reglab/statecodes huggingface dataset:
2023 Colorado Revised Statutes › Title 4 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-13-306) › Article 2.5 - LEASES (§§ 4-2.5-101 — 4-2.5-533) › Part 5 - DEFAULT (§§ 4-2.5-501 — 4-2.5-533) › Subpart B - DEFAULT BY LESSOR (§§ 4-2.5-508 — 4-2.5-522) › Section 4-2.5-510 - Installment lease contracts: rejection and default

(1)
Under an installment lease contract a lessee may reject any delivery that is nonconforming if the nonconformity substantially impairs the value of that delivery and cannot be cured or the nonconformity is a defect in the required documents; but if the nonconformity does not fall within subsection (2) of this section and the lessor or the supplier gives adequate assurance of its cure, the lessee must accept that delivery.
(2)
Whenever nonconformity or default with respect to one or more deliveries substantially impairs the value of the installment lease contract as a whole there is a default with respect to the whole. But, the aggrieved party reinstates the installment lease contract as a whole if the aggrieved party accepts a nonconforming delivery without seasonably notifying of cancellation or brings an action with respect only to past deliveries or demands performance as to future deliveries.
L. 91: Entire article added, p. 305, § 1, effective 7/1/1992.
2023 Colorado Revised Statutes › Title 4 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-13-306) › Article 2.5 - LEASES (§§ 4-2.5-101 — 4-2.5-533) › Part 5 - DEFAULT (§§ 4-2.5-501 — 4-2.5-533) › Subpart B - DEFAULT BY LESSOR (§§ 4-2.5-508 — 4-2.5-522) › Section 4-2.5-511 - Merchant lessee's duties as to rightfully rejected goods

(1)
Subject to any security interest of a lessee (section
4-2.5-508 (5)
), if a lessor or a supplier has no agent or place of business at the market of rejection, a merchant lessee, after rejection of goods in his or her possession or control, shall follow any reasonable instructions received from the lessor or the supplier with respect to the goods. In the absence of those instructions, a merchant lessee shall make reasonable efforts to sell, lease, or otherwise dispose of the goods for the lessor's account if they threaten to decline in value speedily. Instructions are not reasonable if on demand indemnity for expenses is not forthcoming.
(2)
If a merchant lessee (subsection (1)) or any other lessee (section
4-2.5-512
) disposes of goods, he or she is entitled to reimbursement either from the lessor or the supplier or out of the proceeds for reasonable expenses of caring for and disposing of the goods and, if the expenses include no disposition commission, to such commission as is usual in the trade, or if there is none, to a reasonable sum not exceeding ten percent of the gross proceeds.
(3)
In complying with this section or section
4-2.5-512
, the lessee is held only to good faith. Good faith conduct hereunder is neither acceptance or conversion nor the basis of an action for damages.
(4)
A purchaser who purchases in good faith from a lessee pursuant to this section or section
4-2.5-512
takes the goods free of any rights of the lessor and the supplier even though the lessee fails to comply with one or more of the requirements of this article.
L. 91: Entire article added, p. 306, § 1, effective 7/1/1992.
2023 Colorado Revised Statutes › Title 4 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-13-306) › Article 2.5 - LEASES (§§ 4-2.5-101 — 4-2.5-533) › Part 5 - DEFAULT (§§ 4-2.5-501 — 4-2.5-533) › Subpart B - DEFAULT BY LESSOR (§§ 4-2.5-508 — 4-2.5-522) › Section 4-2.5-512 - Lessee's duties as to rightfully rejected goods

(1)
Except as otherwise provided with respect to goods that threaten to decline in value speedily (section
4-2.5-511
) and subject to any security interest of a lessee (section
4-2.5-508 (5)
):
(a)
The lessee, after rejection of goods in the lessee's possession, shall hold them with reasonable care at the lessor's or the supplier's disposition for a reasonable time after the lessee's seasonable notification of rejection;
(b)
If the lessor or the supplier gives no instructions within a reasonable time after notification of rejection, the lessee may store the rejected goods for the lessor's or the supplier's account or ship them to the lessor or the supplier or dispose of them for the lessor's or the supplier's account with reimbursement in the manner provided in section
4-2.5-511
; but
(c)
The lessee has no further obligations with regard to goods rightfully rejected.
(2)
Action by the lessee pursuant to subsection (1) of this section is not acceptance or conversion.
L. 91: Entire article added, p. 306, § 1, effective 7/1/1992.
2023 Colorado Revised Statutes › Title 4 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-13-306) › Article 2.5 - LEASES (§§ 4-2.5-101 — 4-2.5-533) › Part 5 - DEFAULT (§§ 4-2.5-501 — 4-2.5-533) › Subpart B - DEFAULT BY LESSOR (§§ 4-2.5-508 — 4-2.5-522) › Section 4-2.5-513 - Cure by lessor of improper tender or delivery; replacement

(1)
If any tender or delivery by the lessor or the supplier is rejected because nonconforming and the time for performance has not yet expired, the lessor or the supplier may seasonably notify the lessee of the lessor's or the supplier's intention to cure and may then make a conforming delivery within the time provided in the lease contract.
(2)
If the lessee rejects a nonconforming tender that the lessor or the supplier had reasonable grounds to believe would be acceptable with or without money allowance, the lessor or the supplier may have a further reasonable time to substitute a conforming tender if he or she seasonably notifies the lessee.
L. 91: Entire article added, p. 307, § 1, effective 7/1/1992.
2023 Colorado Revised Statutes › Title 4 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-13-306) › Article 2.5 - LEASES (§§ 4-2.5-101 — 4-2.5-533) › Part 5 - DEFAULT (§§ 4-2.5-501 — 4-2.5-533) › Subpart B - DEFAULT BY LESSOR (§§ 4-2.5-508 — 4-2.5-522) › Section 4-2.5-514 - Waiver of lessee's objections

