELECTRONIC RECORD )) (DESCRIPTION OF ELECTRONIC
RECORD
) HOW WE HAVE FIGURED THE AMOUNT THAT YOU OWE US , {6} CALL
US AT 
(TELEPHONE NUMBER ) (OR) (WRITE US AT (SECURED PARTY'S
ADDRESS
)) (OR CONTACT US BY (DESCRIPTION OF ELECTRONIC
COMMUNICATION METHOD
)) {7} AND REQUEST (A WRITTEN EXPLANATION)
(
A WRITTEN EXPLANATION OR AN EXPLANATION IN (DESCRIPTION OF
ELECTRONIC RECORD
)) (AN EXPLANATION IN (DESCRIPTION OF ELECTRONIC
RECORD
)).
{8}
  WE WILL CHARGE YOU $ (AMOUNT) FOR THE EXPLANATION IF WE
SENT YOU ANOTHER WRITTEN EXPLANAT ION OF THE AMOUNT YOU OWE US
WITHIN THE LAST SIX MONTHS
.
{9}
  IF YOU NEED MORE INFORMATION ABOUT THE SALE (CALL US AT
(TELEPHONE NUMBER)) (OR) (WRITE US AT (SECURED PARTY'S ADDRESS)) (OR
CONTACT US BY 
(DESCRIPTION OF ELECTRONIC COMMUNICATION METHOD )).
{10}
  WE ARE SENDING THIS NOTICE TO THE FOLLOWING OTHER
PEOPLE WHO HAVE AN INTEREST IN 
(DESCRIBE COLLATERAL) OR WHO OWE
MONEY UNDER YOUR AGREEMENT
:
(N
AMES OF ALL OTHER DEBTORS AND OBLIGORS , IF ANY)
(b)  T
HE FOLLOWING INSTRUCTIONS APPLY TO THE FORM OF
NOTIFICATION IN SUBSECTION
 (a)(3) OF THIS SECTION:
(1)  T
HE INSTRUCTIONS IN THIS SUBSECTION (b) REFER TO THE
NUMBERS IN BRACES BEFORE ITEMS IN THE FORM OF NOTIFICATION IN
PAGE 60-SENATE BILL 23-090 SUBSECTION (a)(3) OF THIS SECTION. DO NOT INCLUDE THE NUMBERS OR
BRACES IN THE NOTIFICATION
. THE NUMBERS AND BRACES ARE USED ONLY
FOR THE PURPOSE OF THESE INSTRUCTIONS
.
(2)  I
NCLUDE AND COMPLETE EITHER ITEM {1}, IF THE NOTIFICATION
RELATES TO A PUBLIC DISPOSITION OF THE COLLATERAL
, OR ITEM {2}, IF THE
NOTIFICATION RELATES TO A PRIVATE DISPOSITION OF THE COLLATERAL
.
(3)  I
NCLUDE AND COMPLETE ITEMS {3}, {4}, {5}, {6}, AND {7}.
(4)  I
N ITEM {5}, INCLUDE AND COMPLETE ANY ONE OF THE THREE
ALTERNATIVE METHODS FOR THE EXPLANATION
-WRITING, WRITING OR
ELECTRONIC RECORD
, OR ELECTRONIC RECORD.
(5)  I
N ITEM {6}, INCLUDE THE TELEPHONE NUMBER . IN ADDITION,
THE SENDER MAY INCLUDE AND COMPLETE EITHER OR BOTH OF THE TWO
ADDITIONAL ALTERNATIVE METHODS OF COMMUNICATION
--WRITING OR
ELECTRONIC COMMUNICATION
--FOR THE RECIPIENT OF THE NOTIFICATION TO
COMMUNICATE WITH THE SENDER
. NEITHER OF THE TWO ADDITIONAL
METHODS OF COMMUNICATION IS REQUIRED TO BE INCLUDED
.
(6)  I
N ITEM {7}, INCLUDE AND COMPLETE THE METHOD OR METHODS
FOR THE EXPLANATION
--WRITING, WRITING OR ELECTRONIC RECORD , OR
ELECTRONIC RECORD
-INCLUDED IN ITEM {5}.
(7)  I
NCLUDE AND COMPLETE ITEM {8} ONLY IF A WRITTEN
EXPLANATION IS INCLUDED IN ITEM 
{5} AS A METHOD FOR COMMUNICATING
THE EXPLANATION AND THE SENDER WILL CHARGE THE RECIPIENT FOR
ANOTHER WRITTEN EXPLANATION
.
(8)  I
N ITEM {9}, INCLUDE EITHER THE TELEPHONE NUMBER OR THE
ADDRESS OR BOTH THE TELEPHONE NUMBER AND THE ADDRESS
. IN
ADDITION
, THE SENDER MAY INCLUDE AND COMPLETE THE ADDITIONAL
METHOD OF COMMUNICATION
--ELECTRONIC COMMUNICATION --FOR THE
RECIPIENT OF THE NOTIFICATION TO COMMUNICATE WITH THE SENDER
. THE
ADDITIONAL METHOD OF ELECTRONIC COMMUNICATION IS NOT REQUIRED TO
BE INCLUDED
.
(9)  I
F ITEM {10} DOES NOT APPLY, INSERT "NONE" AFTER
"AGREEMENT:".
PAGE 61-SENATE BILL 23-090 SECTION 82. In Colorado Revised Statutes, 4-9-615, amend
(a)(3)(A) and (a)(4) as follows:
4-9-615.  Application of proceeds of disposition; liability for
deficiency and right to surplus. (a)  A secured party shall apply or pay
over for application the cash proceeds of disposition under section 4-9-610
in the following order to:
(3)  The satisfaction of obligations secured by any subordinate
security interest in or other subordinate lien on the collateral if:
(A)  The secured party receives from the holder of the subordinate
security interest or other lien an authenticated
 A SIGNED demand for
proceeds before distribution of the proceeds is completed; and
(4)  A secured party that is a consignor of the collateral if the secured
party receives from the consignor an authenticated A SIGNED demand for
proceeds before distribution of the proceeds is completed.
