CO Code § 4-2.5-401 (2021)
2021 Colorado Code|Title 4 - Uniform Commercial Code|Article 2.5 - Leases|Part 4 - Performance of Lease Contract: Repudiated, Substituted and Excused|§ 4-2.5-401. Insecurity: Adequate Assurance of Performance

  A lease contract imposes an obligation on each party that the other's expectation of receiving due performance will not be impaired.    If reasonable grounds for insecurity arise with respect to the performance of either party, the insecure party may demand in writing adequate assurance of due performance. Until the insecure party receives that assurance, if commercially reasonable the insecure party may suspend any performance for which he or she has not already received the agreed return.    A repudiation of the lease contract occurs if assurance of due performance adequate under the circumstances of the particular case is not provided to the insecure party within a reasonable time, not to exceed thirty days after receipt of a demand by the other party.    Between merchants, the reasonableness of grounds for insecurity and the adequacy of any assurance offered must be determined according to commercial standards.    Acceptance of any nonconforming delivery or payment does not prejudice the aggrieved party's right to demand adequate assurance of future performance.     History. Source: L. 91: Entire article added, p. 297, § 1, effective July 1, 1992.    Cross references:   For offenses relating to this title, see part 5 of article 5 of title 18.   Official Comments   Copyright by the American Law Institute and the National Conference of Commissioners on Uniform State Laws. Reproduced with the permission of the Permanent Editorial Board for the Uniform Commercial Code. All rights reserved. —   Editor's note:   The Official Comments to the Uniform Commercial Code are available only in the printed book form of Colorado Revised Statutes. As noted above, the Official Comments are subject to copyright by the American Law Institute and the National Conference of Commissioners on Uniform State Laws. At this time, Colorado has a license to reprint the Official Comments in the printed book form.   Editor's note:    The National Conference of Commissioners on Uniform State Laws numbered this article as “2A”. In C.R.S., it is numbered as article “2.5”. References in the OFFICIAL COMMENTS to specific sections can be translated to C.R.S. numbers by changing “2A” to “2.5” and, where necessary, adding the appropriate title of C.R.S. For example, a reference in an OFFICIAL COMMENT to section “2A-101” would translate to section “4-2.5-101”.    The numbering and sequencing of C.R.S. subsections do not necessarily correspond with the numbering and sequencing of subsections in the uniform act.     OFFICIAL COMMENT   Uniform Statutory Source: Section 2-609.   Changes: Revised to reflect leasing practices and terminology. Note that in the analogue to subsection (3) (Section 2-609(4)), the adjective “justified” modifies demand. The adjective was deleted here as unnecessary, implying no substantive change.   Definitional Cross References:   “Aggrieved party”. Section 1-201(2).   “Agreed”. Section 1-201(3).   “Between merchants”. Section 2-104(3).   “Conforming”. Section 2A-103(1)(d).   “Delivery”. Section 1-201(14).   “Lease contract”. Section 2A-103(1)(l).   “Party”. Section 1-201(29).   “Reasonable time”. Section 1-204(1) and (2).   “Receipt”. Section 2-103(1)(c).   “Rights”. Section 1-201(36).   “Writing”. Section 1-201(46).