(1)
In rejecting goods, a lessee's failure to state a particular defect that is ascertainable by reasonable inspection precludes the lessee from relying on the defect to justify rejection or to establish default:
(a)
If, stated seasonably, the lessor or the supplier could have cured it (section
4-2.5-513
); or
(b)
Between merchants if the lessor or the supplier after rejection has made a request in writing for a full and final written statement of all defects on which the lessee proposes to rely.
(2)
A lessee's failure to reserve rights when paying rent or other consideration against documents precludes recovery of the payment for defects apparent in the documents.
L. 91: Entire article added, p. 307, § 1, effective 7/1/1992. L. 2006: (2) amended, p. 494, § 18, effective September 1.
2023 Colorado Revised Statutes › Title 4 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-13-306) › Article 2.5 - LEASES (§§ 4-2.5-101 — 4-2.5-533) › Part 5 - DEFAULT (§§ 4-2.5-501 — 4-2.5-533) › Subpart B - DEFAULT BY LESSOR (§§ 4-2.5-508 — 4-2.5-522) › Section 4-2.5-515 - Acceptance of goods

(1)
Acceptance of goods occurs after the lessee has had a reasonable opportunity to inspect the goods and:
(a)
The lessee signifies or acts with respect to the goods in a manner that signifies to the lessor or the supplier that the goods are conforming or that the lessee will take or retain them in spite of their nonconformity; or
(b)
The lessee fails to make an effective rejection of the goods (section
4-2.5-509 (2)
).
(2)
Acceptance of a part of any commercial unit is acceptance of that entire unit.
L. 91: Entire article added, p. 308, § 1, effective 7/1/1992.
2023 Colorado Revised Statutes › Title 4 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-13-306) › Article 2.5 - LEASES (§§ 4-2.5-101 — 4-2.5-533) › Part 5 - DEFAULT (§§ 4-2.5-501 — 4-2.5-533) › Subpart B - DEFAULT BY LESSOR (§§ 4-2.5-508 — 4-2.5-522) › Section 4-2.5-516 - Effect of acceptance of goods; notice of default; burden of establishing default after acceptance; notice of claim or litigation to person answerable over

(1)
A lessee must pay rent for any goods accepted in accordance with the lease contract with due allowance for goods rightfully rejected or not delivered.
(2)
A lessee's acceptance of goods precludes rejection of the goods accepted. In the case of a finance lease, if made with knowledge of a nonconformity, acceptance cannot be revoked because of it. In any other case, if made with knowledge of a nonconformity, acceptance cannot be revoked because of it unless the acceptance was on the reasonable assumption that the nonconformity would be seasonably cured. Acceptance does not of itself impair any other remedy provided by this article or the lease agreement for nonconformity.
(3)
If a tender has been accepted:
(a)
Within a reasonable time after the lessee discovers or should have discovered any default, the lessee shall notify the lessor and the supplier, if any, or be barred from any remedy against the party not notified;
(b)
Except in the case of a consumer lease, within a reasonable time after the lessee receives notice of litigation for infringement or the like (section
4-2.5-211
) the lessee shall notify the lessor or be barred from any remedy over for liability established by the litigation; and
(c)
The burden is on the lessee to establish any default.
(4)
If a lessee is sued for breach of a warranty or other obligation for which a lessor or a supplier is answerable over the following apply:
(a)
The lessee may give the lessor or the supplier, or both, written notice of the litigation. If the notice states that the person notified may come in and defend and that if the person notified does not do so that person will be bound in any action against that person by the lessee by any determination of fact common to the two litigations, then unless the person notified after seasonable receipt of the notice does come in and defend that person is so bound.
(b)
The lessor or the supplier may demand in writing that the lessee turn over control of the litigation including settlement if the claim is one for infringement or the like (section
4-2.5-211
) or else be barred from any remedy over. If the demand states that the lessor or the supplier agrees to bear all expense and to satisfy any adverse judgment, then unless the lessee after seasonable receipt of the demand does turn over control the lessee is so barred.
(5)
Subsections (3) and (4) of this section apply to any obligation of a lessee to hold the lessor or the supplier harmless against infringement or the like (section
4-2.5-211
).
L. 91: Entire article added, p. 308, § 1, effective 7/1/1992.
2023 Colorado Revised Statutes › Title 4 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-13-306) › Article 2.5 - LEASES (§§ 4-2.5-101 — 4-2.5-533) › Part 5 - DEFAULT (§§ 4-2.5-501 — 4-2.5-533) › Subpart B - DEFAULT BY LESSOR (§§ 4-2.5-508 — 4-2.5-522) › Section 4-2.5-517 - Revocation of acceptance of goods