SECTION 83. In Colorado Revised Statutes, 4-9-616, amend (a)(1)
introductory portion, (a)(2)(A), (b)(1)(A), and (c) introductory portion as
follows:
4-9-616.  Explanation of calculation of surplus or deficiency -
definitions. (a)  In this section:
(1)  "Explanation" means a writing
 RECORD that:
(2)  "Request" means a record:
(A)  Authenticated
 SIGNED by a debtor or consumer obligor;
(b)  In a consumer-goods transaction in which the debtor is entitled
to a surplus or a consumer obligor is liable for a deficiency under section
4-9-615, the secured party shall:
(1)  Send an explanation to the debtor or consumer obligor, as
applicable, after the disposition and:
(A)  Before or when the secured party accounts to the debtor and
PAGE 62-SENATE BILL 23-090 pays any surplus or first makes written demand IN A RECORD on the
consumer obligor after the disposition for payment of the deficiency; and
(c)  To comply with subparagraph (B) of paragraph (1) of subsection
(a) SUBSECTION (a)(1)(B) of this section, a writing AN EXPLANATION must
provide the following information in the following order:
SECTION 84. In Colorado Revised Statutes, 4-9-619, amend (a)
introductory portion as follows:
4-9-619.  Transfer of record or legal title. (a)  In this section,
"transfer statement" means a record authenticated SIGNED by a secured party
stating:
SECTION 85. In Colorado Revised Statutes, 4-9-620, amend (a)(2)
introductory portion, (c)(1), (c)(2) introductory portion, (c)(2)(C), and (f)(2)
as follows:
4-9-620.  Acceptance of collateral in full or partial satisfaction of
obligation - compulsory disposition of collateral. (a)  Except as otherwise
provided in subsection (g) of this section, a secured party may accept
collateral in full or partial satisfaction of the obligation it secures only if:
(2)  The secured party does not receive, within the time set forth in
subsection (d) of this section, a notification of objection to the proposal
authenticated
 SIGNED by:
(c)  For purposes of this section:
(1)  A debtor consents to an acceptance of collateral in partial
satisfaction of the obligation it secures only if the debtor agrees to the terms
of the acceptance in a record authenticated
 SIGNED after default; and
(2)  A debtor consents to an acceptance of collateral in full
satisfaction of the obligation it secures only if the debtor agrees to the terms
of the acceptance in a record authenticated
 SIGNED after default or the
secured party:
(C)  Does not receive a notification of objection authenticated
SIGNED by the debtor within twenty days after the proposal is sent.
PAGE 63-SENATE BILL 23-090 (f)  To comply with subsection (e) of this section, the secured party
shall dispose of the collateral:
(2)  Within any longer period to which the debtor and all secondary
obligors have agreed in an agreement to that effect entered into and
authenticated
 SIGNED after default.
SECTION 86. In Colorado Revised Statutes, 4-9-621, amend (a)(1)
as follows:
4-9-621.  Notification of proposal to accept collateral. (a)  A
secured party that desires to accept collateral in full or partial satisfaction
of the obligation it secures shall send its proposal to:
(1)  Any person from which the secured party has received, before
the debtor consented to the acceptance, an authenticated
 A SIGNED
notification of a claim of an interest in the collateral;
SECTION 87. In Colorado Revised Statutes, amend 4-9-624 as
follows:
4-9-624.  Waiver. (a)  A debtor or secondary obligor may waive the
right to notification of disposition of collateral under section 4-9-611 only
by an agreement to that effect entered into and authenticated
 SIGNED after
default.
(b)  A debtor may waive the right to require disposition of collateral
under section 4-9-620 (e) only by an agreement to that effect entered into
and authenticated
 SIGNED after default.
(c)  Except in a consumer-goods transaction, a debtor or secondary
obligor may waive the right to redeem collateral under section 4-9-623. Any
such waiver must be by an agreement to that effect entered into and
authenticated
 SIGNED after default.
SECTION 88. In Colorado Revised Statutes, 4-9-628, amend (a)
introductory portion and (b) introductory portion; and add (f) as follows:
4-9-628.  Nonliability and limitation on liability of secured party
- liability of secondary obligor. (a)  S
UBJECT TO SUBSECTION (f) OF THIS
PAGE 64-SENATE BILL 23-090 SECTION, unless a secured party knows that a person is a debtor or obligor,
knows the identity of the person, and knows how to communicate with the
person:
(b)  S
UBJECT TO SUBSECTION (f) OF THIS SECTION, a secured party is
not liable because of its status as secured party:
(f)  S
UBSECTIONS (a) AND (b) OF THIS SECTION DO NOT APPLY TO
LIMIT THE LIABILITY OF A SECURED PARTY TO A PERSON IF
, AT THE TIME THE
SECURED PARTY OBTAINS CONTROL OF COLLATERAL THAT IS A
CONTROLLABLE ACCOUNT
, CONTROLLABLE ELECTRONIC RECORD , OR
CONTROLLABLE PAYMENT INTANGIBLE OR AT THE TIME THE SECURITY
INTEREST ATTACHES TO THE COLLATERAL
, WHICHEVER IS LATER:
(1)  T
HE PERSON IS A DEBTOR OR OBLIGOR; AND
(2)  THE SECURED PARTY KNOWS THAT THE INFORMATION IN
SUBSECTION
 (b)(1)(A), (b)(1)(B), OR (b)(1)(C) OF THIS SECTION RELATING
TO THE PERSON IS NOT PROVIDED BY THE COLLATERAL
, A RECORD ATTACHED
TO OR LOGICALLY ASSOCIATED WITH THE COLLATERAL
, OR THE SYSTEM IN
WHICH THE COLLATERAL IS RECORDED
.
SECTION 89. In Colorado Revised Statutes, add articles 12 and 13
to title 4 as follows:
ARTICLE 12
Controllable Electronic Records
4-12-101.  Title. T
HIS ARTICLE 12 MAY BE CITED AS THE "UNIFORM
COMMERCIAL CODE-CONTROLLABLE ELECTRONIC RECORDS".
4-12-102.  Definitions. (a)  I
N THIS ARTICLE 12:
(1)  "C
ONTROLLABLE ELECTRONIC RECORD " MEANS A RECORD
STORED IN AN ELECTRONIC MEDIUM THAT CAN BE SUBJECTED TO CONTROL
UNDER SECTION 
4-12-105. THE TERM DOES NOT INCLUDE A CONTROLLABLE
ACCOUNT
, A CONTROLLABLE PAYMENT INTANGIBLE , A DEPOSIT ACCOUNT, AN
ELECTRONIC COPY OF A RECORD EVIDENCING CHATTEL PAPER
, AN
ELECTRONIC DOCUMENT OF TITLE
, ELECTRONIC MONEY , INVESTMENT
PROPERTY
, OR A TRANSFERABLE RECORD.
PAGE 65-SENATE BILL 23-090 (2)  "QUALIFYING PURCHASER " MEANS A PURCHASER OF A
CONTROLLABLE ELECTRONIC RECORD OR AN INTEREST IN A CONTROLLABLE
ELECTRONIC RECORD THAT OBTAINS CONTROL OF THE CONTROLLABLE
ELECTRONIC RECORD FOR VALUE
, IN GOOD FAITH, AND WITHOUT NOTICE OF
A CLAIM OF A PROPERTY RIGHT IN THE CONTROLLABLE ELECTRONIC RECORD
.
