CO Code § 4-9-623 (2021)
2021 Colorado Code|Title 4 - Uniform Commercial Code|Article 9 - Secured Transactions|Part 6 - Default|§ 4-9-623. Right to Redeem Collateral

  A debtor, any secondary obligor, or any other secured party or lienholder may redeem collateral.    To redeem collateral, a person shall tender:   Fulfillment of all obligations secured by the collateral; and    The reasonable expenses and reasonable attorney's fees described in section 4-9-615 (a)(1).       A redemption may occur at any time before a secured party:   Has collected collateral under section 4-9-607;    Has disposed of collateral or entered into a contract for its disposition under section 4-9-610; or    Has accepted collateral in full or partial satisfaction of the obligation it secures under section 4-9-622.        History. Source: L. 2001: Entire article R&RE, p. 1416, § 1, effective July 1.    Editor's note:    This section is similar to former § 4-9-506 as it existed prior to 2001.    Colorado legislative change: Colorado added the word “reasonable” before the word “attorney's” in subsection (b)(2).     OFFICIAL COMMENT   1. Source. Former Section 9-506.   2. Redemption Right. Under this section, as under former Section 9-506, the debtor or another secured party may redeem collateral as long as the secured party has not collected (Section 9-607), disposed of or contracted for the disposition of (Section 9-610), or accepted (Section 9-620) the collateral. Although this section generally follows former Section 9-506, it extends the right of redemption to holders of nonconsensual liens. To redeem the collateral a person must tender fulfillment of all obligations secured, plus certain expenses. If the entire balance of a secured obligation has been accelerated, it would be necessary to tender the entire balance. A tender of fulfillment obviously means more than a new promise to perform an existing promise. It requires payment in full of all monetary obligations then due and performance in full of all other obligations then matured. If unmatured secured obligations remain, the security interest continues to secure them (i.e., as if there had been no default).   3. Redemption of Remaining Collateral Following Partial Enforcement. Under Section 9-610 a secured party may make successive dispositions of portions of its collateral. These dispositions would not affect the debtor's, another secured party's, or a lienholder's right to redeem the remaining collateral.   4. Effect of “Repledging.” Section 9-207 generally permits a secured party having possession or control of collateral to create a security interest in the collateral. As explained in the Comments to that section, the debtor's right (as opposed to its practical ability) to redeem collateral is not affected by, and does not affect, the priority of a security interest created by the debtor's secured party.   ANNOTATION   Law reviews. For article, “Secured Transactions — Part II: Default, Foreclosure and Bankruptcy”, see 12 Colo. Law. 13 . For article, “A Review of Agricultural Law: Hard Times and Hard Choices”, see 15 Colo. Law. 629 (1986). For article, “The Colorado Farm Homestead Protection Act”, see 15 Colo. Law. 1642 (1986). For article, “Agricultural Lending in a Troubled Economy”, see 16 Colo. Law. 1773 (1987). For article, “The Agricultural Credit Act of 1987”, see 17 Colo. Law. 611 (1988).   Annotator's note. Since § 4-9-623 is similar to § 4-9-506 as it existed prior to the 2001 repeal and reenactment of this article, relevant cases construing that provision have been included in the annotations to this section.   Applied in H.M.O. Sys. v. Choicecare Health Servs., Inc., 665 P.2d 635 (Colo. App. 1983); Task Enters., Inc. v. Pratt Adjustment Co., 695 P.2d 762 (Colo. App. 1984).