(1)
A lessee may revoke acceptance of a lot or commercial unit whose nonconformity substantially impairs its value to the lessee if he or she has accepted it:
(a)
Except in the case of a finance lease, on the reasonable assumption that its nonconformity would be cured and it has not been seasonably cured; or
(b)
Without discovery of the nonconformity if the lessee's acceptance was reasonably induced either by the lessor's assurances or, except in the case of a finance lease, by the difficulty of discovery before acceptance.
(2)
Except in the case of a finance lease that is not a consumer lease, a lessee may revoke acceptance of a lot or commercial unit if the lessor defaults under the lease contract and the default substantially impairs the value of that lot or commercial unit to the lessee.
(3)
If the lease agreement so provides, the lessee may revoke acceptance of a lot or commercial unit because of other defaults by the lessor.
(4)
Revocation of acceptance must occur within a reasonable time after the lessee discovers or should have discovered the ground for it and before any substantial change in condition of the goods which is not caused by the nonconformity. Revocation is not effective until the lessee notifies the lessor.
(5)
A lessee who so revokes has the same rights and duties with regard to the goods involved as if the lessee had rejected them.
L. 91: Entire article added, p. 309, § 1, effective 7/1/1992.
2023 Colorado Revised Statutes › Title 4 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-13-306) › Article 2.5 - LEASES (§§ 4-2.5-101 — 4-2.5-533) › Part 5 - DEFAULT (§§ 4-2.5-501 — 4-2.5-533) › Subpart B - DEFAULT BY LESSOR (§§ 4-2.5-508 — 4-2.5-522) › Section 4-2.5-518 - Cover; substitute goods

(1)
After a default by a lessor under the lease contract of the type described in section
4-2.5-508 (1)
, or, if agreed, after other default by the lessor, the lessee may cover by making any purchase or lease of or contract to purchase or lease goods in substitution for those due from the lessor.
(2)
Except as otherwise provided with respect to damages liquidated in the lease agreement (section
4-2.5-504
) or otherwise determined pursuant to agreement of the parties (sections
4-1-302
and
4-2.5-503
), if a lessee's cover is by lease agreement substantially similar to the original lease agreement and the lease agreement is made in good faith and in a commercially reasonable manner, the lessee may recover from the lessor as damages (i) the present value, as of the date of the commencement of the term of the new lease agreement, of the rent under the new lease agreement applicable to that period of the new lease term that is comparable to the then remaining term of the original lease agreement minus the present value as of the same date of the total rent for the then remaining lease term of the original lease agreement, (ii) interest on the amount computed under clause (i) of this subsection (2) from the date of the commencement of the term of the new lease agreement until the date of entry of judgment at the same rate used in computing present value, and (iii) any incidental or consequential damages less expenses saved in consequence of the lessor's default.
(3)
If a lessee's cover is by lease agreement that for any reason does not qualify for treatment under subsection (2) of this section, or is by purchase or otherwise, the lessee may recover from the lessor as if the lessee had elected not to cover and section
4-2.5-519
governs.
L. 91: Entire article added, p. 310, § 1, effective 7/1/1992. L. 2006: (2) amended, p. 494, § 19, effective September 1.
Colorado legislative change.
In subsection (2) of this section, after the words "term of the original lease agreement,", Colorado inserted a new clause as follows: "(ii) interest on the amount computed under clause (i) of this subsection (2) from the date of the commencement of the term of the new lease agreement until the date of entry of judgment at the same rate used in computing present value,". The second clause was then relettered as clause "(iii)".
2023 Colorado Revised Statutes › Title 4 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-13-306) › Article 2.5 - LEASES (§§ 4-2.5-101 — 4-2.5-533) › Part 5 - DEFAULT (§§ 4-2.5-501 — 4-2.5-533) › Subpart B - DEFAULT BY LESSOR (§§ 4-2.5-508 — 4-2.5-522) › Section 4-2.5-519 - Lessee's damages for nondelivery, repudiation, default and breach of warranty in regard to accepted goods

(1)
Except as otherwise provided with respect to damages liquidated in the lease agreement (section
4-2.5-504
) or otherwise determined pursuant to agreement of the parties (sections
4-1-302
and
4-2.5-503
), if a lessee elects not to cover or a lessee elects to cover and the cover is by lease agreement that for any reason does not qualify for treatment under section
4-2.5-518 (2)
, or is by purchase or otherwise, the lessee may recover from the lessor as damages for nondelivery or repudiation by the lessor or for rejection or revocation of acceptance by the lessee the present value, as of the date of the default, of the then market rent minus the present value as of the same date of the original rent, computed for the remaining lease term of the original lease agreement, plus interest on the remainder so computed from the date of default until the date of entry of judgment at the same rate used in computing present value, together with incidental and consequential damages, less expenses saved in consequence of the lessor's default.
(2)
Market rent is to be determined as of the place for tender or, in cases of rejection after arrival or revocation of acceptance, as of the place of arrival.
(3)
Except as otherwise agreed if the lessee has accepted goods and given notification (section
4-2.5-516 (3)
), the measure of damages for non-conforming tender or delivery or other default by a lessor is the loss resulting in the ordinary course of events from the lessor's default as determined in any manner that is reasonable together with incidental and consequential damages, less expenses saved in consequence of the lessor's default.
(4)
Except as otherwise agreed, the measure of damages for breach of warranty is the present value at the time and place of acceptance of the difference between the value of the use of the goods accepted and the value if they had been as warranted for the lease term, unless special circumstances show proximate damages of a different amount, together with incidental and consequential damages, less expenses saved in consequence of the lessor's default or breach of warranty.
L. 91: Entire article added, p. 310, § 1, effective 7/1/1992. L. 2006: (1) amended, p. 494, § 20, effective September 1.
Colorado legislative change. In subsection (1) of this section, after the words "by purchase or otherwise,", Colorado deleted the words "the measure of" and substituted the words "the lessee may recover from the lessor as", and, after the words "original lease agreement,", Colorado inserted the words "plus interest on the remainder so computed from the date of default until the date of entry of judgment at the same rate used in computing present value,".
2023 Colorado Revised Statutes › Title 4 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-13-306) › Article 2.5 - LEASES (§§ 4-2.5-101 — 4-2.5-533) › Part 5 - DEFAULT (§§ 4-2.5-501 — 4-2.5-533) › Subpart B - DEFAULT BY LESSOR (§§ 4-2.5-508 — 4-2.5-522) › Section 4-2.5-520 - Lessee's incidental and consequential damages