(3)  "T
RANSFERABLE RECORD " HAS THE MEANING PROVIDED FOR
THAT TERM IN SECTION
 201 (a)(1) OF THE FEDERAL "ELECTRONIC
SIGNATURES IN GLOBAL AND NATIONAL COMMERCE ACT", 15 U.S.C. SEC.
7021 (a)(1), 
AS AMENDED.
(4)  "V
ALUE" HAS THE MEANING PROVIDED IN SECTION 4-3-303 (a),
AS IF REFERENCES IN THAT SUBSECTION (a) TO AN "INSTRUMENT" WERE
REFERENCES TO A CONTROLLABLE ACCOUNT
, CONTROLLABLE ELECTRONIC
RECORD
, OR CONTROLLABLE PAYMENT INTANGIBLE .
(b)  T
HE DEFINITIONS IN ARTICLE 9 OF THIS TITLE 4 OF "ACCOUNT
DEBTOR
", "CONTROLLABLE ACCOUNT ", "CONTROLLABLE PAYMENT
INTANGIBLE
", "CHATTEL PAPER", "DEPOSIT ACCOUNT", "ELECTRONIC
MONEY
", AND "INVESTMENT PROPERTY" APPLY TO THIS ARTICLE 12.
(c)  A
RTICLE 1 OF THIS TITLE 4 CONTAINS GENERAL DEFINITIONS AND
PRINCIPLES OF CONSTRUCTION AND INTERPRETATION APPLICABLE
THROUGHOUT THIS ARTICLE 
12.
4-12-103.  Relation to article 9 and consumer laws. (a)  I
F THERE
IS CONFLICT BETWEEN THIS ARTICLE 
12 AND ARTICLE 9 OF THIS TITLE 4,
ARTICLE 9 OF THIS TITLE 4 GOVERNS.
(b)  A
 TRANSACTION SUBJECT TO THIS ARTICLE 12 IS SUBJECT TO ANY
APPLICABLE RULE OF LAW THAT ESTABLISHES A DIFFERENT RULE FOR
CONSUMERS AND ANY OTHER STATE LAW
.
4-12-104.  Rights in controllable account, controllable electronic
record, and controllable payment intangible. (a)  T
HIS SECTION APPLIES
TO THE ACQUISITION AND PURCHASE OF RIGHTS IN A CONTROLLABLE
ACCOUNT OR CONTROLLABLE PAYMENT INTANGIBLE
, INCLUDING THE RIGHTS
AND BENEFITS UNDER SUBSECTIONS
 (c), (d), (e), (g), AND (h) OF THIS
SECTION OF A PURCHASER AND QUALIFYING PURCHASER
, IN THE SAME
MANNER THIS SECTION APPLIES TO A CONTROLLABLE ELECTRONIC RECORD
.
PAGE 66-SENATE BILL 23-090 (b)  TO DETERMINE WHETHER A PURCHASER OF A CONTROLLABLE
ACCOUNT OR A CONTROLLABLE PAYMENT INTANGIBLE IS A QUALIFYING
PURCHASER
, THE PURCHASER OBTAINS CONTROL OF THE ACCOUNT OR
PAYMENT INTANGIBLE IF IT OBTAINS CONTROL OF THE CONTROLLABLE
ELECTRONIC RECORD THAT EVIDENCES THE ACCOUNT OR PAYMENT
INTANGIBLE
.
(c)  E
XCEPT AS PROVIDED IN THIS SECTION, LAW OTHER THAN THIS
ARTICLE 
12 DETERMINES WHETHER A PERSON ACQUIRES A RIGHT IN A
CONTROLLABLE ELECTRONIC RECORD AND THE RIGHT THE PERSON
ACQUIRES
.
(d)  A
 PURCHASER OF A CONTROLLABLE ELECTRONIC RECORD
ACQUIRES ALL RIGHTS IN THE CONTROLLABLE ELECTRONIC RECORD THAT
THE TRANSFEROR HAD OR HAD POWER TO TRANSFER
; EXCEPT THAT A
PURCHASER OF A LIMITED INTEREST IN A CONTROLLABLE ELECTRONIC
RECORD ACQUIRES RIGHTS ONLY TO THE EXTENT OF THE INTEREST
PURCHASED
.
(e)  A
 QUALIFYING PURCHASER ACQUIRES ITS RIGHTS IN THE
CONTROLLABLE ELECTRONIC RECORD FREE OF A CLAIM OF A PROPERTY
RIGHT IN THE CONTROLLABLE ELECTRONIC RECORD
.
(f)  E
XCEPT AS PROVIDED IN SUBSECTIONS (a) AND (e) OF THIS
SECTION FOR A CONTROLLABLE ACCOUNT AND A CONTROLLABLE PAYMENT
INTANGIBLE OR LAW OTHER THAN THIS ARTICLE 
12, A QUALIFYING
PURCHASER TAKES A RIGHT TO PAYMENT
, RIGHT TO PERFORMANCE , OR
OTHER INTEREST IN PROPERTY EVIDENCED BY THE CONTROLLABLE
ELECTRONIC RECORD SUBJECT TO A CLAIM OF A PROPERTY RIGHT IN THE
RIGHT TO PAYMENT
, RIGHT TO PERFORMANCE , OR OTHER INTEREST IN
PROPERTY
.
(g)  A
N ACTION MAY NOT BE ASSERTED AGAINST A QUALIFYING
PURCHASER BASED ON BOTH A PURCHASE BY THE QUALIFYING PURCHASER
OF A CONTROLLABLE ELECTRONIC RECORD AND A CLAIM OF A PROPERTY
RIGHT IN ANOTHER CONTROLLABLE ELECTRONIC RECORD
, WHETHER THE
ACTION IS FRAMED IN CONVERSION
, REPLEVIN, CONSTRUCTIVE TRUST,
EQUITABLE LIEN, OR OTHER THEORY.
(h)  F
ILING OF A FINANCING STATEMENT UNDER ARTICLE 9 OF THIS
PAGE 67-SENATE BILL 23-090 TITLE 4 IS NOT NOTICE OF A CLAIM OF A PROPERTY RIGHT IN A
CONTROLLABLE ELECTRONIC RECORD
.
