Colorado § 28-3-1405 - Installment contracts - purchase of property.

§ 28-3-1405. Installment contracts - purchase of property.

(1) (a) Except as otherwise provided in paragraph (b) of this subsection (1), a creditor who has received a deposit or installment of the purchase price under an installment contract for the purchase of real or personal property from a person who, after the date of the payment of such deposit or installment, is called to state military service or state defense force active duty as described in section 28-3-1402, may not:

(I) Exercise any right or option under said contract to rescind or terminate the contract; or

(II) Resume possession of the property.

(b) A creditor described in paragraph (a) of this subsection (1) may rescind or terminate the installment contract or resume possession of the property for nonpayment if:

(I) The person, within thirty days after being called to said service or duty, has not provided the creditor with written notice of the service or duty;

(II) A court of competent jurisdiction has affirmatively authorized such rescission, termination, or possession; or

(III) The nonpayment of any installment under the installment contract or any other breach of the terms thereof did not occur during the period of the service or duty or for thirty days thereafter.

(2) (a) Upon hearing said action, a court may order the repayment of prior installments or deposits or any part thereof as a condition of terminating the contract and resuming possession of the property.

(b) Notwithstanding the provisions of paragraph (a) of this subsection (2), a court may, on its own motion, stay the proceedings for the duration of the period of service or duty and for thirty days thereafter or otherwise dispose of the case as may be equitable to conserve the interests of all parties. The court shall stay the proceedings upon the application of a person, or an agent of the person, engaged in state military service or state defense force active duty unless, in the opinion of the court, the ability of the person to comply with the terms of the obligation is not materially affected.

Source: L. 2002: Entire part added, p. 691, § 1, effective July 1. L. 2003: IP(1)(a) and (2)(b) amended, p. 2000, § 59, effective May 22.