(1)
Incidental damages resulting from a lessor's default include expenses reasonably incurred in inspection, receipt, transportation, and care and custody of goods rightfully rejected or goods the acceptance of which is justifiably revoked, any commercially reasonable charges, expenses or commissions in connection with effecting cover, and any other reasonable expense incident to the default.
(2)
Consequential damages resulting from a lessor's default include:
(a)
Any loss resulting from general or particular requirements and needs of which the lessor at the time of contracting had reason to know and which could not reasonably be prevented by cover or otherwise; and
(b)
Injury to person or property proximately resulting from any breach of warranty.
L. 91: Entire article added, p. 311, § 1, effective 7/1/1992.
2023 Colorado Revised Statutes › Title 4 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-13-306) › Article 2.5 - LEASES (§§ 4-2.5-101 — 4-2.5-533) › Part 5 - DEFAULT (§§ 4-2.5-501 — 4-2.5-533) › Subpart B - DEFAULT BY LESSOR (§§ 4-2.5-508 — 4-2.5-522) › Section 4-2.5-521 - Lessee's right to specific performance or replevin

(1)
Specific performance may be decreed if the goods are unique or in other proper circumstances.
(2)
A decree for specific performance may include any terms and conditions as to payment of the rent, damages, or other relief that the court deems just.
(3)
A lessee has a right of replevin, detinue, sequestration, claim and delivery, or the like for goods identified to the lease contract if after reasonable effort the lessee is unable to effect cover for those goods or the circumstances reasonably indicate that the effort will be unavailing.
L. 91: Entire article added, p. 312, § 1, effective 7/1/1992.
2023 Colorado Revised Statutes › Title 4 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-13-306) › Article 2.5 - LEASES (§§ 4-2.5-101 — 4-2.5-533) › Part 5 - DEFAULT (§§ 4-2.5-501 — 4-2.5-533) › Subpart B - DEFAULT BY LESSOR (§§ 4-2.5-508 — 4-2.5-522) › Section 4-2.5-522 - Lessee's right to goods on lessor's insolvency

(1)
Subject to subsection (2) of this section and even though the goods have not been shipped, a lessee who has paid a part or all of the rent and security for goods identified to a lease contract (section
4-2.5-217
) on making and keeping good a tender of any unpaid portion of the rent and security due under the lease contract may recover the goods identified from the lessor if the lessor becomes insolvent within ten days after receipt of the first installment of rent and security.
(2)
A lessee acquires the right to recover goods identified to a lease contract only if they conform to the lease contract.
L. 91: Entire article added, p. 312, § 1, effective 7/1/1992.
2023 Colorado Revised Statutes › Title 4 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-13-306) › Article 2.5 - LEASES (§§ 4-2.5-101 — 4-2.5-533) › Part 5 - DEFAULT (§§ 4-2.5-501 — 4-2.5-533) › Subpart C - DEFAULT BY LESSEE (§§ 4-2.5-523 — 4-2.5-533) › Section 4-2.5-523 - Lessor's remedies

(1)
If a lessee wrongfully rejects or revokes acceptance of goods or fails to make a payment when due or repudiates with respect to a part or the whole, then, with respect to any goods involved, and with respect to all of the goods if under an installment lease contract the value of the whole lease contract is substantially impaired (section
4-2.5-510
), the lessee is in default under the lease contract and the lessor may:
(a)
Cancel the lease contract (section
4-2.5-505 (1)
);
(b)
Proceed respecting goods not identified to the lease contract (section
4-2.5-524
);
(c)
Withhold delivery of the goods and take possession of goods previously delivered (section
4-2.5-525
);
(d)
Stop delivery of the goods by any bailee (section
4-2.5-526
);
(e)
Dispose of the goods and recover damages (section
4-2.5-527
), or retain the goods and recover damages (section
4-2.5-528
), or in a proper case recover rent (section
4-2.5-529
);
(f)
Exercise any other rights or pursue any other remedies provided in the lease contract.
(2)
If a lessor does not fully exercise a right or obtain a remedy to which the lessor is entitled under subsection (1) of this section, the lessor may recover the loss resulting in the ordinary course of events from the lessee's default as determined in any reasonable manner, together with incidental damages, less expenses saved in consequence of the lessee's default.
(3)
If a lessee is otherwise in default under a lease contract, the lessor may exercise the rights and pursue the remedies provided in the lease contract, which may include a right to cancel the lease. In addition, unless otherwise provided in the lease contract:
(a)
If the default substantially impairs the value of the lease contract to the lessor, the lessor may exercise the rights and pursue the remedies provided in subsections (1) or (2) of this section; or
(b)
If the default does not substantially impair the value of the lease contract to the lessor, the lessor may recover as provided in subsection (2) of this section.
L. 91: Entire article added, p. 312, § 1, effective 7/1/1992.
2023 Colorado Revised Statutes › Title 4 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-13-306) › Article 2.5 - LEASES (§§ 4-2.5-101 — 4-2.5-533) › Part 5 - DEFAULT (§§ 4-2.5-501 — 4-2.5-533) › Subpart C - DEFAULT BY LESSEE (§§ 4-2.5-523 — 4-2.5-533) › Section 4-2.5-524 - Lessor's right to identify goods to lease contract