4-12-105.  Control of controllable electronic record. (a)  A
 PERSON
HAS CONTROL OF A CONTROLLABLE ELECTRONIC RECORD IF THE ELECTRONIC
RECORD
, A RECORD ATTACHED TO OR LOGICALLY ASSOCIATED WITH THE
ELECTRONIC RECORD
, OR A SYSTEM IN WHICH THE ELECTRONIC RECORD IS
RECORDED
:
(1)  G
IVES THE PERSON:
(A)  P
OWER TO AVAIL ITSELF OF SUBSTANTIALLY ALL THE BENEFIT
FROM THE ELECTRONIC RECORD
; AND
(B)  EXCLUSIVE POWER, SUBJECT TO SUBSECTION (b) OF THIS
SECTION
, TO:
(i)  P
REVENT OTHERS FROM AVAILING THEMSELVES OF
SUBSTANTIALLY ALL THE BENEFIT FROM THE ELECTRONIC RECORD
; AND
(ii)  TRANSFER CONTROL OF THE ELECTRONIC RECORD TO ANOTHER
PERSON OR CAUSE ANOTHER PERSON TO OBTAIN CONTROL OF ANOTHER
CONTROLLABLE ELECTRONIC RECORD AS A RESULT OF THE TRANSFER OF THE
ELECTRONIC RECORD
; AND
(2)  ENABLES THE PERSON READILY TO IDENTIFY ITSELF IN ANY WAY ,
INCLUDING BY NAME, IDENTIFYING NUMBER, CRYPTOGRAPHIC KEY, OFFICE,
OR ACCOUNT NUMBER , AS HAVING THE POWERS SPECIFIED IN SUBSECTION
(a)(1) OF THIS SECTION.
(b)  S
UBJECT TO SUBSECTION (c) OF THIS SECTION, A POWER IS
EXCLUSIVE UNDER SUBSECTIONS
 (a)(1)(B)(i) AND (a)(1)(B)(ii) OF THIS
SECTION EVEN IF
:
(1)  T
HE CONTROLLABLE ELECTRONIC RECORD , A RECORD ATTACHED
TO OR LOGICALLY ASSOCIATED WITH THE ELECTRONIC RECORD
, OR A SYSTEM
IN WHICH THE ELECTRONIC RECORD IS RECORDED LIMITS THE USE OF THE
ELECTRONIC RECORD OR HAS A PROTOCOL PROGRAMMED TO CAUSE A
CHANGE
, INCLUDING A TRANSFER OR LOSS OF CONTROL OR A MODIFICATION
OF BENEFITS AFFORDED BY THE ELECTRONIC RECORD
; OR
PAGE 68-SENATE BILL 23-090 (2)  THE POWER IS SHARED WITH ANOTHER PERSON .
(c)  A
 POWER OF A PERSON IS NOT SHARED WITH ANOTHER PERSON
UNDER SUBSECTION
 (b)(2) OF THIS SECTION AND THE PERSON'S POWER IS NOT
EXCLUSIVE IF
:
(1)  T
HE PERSON CAN EXERCISE THE POWER ONLY IF THE POWER ALSO
IS EXERCISED BY THE OTHER PERSON
; AND
(2)  THE OTHER PERSON:
(A)  C
AN EXERCISE THE POWER WITHOUT EXERCISE OF THE POWER BY
THE PERSON
; OR
(B)  IS THE TRANSFEROR TO THE PERSON OF AN INTEREST IN THE
CONTROLLABLE ELECTRONIC RECORD OR A CONTROLLABLE ACCOUNT OR
CONTROLLABLE PAYMENT INTANGIBLE EVIDENCED BY THE CONTROLLABLE
ELECTRONIC RECORD
.
(d)  I
F A PERSON HAS THE POWERS SPECIFIED IN SUBSECTIONS
(a)(1)(B)(i) AND (a)(1)(B)(ii) OF THIS SECTION, THE POWERS ARE PRESUMED
TO BE EXCLUSIVE
.
(e)  A
 PERSON HAS CONTROL OF A CONTROLLABLE ELECTRONIC
RECORD IF ANOTHER PERSON
, OTHER THAN THE TRANSFEROR TO THE PERSON
OF AN INTEREST IN THE CONTROLLABLE ELECTRONIC RECORD OR A
CONTROLLABLE ACCOUNT OR CONTROLLABLE PAYMENT INTANGIBLE
EVIDENCED BY THE CONTROLLABLE ELECTRONIC RECORD
:
(1)  H
AS CONTROL OF THE ELECTRONIC RECORD AND ACKNOWLEDGES
THAT IT HAS CONTROL ON BEHALF OF THE PERSON
; OR
(2)  OBTAINS CONTROL OF THE ELECTRONIC RECORD AFTER HAVING
ACKNOWLEDGED THAT IT WILL OBTAIN CONTROL OF THE ELECTRONIC
RECORD ON BEHALF OF THE PERSON
.
(f)  A
 PERSON THAT HAS CONTROL UNDER THIS SECTION IS NOT
REQUIRED TO ACKNOWLEDGE THAT IT HAS CONTROL ON BEHALF OF ANOTHER
PERSON
.
PAGE 69-SENATE BILL 23-090 (g)  IF A PERSON ACKNOWLEDGES THAT IT HAS OR WILL OBTAIN
CONTROL ON BEHALF OF ANOTHER PERSON
, UNLESS THE PERSON OTHERWISE
AGREES OR LAW OTHER THAN THIS ARTICLE 
12 OR ARTICLE 9 OF THIS TITLE
4 OTHERWISE PROVIDES, THE PERSON DOES NOT OWE ANY DUTY TO THE
OTHER PERSON AND IS NOT REQUIRED TO CONFIRM THE ACKNOWLEDGMENT
TO ANY OTHER PERSON
.
4-12-106.  Discharge of account debtor on controllable account
or controllable payment intangible. (a)  A
N ACCOUNT DEBTOR ON A
CONTROLLABLE ACCOUNT OR CONTROLLABLE PAYMENT INTANGIBLE MAY
DISCHARGE ITS OBLIGATION BY PAYING
:
(1)  T
HE PERSON HAVING CONTROL OF THE CONTROLLABLE
ELECTRONIC RECORD THAT EVIDENCES THE CONTROLLABLE ACCOUNT OR
CONTROLLABLE PAYMENT INTANGIBLE
; OR
(2)  EXCEPT AS PROVIDED IN SUBSECTION (b) OF THIS SECTION, A
PERSON THAT FORMERLY HAD CONTROL OF THE CONTROLLABLE ELECTRONIC
RECORD
.
(b)  S
UBJECT TO SUBSECTION (d) OF THIS SECTION, THE ACCOUNT
DEBTOR MAY NOT DISCHARGE ITS OBLIGATION BY PAYING A PERSON THAT
FORMERLY HAD CONTROL OF THE CONTROLLABLE ELECTRONIC RECORD IF
THE ACCOUNT DEBTOR RECEIVES A NOTIFICATION THAT
:
(1)  I
S SIGNED BY A PERSON THAT FORMERLY HAD CONTROL OR THE
PERSON TO WHICH CONTROL WAS TRANSFERRED
;
(2)  R
EASONABLY IDENTIFIES THE CONTROLLABLE ACC OUNT OR
CONTROLLABLE PAYMENT INTANGIBLE
;
(3)  N
OTIFIES THE ACCOUNT DEBTOR THAT CONTROL OF THE
CONTROLLABLE ELECTRONIC RECORD THAT EVIDENCES THE CONTROLLABLE
ACCOUNT OR CONTROLLABLE PAYMENT INTANGIBLE WAS TRANSFERRED
;
(4)  I
DENTIFIES THE TRANSFEREE , IN ANY REASONABLE WAY ,
INCLUDING BY NAME, IDENTIFYING NUMBER, CRYPTOGRAPHIC KEY, OFFICE,
OR ACCOUNT NUMBER; AND
(5)  PROVIDES A COMMERCIALLY REASONABLE METHOD BY WHICH
PAGE 70-SENATE BILL 23-090 THE ACCOUNT DEBTOR IS TO PAY THE TRANSFEREE .
(c)  A
FTER RECEIPT OF A NOTIFICATION THAT COMPLIES WITH
SUBSECTION
 (b) OF THIS SECTION, THE ACCOUNT DEBTOR MAY DISCHARGE
ITS OBLIGATION BY PAYING IN ACCORDANCE WITH THE NOTIFICATION AND
MAY NOT DISCHARGE THE OBLIGATION BY PAYING A PERSON THAT
FORMERLY HAD CONTROL
.
(d)  S
UBJECT TO SUBSECTION (h) OF THIS SECTION, NOTIFICATION IS
INEFFECTIVE UNDER SUBSECTION
 (b) OF THIS SECTION:
(1)  U
NLESS, BEFORE THE NOTIFICATION IS SENT , THE ACCOUNT
DEBTOR AND THE PERSON THAT
, AT THAT TIME, HAD CONTROL OF THE
CONTROLLABLE ELECTRONIC RECORD THAT EVIDENCES THE CONTROLLABLE
ACCOUNT OR CONTROLLABLE PAYMENT INTANGIBLE AGREE IN A SIGNED
RECORD TO A COMMERCIALLY REASONABLE METHOD BY WHICH A PERSON
MAY FURNISH REASONABLE PROOF THAT CONTROL HAS BEEN TRANSFERRED
;
(2)  T
O THE EXTENT AN AGREEMENT BETWEEN THE ACCOUNT DEBTOR
AND SELLER OF A PAYMENT INTANGIBLE LIMITS THE ACCOUNT DEBTOR
'S
DUTY TO PAY A PERSON OTHER THAN THE SELLER AND THE LIMITATION IS
EFFECTIVE UNDER LAW OTHER THAN THIS ARTICLE 
12; OR
(3)  AT THE OPTION OF THE ACCOUNT DEBTOR , IF THE NOTIFICATION
NOTIFIES THE ACCOUNT DEBTOR TO
:
(A)  D
IVIDE A PAYMENT;
(B)  M
AKE LESS THAN THE FULL AMOUNT OF AN INSTALLMENT OR
OTHER PERIODIC PAYMENT
; OR
(C)  PAY ANY PART OF A PAYMENT BY MORE THAN ONE METHOD OR
TO MORE THAN ONE PERSON
.
(e)  S
UBJECT TO SUBSECTION (h) OF THIS SECTION, IF REQUESTED BY
THE ACCOUNT DEBTOR
, THE PERSON GIVING THE NOTIFICATION UNDER
SUBSECTION
 (b) OF THIS SECTION SEASONABLY SHALL FURNISH REASONABLE
PROOF
, USING THE METHOD IN THE AGREEMENT REFERRED TO IN SUBSECTION
(d)(1) OF THIS SECTION, THAT CONTROL OF THE CONTROLLABLE ELECTRONIC
RECORD HAS BEEN TRANSFERRED
. UNLESS THE PERSON COMPLIES WITH THE
PAGE 71-SENATE BILL 23-090 REQUEST, THE ACCOUNT DEBTOR MAY DISCHARGE ITS OBLIGATION BY
PAYING A PERSON THAT FORMERLY HAD CONTROL
, EVEN IF THE ACCOUNT
DEBTOR HAS RECEIVED A NOTIFICATION UNDER SUBSECTION
 (b) OF THIS
SECTION
.
(f)  A
 PERSON FURNISHES REASONABLE PROOF UNDER SUBSECTION (e)
OF THIS SECTION THAT CONTROL HAS BEEN TRANSFERRED IF THE PERSON
DEMONSTRATES
, USING THE METHOD IN THE AGREEMENT REFERRED TO IN
SUBSECTION
 (d)(1) OF THIS SECTION, THAT THE TRANSFEREE HAS THE POWER
TO
:
(1)  A
VAIL ITSELF OF SUBSTANTIALLY ALL THE BENEFIT FROM THE
CONTROLLABLE ELECTRONIC RECORD
;
(2)  P
REVENT OTHERS FROM AVAILING THEMSELVES OF
SUBSTANTIALLY ALL THE BENEFIT FROM THE CONTROLLABLE ELECTRONIC
RECORD
; AND
(3)  TRANSFER THE POWERS SPECIFIED IN SUBSECTIONS (f)(1) AND
(f)(2) OF THIS SECTION TO ANOTHER PERSON.
(g)  S
UBJECT TO SUBSECTION (h) OF THIS SECTION, AN ACCOUNT
DEBTOR MAY NOT WAIVE OR VARY ITS RIGHTS UNDER SUBSECTIONS
 (d)(1)
AND (e) OF THIS SECTION OR ITS OPTION UNDER SUBSECTION (d)(3) OF THIS
SECTION
.
(h)  T
HIS SECTION IS SUBJECT TO LAW OTHER THAN THIS ARTICLE 12
WHICH ESTABLISHES A DIFFERENT RULE FOR AN ACCOUNT DEBTOR WHO IS AN
INDIVIDUAL AND WHO INCURRED THE OBLIGATION PRIMARILY FOR
PERSONAL
, FAMILY, OR HOUSEHOLD PURPOSES.
4-12-107.  Governing law. (a)  E
XCEPT AS PROVIDED IN SUBSECTION
(b) OF THIS SECTION, THE LOCAL LAW OF A CONTROLLABLE ELECTRONIC
RECORD
'S JURISDICTION GOVERNS A MATTER COVERED BY THIS ARTICLE 12.
(b)  F
OR A CONTROLLABLE ELECTRONIC RECORD THAT EVIDENCES A
CONTROLLABLE ACCOUNT OR CONTROLLABLE PAYMENT INTANGIBLE
, THE
LOCAL LAW OF THE CONTROLLABLE ELECTRONIC RECORD
'S JURISDICTION
GOVERNS A MATTER COVERED BY SECTION 
4-12-106 UNLESS AN EFFECTIVE
AGREEMENT DETERMINES THAT THE LOCAL LAW OF ANOTHER JURISDICTION
PAGE 72-SENATE BILL 23-090 GOVERNS.