(1)
A lessor aggrieved under section
4-2.5-523 (1)
may:
(a)
Identify to the lease contract conforming goods not already identified if at the time the lessor learned of the default they were in the lessor's or the supplier's possession or control; and
(b)
Dispose of goods (section
4-2.5-527 (1)
) that demonstrably have been intended for the particular lease contract even though those goods are unfinished.
(2)
If the goods are unfinished, in the exercise of reasonable commercial judgment for the purposes of avoiding loss and of effective realization, an aggrieved lessor or the supplier may either complete manufacture and wholly identify the goods to the lease contract or cease manufacture and lease, sell, or otherwise dispose of the goods for scrap or salvage value or proceed in any other reasonable manner.
L. 91: Entire article added, p. 313, § 1, effective 7/1/1992.
2023 Colorado Revised Statutes › Title 4 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-13-306) › Article 2.5 - LEASES (§§ 4-2.5-101 — 4-2.5-533) › Part 5 - DEFAULT (§§ 4-2.5-501 — 4-2.5-533) › Subpart C - DEFAULT BY LESSEE (§§ 4-2.5-523 — 4-2.5-533) › Section 4-2.5-525 - Lessor's right to possession of goods

(1)
If a lessor discovers the lessee to be insolvent, the lessor may refuse to deliver the goods.
(2)
After a default by the lessee under the lease contract of the type described in section
4-2.5-523 (1)
or
4-2.5-523 (3)(a)
or, if agreed, after other default by the lessee, the lessor has the right to take possession of the goods. If the lease contract so provides, the lessor may require the lessee to assemble the goods and make them available to the lessor at a place to be designated by the lessor which is reasonably convenient to both parties. Without removal, the lessor may render unusable any goods employed in trade or business, and may dispose of goods on the lessee's premises (section
4-2.5-527
).
(3)
The lessor may proceed under subsection (2) of this section without judicial process if it can be done without breach of the peace or the lessor may proceed by action.
L. 91: Entire article added, p. 314, § 1, effective 7/1/1992.
2023 Colorado Revised Statutes › Title 4 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-13-306) › Article 2.5 - LEASES (§§ 4-2.5-101 — 4-2.5-533) › Part 5 - DEFAULT (§§ 4-2.5-501 — 4-2.5-533) › Subpart C - DEFAULT BY LESSEE (§§ 4-2.5-523 — 4-2.5-533) › Section 4-2.5-526 - Lessor's stoppage of delivery in transit or otherwise

(1)
A lessor may stop delivery of goods in the possession of a carrier or other bailee if the lessor discovers the lessee to be insolvent and may stop delivery of carload, truckload, planeload, or larger shipments of express or freight if the lessee repudiates or fails to make a payment due before delivery, whether for rent, security or otherwise under the lease contract, or for any other reason the lessor has a right to withhold or take possession of the goods.
(2)
In pursuing its remedies under subsection (1) of this section, the lessor may stop delivery until:
(a)
Receipt of the goods by the lessee;
(b)
Acknowledgment to the lessee by any bailee of the goods, except a carrier, that the bailee holds the goods for the lessee; or
(c)
Such an acknowledgment to the lessee by a carrier via reshipment or as a warehouse.
(3)
(a)
To stop delivery, a lessor shall so notify as to enable the bailee by reasonable diligence to prevent delivery of the goods.
(b)
After notification, the bailee shall hold and deliver the goods according to the directions of the lessor, but the lessor is liable to the bailee for any ensuing charges or damages.
(c)
A carrier who has issued a nonnegotiable bill of lading is not obliged to obey a notification to stop received from a person other than the consignor.
L. 91: Entire article added, p. 314, § 1, effective 7/1/1992. L. 2006: (2) amended, p. 494, § 21, effective September 1.
2023 Colorado Revised Statutes › Title 4 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-13-306) › Article 2.5 - LEASES (§§ 4-2.5-101 — 4-2.5-533) › Part 5 - DEFAULT (§§ 4-2.5-501 — 4-2.5-533) › Subpart C - DEFAULT BY LESSEE (§§ 4-2.5-523 — 4-2.5-533) › Section 4-2.5-529 - Lessor's action for the rent

(1)
After default by the lessee under the lease contract of the type described in section
4-2.5-523 (1)
, or
4-2.5-523 (3)(a)
or, if agreed, after other default by the lessee, if the lessor complies with subsection (2) of this section, the lessor may recover from the lessee as damages:
(a)
For goods accepted by the lessee and not repossessed by or tendered to the lessor, and for conforming goods lost or damaged within a commercially reasonable time after risk of loss passes to the lessee (section
4-2.5-219
), (i) accrued and unpaid rent as of the date of entry of judgment in favor of the lessor, (ii) the present value as of the same date of the total rent for the then remaining lease term of the lease agreement, and (iii) any incidental damages allowed under section
4-2.5-530
, less expenses saved in consequence of the lessee's default; and
(b)
For goods identified to the lease contract if the lessor is unable after reasonable effort to dispose of them at a reasonable price or the circumstances reasonably indicate that effort will be unavailing, (i) accrued and unpaid rent as of the date of entry of judgment in favor of the lessor, (ii) the present value as of the same date of the rent for the then remaining lease term of the lease agreement, and (iii) any incidental damages allowed under section
4-2.5-530
, less expenses saved in consequence of the lessee's default.
(2)
Except as provided in subsection (3) of this section, the lessor shall hold for the lessee for the remaining lease term of the lease agreement any goods that have been identified to the lease contract and are in the lessor's control.
(3)
The lessor may dispose of the goods at any time before collection of the judgment for damages obtained pursuant to subsection (1) of this section. If the disposition is before the end of the remaining lease term of the lease agreement, the lessor's recovery against the lessee for damages is governed by section
4-2.5-527
or section
4-2.5-528
and the lessor will cause an appropriate credit to be provided against a judgment for damages to the extent that the amount of the judgment exceeds the recovery available pursuant to section
4-2.5-527
or
4-2.5-528
.
(4)
Payment of the judgment for damages obtained pursuant to subsection (1) of this section entitles the lessee to the use and possession of the goods not then disposed of for the remaining lease term of and in accordance with the lease agreement.
(5)
After a lessee has wrongfully rejected or revoked acceptance of goods, has failed to pay rent then due, or has repudiated (section
4-2.5-402
), a lessor who is held not entitled to rent under this section must nevertheless be awarded damages for non-acceptance under sections
4-2.5-527
and
4-2.5-528
.
L. 91: Entire article added, p. 316, § 1, effective 7/1/1992.
2023 Colorado Revised Statutes › Title 4 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-13-306) › Article 2.5 - LEASES (§§ 4-2.5-101 — 4-2.5-533) › Part 5 - DEFAULT (§§ 4-2.5-501 — 4-2.5-533) › Subpart C - DEFAULT BY LESSEE (§§ 4-2.5-523 — 4-2.5-533) › Section 4-2.5-530 - Lessor's incidental damages

Incidental damages to an aggrieved lessor include any commercially reasonable charges, expenses, or commissions incurred in stopping delivery, in the transportation, care, and custody of goods after the lessee's default, in connection with return or disposition of the goods, or otherwise resulting from the default.
L. 91: Entire article added, p. 318, § 1, effective 7/1/1992.
2023 Colorado Revised Statutes › Title 4 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-13-306) › Article 2.5 - LEASES (§§ 4-2.5-101 — 4-2.5-533) › Part 5 - DEFAULT (§§ 4-2.5-501 — 4-2.5-533) › Subpart C - DEFAULT BY LESSEE (§§ 4-2.5-523 — 4-2.5-533) › Section 4-2.5-531 - Standing to sue third parties for injury to goods

(1)
If a third party so deals with goods that have been identified to a lease contract as to cause actionable injury to a party to the lease contract (a) the lessor has a right of action against the third party, and (b) the lessee also has a right of action against the third party if the lessee:
(i)
Has a security interest in the goods;
(ii)
Has an insurable interest in the goods; or
(iii)
Bears the risk of loss under the lease contract or has since the injury assumed that risk as against the lessor and the goods have been converted or destroyed.
(2)
If at the time of the injury the party plaintiff did not bear the risk of loss as against the other party to the lease contract and there is no arrangement between them for disposition of the recovery, his or her suit or settlement, subject to his or her own interest, is as a fiduciary for the other party to the lease contract.
(3)
Either party with the consent of the other may sue for the benefit of whom it may concern.
L. 91: Entire article added, p. 318, § 1, effective 7/1/1992.
2023 Colorado Revised Statutes › Title 4 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-13-306) › Article 2.5 - LEASES (§§ 4-2.5-101 — 4-2.5-533) › Part 5 - DEFAULT (§§ 4-2.5-501 — 4-2.5-533) › Subpart C - DEFAULT BY LESSEE (§§ 4-2.5-523 — 4-2.5-533) › Section 4-2.5-532 - Lessor's rights to residual interest

In addition to any other recovery permitted by this article or other law, the lessor may recover from the lessee an amount that will fully compensate the lessor for any loss of or damage to the lessor's residual interest in the goods caused by the default of the lessee.
L. 91: Entire article added, p. 318, § 1, effective 7/1/1992.
2023 Colorado Revised Statutes › Title 4 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-13-306) › Article 2.5 - LEASES (§§ 4-2.5-101 — 4-2.5-533) › Part 5 - DEFAULT (§§ 4-2.5-501 — 4-2.5-533) › Subpart C - DEFAULT BY LESSEE (§§ 4-2.5-523 — 4-2.5-533) › Section 4-2.5-533 - Other measures of damages

Notwithstanding any other provision of this article, except as otherwise provided with respect to damages liquidated in the lease agreement (section
4-2.5-504
) or otherwise determined pursuant to agreement of the parties (sections
4-1-302
and
4-2.5-503
), a party to a lease contract, at his or her option, may recover for the other party's default, in addition to or in lieu of the damages expressly authorized by this article, such additional or different damages as may be necessary to put such party in as good a position as if the other party had performed in accordance with the lease contract, determined in any reasonable manner.
L. 91: Entire article added, p. 318, § 1, effective 7/1/1992. L. 2006: Entire section amended, p. 496, § 24, effective September 1.
Colorado legislative change.
This section was added by Colorado; it has no counterpart in the uniform act.
2023 Colorado Revised Statutes › Title 4 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-13-306) › Article 3 - NEGOTIABLE INSTRUMENTS (§§ 4-3-101 — 4-3-605) › Part 1 - GENERAL PROVISIONS AND DEFINITIONS (§§ 4-3-101 — 4-3-119) › Section 4-3-101 - Short title

This article may be cited as "Uniform Commercial Code -- Negotiable Instruments".
L. 94: Entire article R&RE, p. 839, § 1, effective 1/1/1995.
This section is similar to former § 4-3-101 as it existed prior to 1994.
2023 Colorado Revised Statutes › Title 4 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-13-306) › Article 3 - NEGOTIABLE INSTRUMENTS (§§ 4-3-101 — 4-3-605) › Part 1 - GENERAL PROVISIONS AND DEFINITIONS (§§ 4-3-101 — 4-3-119) › Section 4-3-102 - Subject matter