(c)  T
HE FOLLOWING RULES DETERMINE A CONTROLLABLE
ELECTRONIC RECORD
'S JURISDICTION UNDER THIS SECTION:
(1)  I
F THE CONTROLLABLE ELECTRONIC RECORD , OR A RECORD
ATTACHED TO OR LOGICALLY ASSOCIATED WITH THE CONTROLLABLE
ELECTRONIC RECORD AND READILY AVAILABLE FOR REVIEW
, EXPRESSLY
PROVIDES THAT A PARTICULAR JURISDICTION IS THE CONTROLLABLE
ELECTRONIC RECORD
'S JURISDICTION FOR PURPOSES OF THIS ARTICLE 12 OR
THIS TITLE 
4, THAT JURISDICTION IS THE CONTROLLABLE ELECTRONIC
RECORD
'S JURISDICTION.
(2)  I
F SUBSECTION (c)(1) OF THIS SECTION DOES NOT APPLY AND THE
RULES OF THE SYSTEM IN WHICH THE CONTROLLABLE ELECTRONIC RECORD
IS RECORDED ARE READILY AVAILABLE FOR REVIEW AND EXPRESSLY
PROVIDE THAT A PARTICULAR JURISDICTION IS THE CONTROLLABLE
ELECTRONIC RECORD
'S JURISDICTION FOR PURPOSES OF THIS ARTICLE 12 OR
THIS TITLE 
4, THAT JURISDICTION IS THE CONTROLLABLE ELECTRONIC
RECORD
'S JURISDICTION.
(3)  I
F SUBSECTIONS (c)(1) AND (c)(2) OF THIS SECTION DO NOT APPLY
AND THE CONTROLLABLE ELECTRONIC RECORD
, OR A RECORD ATTACHED TO
OR LOGICALLY ASSOCIATED WITH THE CONTROLLABLE ELECTRONIC RECORD
AND READILY AVAILABLE FOR REVIEW
, EXPRESSLY PROVIDES THAT THE
CONTROLLABLE ELECTRONIC RECORD IS GOVERNED BY THE LAW OF A
PARTICULAR JURISDICTION
, THAT JURISDICTION IS THE CONTROLLABLE
ELECTRONIC RECORD
'S JURISDICTION.
(4)  I
F SUBSECTIONS (c)(1), (c)(2), AND (c)(3) OF THIS SECTION DO
NOT APPLY AND THE RULES OF THE SYSTEM IN WHICH THE CONTROLLABLE
ELECTRONIC RECORD IS RECORDED ARE READILY AVAILABLE FOR REVIEW
AND EXPRESSLY PROVIDE THAT THE CONTROLLABLE ELECTRONIC RECORD OR
THE SYSTEM IS GOVERNED BY THE LAW OF A PARTICULAR JURISDICTION
,
THAT JURISDICTION IS THE CONTROLLABLE ELECTRONIC RECORD 'S
JURISDICTION
.
(5)  I
F SUBSECTIONS (c)(1) TO (c)(4) OF THIS SECTION DO NOT APPLY,
THE CONTROLLABLE ELECTRONIC RECORD 'S JURISDICTION IS THE DISTRICT
OF 
COLUMBIA.
PAGE 73-SENATE BILL 23-090 (d)  IF SUBSECTION (c)(5) OF THIS SECTION APPLIES AND THIS ARTICLE
12 IS NOT IN EFFECT IN THE DISTRICT OF COLUMBIA WITHOUT MATERIAL
MODIFICATION
, THE GOVERNING LAW FOR A MATTER COVERED BY THIS
ARTICLE 
12 IS THE LAW OF THE DISTRICT OF COLUMBIA AS THOUGH THIS
ARTICLE 
12 WERE IN EFFECT IN THE DISTRICT OF COLUMBIA WITHOUT
MATERIAL MODIFICATION
. IN THIS SUBSECTION (d), "ARTICLE 12" MEANS
ARTICLE 
12 OF THE "UNIFORM COMMERCIAL CODE".
(e)  T
O THE EXTENT SUBSECTIONS (a) AND (b) OF THIS SECTION
PROVIDE THAT THE LOCAL LAW OF THE CONTROLLABLE ELECTRONIC
RECORD
'S JURISDICTION GOVERNS A MATTER COVERED BY THIS ARTICLE 12,
THAT LAW GOVERNS EVEN IF THE MATTER OR A TRANSACTION TO WHICH THE
MATTER RELATES DOES NOT BEAR ANY RELATION TO THE CONTROLLABLE
ELECTRONIC RECORD
'S JURISDICTION.
(f)  T
HE RIGHTS ACQUIRED UNDER SECTION 4-12-104 BY A
PURCHASER OR QUALIFYING PURCHASER ARE GOVERNED BY THE LAW
APPLICABLE UNDER THIS SECTION AT THE TIME OF PURCHASE
.
ARTICLE 13
Transitional Provisions for Uniform Commercial Code
Amendments (2022)
PART 1
GENERAL PROVISIONS AND DEFINITIONS
4-13-101.  Short title. T
HIS ARTICLE 13 MAY BE CITED AS
"TRANSITIONAL PROVISIONS FOR UNIFORM COMMERCIAL CODE
AMENDMENTS (2022)".
4-13-102.  Definitions. (a)  I
N THIS ARTICLE 13:
(1)  "A
DJUSTMENT DATE" MEANS JULY 1, 2025, OR THE DATE THAT
IS ONE YEAR AFTER THE EFFECTIVE DATE OF THIS ARTICLE 
13, WHICHEVER
IS LATER
.
(2)  "A
RTICLE 12" MEANS ARTICLE 12 OF THIS TITLE 4.
(3)  "A
RTICLE 12 PROPERTY" MEANS A CONTROLLABLE ACCOUNT ,
CONTROLLABLE ELECTRONIC RECORD , OR CONTROLLABLE PAYMENT
PAGE 74-SENATE BILL 23-090 INTANGIBLE.
(b)  T
HE FOLLOWING DEFINITIONS IN OTHER ARTICLES OF THIS TITLE
4 APPLY TO THIS ARTICLE 13.
"C
ONTROLLABLE ACCOUNT "S	ECTION 4-9-102. 
"C
ONTROLLABLE ELECTRONIC RECORD "S ECTION 4-12-102. 
"C
ONTROLLABLE PAYMENT INTANGIBLE "S ECTION 4-9-102. 
"E
LECTRONIC MONEY"S	ECTION 4-9-102. 
"F
INANCING STATEMENT"S	ECTION 4-9-102. 
(c)  A
RTICLE 1 OF THIS TITLE 4 CONTAINS GENERAL DEFINITIONS AND
PRINCIPLES OF CONSTRUCTION AND INTERPRETATION APPLICABLE
THROUGHOUT THIS ARTICLE 
13.