(a)
This article applies to negotiable instruments. It does not apply to money, to payment orders governed by article
4.5
of this title, or to securities governed by article
8
of this title.
(b)
If there is conflict between this article and article 4 or 9 of this title, articles 4 and 9 govern.
(c)
Regulations of the board of governors of the federal reserve system and operating circulars of the federal reserve banks supersede any inconsistent provision of this article to the extent of the inconsistency.
L. 94: Entire article R&RE, p. 839, § 1, effective 1/1/1995.
This section is similar to former § 4-3-103 as it existed prior to 1994.
2023 Colorado Revised Statutes › Title 4 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-13-306) › Article 3 - NEGOTIABLE INSTRUMENTS (§§ 4-3-101 — 4-3-605) › Part 1 - GENERAL PROVISIONS AND DEFINITIONS (§§ 4-3-101 — 4-3-119) › Section 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.
(b)
An unissued instrument, or an unissued incomplete instrument that is completed, is binding on the maker or drawer, but nonissuance is a defense. An instrument that is conditionally issued or is issued for a special purpose is binding on the maker or drawer, but failure of the condition or special purpose to be fulfilled is a defense.
(c)
"Issuer" applies to issued and unissued instruments and means a maker or drawer of an instrument.
Amended by 2023 Ch. 136,§ 21, eff. 8/7/2023.
L. 94: Entire article R&RE, p. 844, § 1, effective 1/1/1995.
This section is similar to former § 4-3-102 as it existed prior to 1994.
2023 Ch. 136, was passed without a safety clause. See Colo. Const. art. V, § 1(3).
2023 Colorado Revised Statutes › Title 4 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-13-306) › Article 3 - NEGOTIABLE INSTRUMENTS (§§ 4-3-101 — 4-3-605) › Part 1 - GENERAL PROVISIONS AND DEFINITIONS (§§ 4-3-101 — 4-3-119) › Section 4-3-106 - Unconditional promise or order

(a)
Except as provided in this section, for the purposes of section
4-3-104 (a)
, a promise or order is unconditional unless it states (i) an express condition to payment, (ii) that the promise or order is subject to or governed by another writing, or (iii) that rights or obligations with respect to the promise or order are stated in another writing. A reference to another writing does not of itself make the promise or order conditional.
(b)
A promise or order is not made conditional (i) by a reference to another writing for a statement of rights with respect to collateral, prepayment, or acceleration, or (ii) because payment is limited to resort to a particular fund or source.
(c)
If a promise or order requires, as a condition to payment, a countersignature by a person whose specimen signature appears on the promise or order, the condition does not make the promise or order conditional for the purposes of section
4-3-104 (a)
. If the person whose specimen signature appears on an instrument fails to countersign the instrument, the failure to countersign is a defense to the obligation of the issuer, but the failure does not prevent a transferee of the instrument from becoming a holder of the instrument.
(d)
If a promise or order at the time it is issued or first comes into possession of a holder contains a statement, required by applicable statutory or administrative law, to the effect that the rights of a holder or transferee are subject to claims or defenses that the issuer could assert against the original payee, the promise or order is not thereby made conditional for the purposes of section
4-3-104 (a)
; but if the promise or order is an instrument, there cannot be a holder in due course of the instrument.
L. 94: Entire article R&RE, p. 844, § 1, effective 1/1/1995.
This section is similar to former § 4-3-105 as it existed prior to 1994.
2023 Colorado Revised Statutes › Title 4 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-13-306) › Article 3 - NEGOTIABLE INSTRUMENTS (§§ 4-3-101 — 4-3-605) › Part 1 - GENERAL PROVISIONS AND DEFINITIONS (§§ 4-3-101 — 4-3-119) › Section 4-3-107 - Instrument payable in foreign money

Unless the instrument otherwise provides, an instrument that states the amount payable in foreign money may be paid in the foreign money or in an equivalent amount in dollars calculated by using the current bank-offered spot rate at the place of payment for the purchase of dollars on the day on which the instrument is paid.
L. 94: Entire article R&RE, p. 844, § 1, effective 1/1/1995.
This section is similar to former § 4-3-107 as it existed prior to 1994.
2023 Colorado Revised Statutes › Title 4 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-13-306) › Article 3 - NEGOTIABLE INSTRUMENTS (§§ 4-3-101 — 4-3-605) › Part 1 - GENERAL PROVISIONS AND DEFINITIONS (§§ 4-3-101 — 4-3-119) › Section 4-3-108 - Payable on demand or at definite time

(a)
A promise or order is "payable on demand" if it (i) states that it is payable on demand or at sight, or otherwise indicates that it is payable at the will of the holder, or (ii) does not state any time of payment.
(b)
A promise or order is "payable at a definite time" if it is payable on elapse of a definite period of time after sight or acceptance or at a fixed date or dates or at a time or times readily ascertainable at the time the promise or order is issued, subject to rights of (i) prepayment, (ii) acceleration, (iii) extension at the option of the holder, or (iv) extension to a further definite time at the option of the maker or acceptor or automatically upon or after a specified act or event.
(c)
If an instrument, payable at a fixed date, is also payable upon demand made before the fixed date, the instrument is payable on demand until the fixed date and, if demand for payment is not made before that date, becomes payable at a definite time on the fixed date.
L. 94: Entire article R&RE, p. 845, § 1, effective 1/1/1995.
This section is similar to former §§ 4-3-108 and 4-3-109 as they existed prior to 1994.
2023 Colorado Revised Statutes › Title 4 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-13-306) › Article 3 - NEGOTIABLE INSTRUMENTS (§§ 4-3-101 — 4-3-605) › Part 1 - GENERAL PROVISIONS AND DEFINITIONS (§§ 4-3-101 — 4-3-119) › Section 4-3-109 - Payable to bearer or to order