PART 2
GENERAL TRANSITIONAL PROVISION
4-13-201.  Saving clause. E
XCEPT AS PROVIDED IN PART 3 OF THIS
ARTICLE 
13, A TRANSACTION VALIDLY ENTERED INTO BEFORE THE EFFECTIVE
DATE OF THIS ARTICLE 
13 AND THE RIGHTS, DUTIES, AND INTERESTS FLOWING
FROM THE TRANSACTION REMAIN VALID THEREAFTER AND MAY BE
TERMINATED
, COMPLETED, CONSUMMATED, OR ENFORCED AS REQUIRED OR
PERMITTED BY LAW OTHER THAN THIS TITLE 
4 OR, IF APPLICABLE, THIS TITLE
4, AS THOUGH THIS ARTICLE 13 HAD NOT TAKEN EFFECT.
PART 3
TRANSITIONAL PROVISIONS FOR
ARTICLES 9 AND 12 OF THIS TITLE 4
4-13-301.  Saving clause. (a)  E
XCEPT AS PROVIDED IN THIS PART 3,
ARTICLE 9, AS AMENDED BY SENATE BILL 23-090, ENACTED IN 2023, AND
ARTICLE 
12 OF THIS TITLE 4, AS ENACTED BY SENATE BILL 23-090, ENACTED
IN 
2023, APPLY TO A TRANSACTION, LIEN, OR OTHER INTEREST IN PROPERTY,
EVEN IF THE TRANSACTION , LIEN, OR INTEREST WAS ENTERED INTO ,
CREATED, OR ACQUIRED BEFORE THE EFFECTIVE DATE OF THIS ARTICLE 13.
PAGE 75-SENATE BILL 23-090 (b)  EXCEPT AS PROVIDED IN SUBSECTION (c) OF THIS SECTION AND
SECTIONS 
4-13-302 TO 4-13-306:
(1)  A
 TRANSACTION, LIEN, OR INTEREST IN PROPERTY THAT WAS
VALIDLY ENTERED INTO
, CREATED, OR TRANSFERRED BEFORE THE EFFECTIVE
DATE OF THIS ARTICLE 
13 AND THAT WAS NOT GOVERNED BY THIS TITLE 4,
BUT WOULD BE SUBJECT TO ARTICLE 9 OF THIS TITLE 4, AS AMENDED BY
SENATE BILL 23-090, ENACTED IN 2023, OR ARTICLE 12 OF THIS TITLE 4, AS
ENACTED BY 
SENATE BILL 23-090, ENACTED IN 2023, IF IT HAD BEEN
ENTERED INTO
, CREATED, OR TRANSFERRED ON OR AFTER THE EFFECTIVE
DATE OF THIS ARTICLE 
13, INCLUDING THE RIGHTS, DUTIES, AND INTERESTS
FLOWING FROM THE TRANSACTION
, LIEN, OR INTEREST, REMAINS VALID ON
AND AFTER THE EFFECTIVE DATE OF THIS ARTICLE 
13; AND
(2)  THE TRANSACTION, LIEN, OR INTEREST MAY BE TERMINATED ,
COMPLETED, CONSUMMATED, AND ENFORCED AS REQUIRED OR PERMITTED
BY THIS TITLE 
4, AS AMENDED BY SENATE BILL 23-090, ENACTED IN 2023,
OR BY THE LAW THAT WOULD APPLY IF THIS TITLE 4, AS AMENDED BY
SENATE BILL 23-090, ENACTED IN 2023, HAD NOT TAKEN EFFECT.
(c)  T
HIS ARTICLE 13 DOES NOT AFFECT AN ACTION , CASE, OR
PROCEEDING COMMENCED BEFORE THE EFFECTIVE DATE OF THIS ARTICLE 
13.
4-13-302.  Security interest perfected before effective date. (a)  A
SECURITY INTEREST THAT IS ENFORCEABLE AND PERFECTED IMMEDIATELY
BEFORE THE EFFECTIVE DATE OF THIS ARTICLE 
13 IS A PERFECTED SECURITY
INTEREST UNDER THIS TITLE 
4 IF, ON THE EFFECTIVE DATE OF THIS ARTICLE
13, THE REQUIREMENTS FOR ENFORCEABILITY AND PERFECTION UNDER THIS
TITLE 
4 ARE SATISFIED WITHOUT FURTHER ACTION .
(b)  I
F A SECURITY INTEREST IS ENFORCEABLE AND PERFECTED
IMMEDIATELY BEFORE THE EFFECTIVE DATE OF THIS ARTICLE 
13, BUT THE
REQUIREMENTS FOR ENFORCEABILITY OR PERFECTION UNDER THIS TITLE 
4
ARE NOT SATISFIED ON THE EFFECTIVE DATE OF THIS ARTICLE 13, THE
SECURITY INTEREST
:
(1)  I
S A PERFECTED SECURITY INTEREST UNTIL THE EARLIER OF THE
TIME PERFECTION WOULD HAVE CEASED UNDER THE LAW IN EFFECT
IMMEDIATELY BEFORE THE EFFECTIVE DATE OF THIS ARTICLE 
13 OR THE
ADJUSTMENT DATE
;
PAGE 76-SENATE BILL 23-090 (2)  REMAINS ENFORCEABLE THEREAFTER ONLY IF THE SECURITY
INTEREST SATISFIES THE REQUIREMENTS FOR ENFORCEABILITY UNDER
SECTION 
4-9-203, AS AMENDED BY SENATE BILL 23-090, ENACTED IN 2023,
BEFORE THE ADJUSTMENT DATE ; AND
(3)  REMAINS PERFECTED THEREAFTER ONLY IF THE REQUIREMENTS
FOR PERFECTION UNDER THIS TITLE 
4 ARE SATISFIED BEFORE THE TIME
SPECIFIED IN SUBSECTION
 (b)(1) OF THIS SECTION.
4-13-303.  Security interest unperfected before effective date. A
SECURITY INTEREST THAT IS ENFORCEABLE IMMEDIATELY BEFORE THE
EFFECTIVE DATE OF THIS ARTICLE 
13 BUT IS UNPERFECTED AT THAT TIME:
(1)  R
EMAINS AN ENFORCEABLE SECURITY INTEREST UNTIL THE
ADJUSTMENT DATE
;
(2)  R
EMAINS ENFORCEABLE THEREAFTER IF THE SECURITY INTEREST
BECOMES ENFORCEABLE UNDER SECTION 
4-9-203, AS AMENDED BY SENATE
BILL 23-090, ENACTED IN 2023, ON THE EFFECTIVE DATE OF THIS ARTICLE 13
OR BEFORE THE ADJUSTMENT DATE ; AND
(3)  BECOMES PERFECTED:
(A)  W
ITHOUT FURTHER ACTION, ON THE EFFECTIVE DATE OF THIS
ARTICLE 
13, IF THE REQUIREMENTS FOR PERFECTION UNDER THIS TITLE 4 ARE
SATISFIED BEFORE OR AT THAT TIME
; OR
(B)  WHEN THE REQUIREMENTS FOR PERFECTION ARE SATISFIED IF
THE REQUIREMENTS ARE SATISFIED AFTER THAT TIME
.