(a)
A promise or order is payable to bearer if it:
(1)
States that it is payable to bearer or to the order of bearer or otherwise indicates that the person in possession of the promise or order is entitled to payment;
(2)
Does not state a payee; or
(3)
States that it is payable to or to the order of cash or otherwise indicates that it is not payable to an identified person.
(b)
A promise or order that is not payable to bearer is payable to order if it is payable (i) to the order of an identified person or (ii) to an identified person or order. A promise or order that is payable to order is payable to the identified person.
(c)
An instrument payable to bearer may become payable to an identified person if it is specially indorsed pursuant to section
4-3-205 (a)
. An instrument payable to an identified person may become payable to bearer if it is indorsed in blank pursuant to section
4-3-205 (b)
.
L. 94: Entire article R&RE, p. 845, § 1, effective 1/1/1995.
This section is similar to former §§ 4-3-110 and 4-3-111 as they existed prior to 1994.
2023 Colorado Revised Statutes › Title 4 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-13-306) › Article 3 - NEGOTIABLE INSTRUMENTS (§§ 4-3-101 — 4-3-605) › Part 1 - GENERAL PROVISIONS AND DEFINITIONS (§§ 4-3-101 — 4-3-119) › Section 4-3-111 - Place of payment

Except as otherwise provided for items in article
4
of this title, an instrument is payable at the place of payment stated in the instrument. If no place of payment is stated, an instrument is payable at the address of the drawee or maker stated in the instrument. If no address is stated, the place of payment is the place of business of the drawee or maker. If a drawee or maker has more than one place of business, the place of payment is any place of business of the drawee or maker chosen by the person entitled to enforce the instrument. If the drawee or maker has no place of business, the place of payment is the residence of the drawee or maker.
L. 94: Entire article R&RE, p. 847, § 1, effective 1/1/1995.
2023 Colorado Revised Statutes › Title 4 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-13-306) › Article 3 - NEGOTIABLE INSTRUMENTS (§§ 4-3-101 — 4-3-605) › Part 1 - GENERAL PROVISIONS AND DEFINITIONS (§§ 4-3-101 — 4-3-119) › Section 4-3-112 - Interest

(a)
Unless otherwise provided in the instrument, (i) an instrument is not payable with interest, and (ii) interest on an interest-bearing instrument is payable from the date of the instrument.
(b)
Interest may be stated in an instrument as a fixed or variable amount of money or it may be expressed as a fixed or variable rate or rates. The amount or rate of interest may be stated or described in the instrument in any manner and may require reference to information not contained in the instrument. If an instrument provides for interest, but the amount of interest payable cannot be ascertained from the description, interest is payable at the judgment rate in effect at the place of payment of the instrument and at the time interest first accrues.
L. 94: Entire article R&RE, p. 847, § 1, effective 1/1/1995.
2023 Colorado Revised Statutes › Title 4 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-13-306) › Article 3 - NEGOTIABLE INSTRUMENTS (§§ 4-3-101 — 4-3-605) › Part 1 - GENERAL PROVISIONS AND DEFINITIONS (§§ 4-3-101 — 4-3-119) › Section 4-3-113 - Date of instrument

(a)
An instrument may be antedated or postdated. The date stated determines the time of payment if the instrument is payable at a fixed period after date. Except as provided in section
4-4-401 (c)
, an instrument payable on demand is not payable before the date of the instrument.
(b)
If an instrument is undated, its date is the date of its issue or, in the case of an unissued instrument, the date it first comes into possession of a holder.
L. 94: Entire article R&RE, p. 847, § 1, effective 1/1/1995.
This section is similar to former § 4-3-114 as it existed prior to 1994.
2023 Colorado Revised Statutes › Title 4 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-13-306) › Article 3 - NEGOTIABLE INSTRUMENTS (§§ 4-3-101 — 4-3-605) › Part 1 - GENERAL PROVISIONS AND DEFINITIONS (§§ 4-3-101 — 4-3-119) › Section 4-3-114 - Contradictory terms of instrument

If an instrument contains contradictory terms, type-written terms prevail over printed terms, handwritten terms prevail over both, and words prevail over numbers.
L. 94: Entire article R&RE, p. 847, § 1, effective 1/1/1995.
This section is similar to former § 4-3-118 as it existed prior to 1994.
2023 Colorado Revised Statutes › Title 4 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-13-306) › Article 3 - NEGOTIABLE INSTRUMENTS (§§ 4-3-101 — 4-3-605) › Part 1 - GENERAL PROVISIONS AND DEFINITIONS (§§ 4-3-101 — 4-3-119) › Section 4-3-115 - Incomplete instrument

(a)
"Incomplete instrument" means a signed writing, whether or not issued by the signer, the contents of which show at the time of signing that it is incomplete but that the signer intended it to be completed by the addition of words or numbers.
(b)
Subject to subsection (c) of this section, if an incomplete instrument is an instrument under section
4-3-104
, it may be enforced according to its terms if it is not completed, or according to its terms as augmented by completion. If an incomplete instrument is not an instrument under section
4-3-104
, but, after completion, the requirements of section
4-3-104
are met, the instrument may be enforced according to its terms as augmented by completion.
(c)
If words or numbers are added to an incomplete instrument without authority of the signer, there is an alteration of the incomplete instrument under section
4-3-407
.
(d)
The burden of establishing that words or numbers were added to an incomplete instrument without authority of the signer is on the person asserting the lack of authority.
L. 94: Entire article R&RE, p. 847, § 1, effective 1/1/1995.
This section is similar to former § 4-3-115 as it existed prior to 1994.