4-13-304.  Effectiveness of actions taken before effective date.
(a)  I
F ACTION, OTHER THAN THE FILING OF A FINANCING STATEMENT , IS
TAKEN BEFORE THE EFFECTIVE DATE OF THIS ARTICLE 
13 AND THE ACTION
WOULD HAVE RESULTED IN PERFECTION OF THE SECURITY INTEREST HAD THE
SECURITY INTEREST BECOME ENFORCEABLE BEFORE THE EFFECTIVE DATE OF
THIS ARTICLE 
13, THE ACTION IS EFFECTIVE TO PERFECT A SECURITY
INTEREST THAT ATTACHES UNDER THIS TITLE 
4 BEFORE THE ADJUSTMENT
DATE
. AN ATTACHED SECURITY INTEREST BECOMES UNPERFECTED ON THE
ADJUSTMENT DATE UNLESS THE SECURITY INTEREST BECOMES A PERFECTED
SECURITY INTEREST UNDER THIS TITLE 
4 BEFORE THE ADJUSTMENT DATE .
PAGE 77-SENATE BILL 23-090 (b)  THE FILING OF A FINANCING STATEMENT BEFORE THE EFFECTIVE
DATE OF THIS ARTICLE 
13 IS EFFECTIVE TO PERFECT A SECURITY INTEREST ON
THE EFFECTIVE DATE OF THIS ARTICLE 
13 TO THE EXTENT THE FILING WOULD
SATISFY THE REQUIREMENTS FOR PERFECTION UNDER THIS TITLE 
4.
(c)  T
HE TAKING OF AN ACTION BEFORE THE EFFECTIVE DATE OF THIS
ARTICLE 
13 IS SUFFICIENT FOR THE ENFORCEABILITY OF A SECURITY
INTEREST ON THE EFFECTIVE DATE OF THIS ARTICLE 
13 IF THE ACTION WOULD
SATISFY THE REQUIREMENTS FOR ENFORCEABILITY UNDER THIS TITLE 
4.
4-13-305.  Priority. (a)  S
UBJECT TO SUBSECTIONS (b) AND (c) OF
THIS SECTION
, THIS TITLE 4 DETERMINES THE PRIORITY OF CONFLICTING
CLAIMS TO COLLATERAL
.
(b)  S
UBJECT TO SUBSECTION (c) OF THIS SECTION, IF THE PRIORITIES
OF CLAIMS TO COLLATERAL WERE ESTABLISHED BEFORE THE EFFECTIVE DATE
OF THIS ARTICLE 
13, ARTICLE 9 OF THIS TITLE 4 AS IN EFFECT BEFORE THE
EFFECTIVE DATE OF THIS ARTICLE 
13 DETERMINES PRIORITY.
(c)  O
N THE ADJUSTMENT DATE , TO THE EXTENT THE PRIORITIES
DETERMINED BY ARTICLE 
9 OF THIS TITLE 4, AS AMENDED BY SENATE BILL
23-090, ENACTED IN 2023, MODIFY THE PRIORITIES ESTABLISHED BEFORE
THE EFFECTIVE DATE OF THIS ARTICLE 
13, THE PRIORITIES OF CLAIMS TO
ARTICLE 
12 PROPERTY AND ELECTRONIC MONEY ESTABLISHED BEFORE THE
EFFECTIVE DATE OF THIS ARTICLE 
13 CEASE TO APPLY.
4-13-306.  Priority of claims when priority rules of article 9 do
not apply. (a)  S
UBJECT TO SUBSECTIONS (b) AND (c) OF THIS SECTION,
ARTICLE 12 OF THIS TITLE 4, AS ENACTED BY SENATE BILL 23-090, ENACTED
IN 
2023, DETERMINES THE PRIORITY OF CONFLICTING CLAIMS TO ARTICLE 12
PROPERTY WHEN THE PRIORITY RULES OF ARTICLE 9 OF THIS TITLE 4, AS
AMENDED BY 
SENATE BILL 23-090, ENACTED IN 2023, DO NOT APPLY.
(b)  S
UBJECT TO SUBSECTION (c) OF THIS SECTION, WHEN THE
PRIORITY RULES OF ARTICLE 
9 OF THIS TITLE 4, AS AMENDED BY SENATE BILL
23-090, ENACTED IN 2023, DO NOT APPLY AND THE PRIORITIES OF CLAIMS TO
ARTICLE 
12 PROPERTY WERE ESTABLISHED BEFORE THE EFFECTIVE DATE OF
THIS ACT
, LAW OTHER THAN THIS ARTICLE 12 DETERMINES PRIORITY.
(c)  W
HEN THE PRIORITY RULES OF ARTICLE 9 OF THIS TITLE 4, AS
PAGE 78-SENATE BILL 23-090 AMENDED BY SENATE BILL 23-090, ENACTED IN 2023, DO NOT APPLY, TO
THE EXTENT THE PRIORITIES DETERMINED BY THIS TITLE 
4 MODIFY THE
PRIORITIES ESTABLISHED BEFORE THE EFFECTIVE DATE OF THIS ARTICLE 
13,
THE PRIORITIES OF CLAIMS TO ARTICLE 12 PROPERTY ESTABLISHED BEFORE
THE EFFECTIVE DATE OF THIS ARTICLE 
13 CEASE TO APPLY ON THE
ADJUSTMENT DATE
.
SECTION 90. Act subject to petition - effective date. This act
takes effect at 12:01 a.m. on the day following the expiration of the
ninety-day period after final adjournment of the general assembly; except
that, if a referendum petition is filed pursuant to section 1 (3) of article V
of the state constitution against this act or an item, section, or part of this act
within such period, then the act, item, section, or part will not take effect
unless approved by the people at the general election to be held in
PAGE 79-SENATE BILL 23-090 November 2024 and, in such case, will take effect on the date of the official
declaration of the vote thereon by the governor.
____________________________  ____________________________
Steve Fenberg Julie McCluskie
PRESIDENT OF SPEAKER OF THE HOUSE
THE SENATE OF REPRESENTATIVES
____________________________  ____________________________
Cindi L. Markwell Robin Jones
SECRETARY OF CHIEF CLERK OF THE HOUSE
THE SENATE OF REPRESENTATIVES
            APPROVED________________________________________
                                                        (Date and Time)
                              _________________________________________
                             Jared S. Polis
                             GOVERNOR OF THE STATE OF COLORADO
PAGE 80-SENATE BILL 23-090