Colorado § 38-24-103 - Security interest invalid - when.
Full text of Colorado Colorado Revised Statutes § 38-24-103 — Security interest invalid - when., with citation guidance and answers to common questions.
§ 38-24-103. Security interest invalid - when.
No chattel mortgage or security interest shall be valid as against any person, firm, or corporation entitled to a lien under the provisions of this article; but no mortgage, lien, or other encumbrance existing and recorded as provided by law at the time of the inception of the lien provided for in this article shall be affected thereby.
Source: L. 29: p. 436, § 3. CSA: C. 101, § 53. CRS 53: § 86-5-3. C.R.S. 1963: § 86-5-3.
ANNOTATION
Law reviews. For article, "Mechanics' Liens Relative to Oil and Gas Operations — Part II", see 34 Dicta 373 (1957). For article, "Oil and Gas Financing Under the Uniform Commercial Code as Enacted in Colorado", see 43 Den. L. J. 129 (1966).
Purpose of section. This section is intended to invalidate only those chattel mortgages which were in existence, but which were unrecorded at the time of the inception of the mechanic's lien, and where a purchase money security interest on personalty comes into existence after the inception of the mechanic's lien, the recording or lack of recording of the purchase money security document is immaterial as to a mechanic's lien claimant whose rights were created and defined at a previous time. Nation v. Chambers, 29 Colo. App. 413, 486 P.2d 460 (1971), aff'd, 178 Colo. 124, 497 P.2d 5 (1972).
This section and § 38-24-101 must be construed together. This section must be read and construed together with the provisions of § 38-24-101, and since, under § 38-24-101 a lien claimant is not entitled to a prior lien on property which is the subject of a purchase money security interest, a chattel mortgage on such property is not rendered invalid by the operation of this section. Chambers v. Nation, 178 Colo. 124, 497 P.2d 5 (1972).
Frequently Asked Questions About Colorado § 38-24-103
What does Colorado Revised Statutes § 38-24-103 cover?
Section 38-24-103 ("Security interest invalid - when.") is part of the Colorado Revised Statutes, the codified statutory law of Colorado. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Colorado § 38-24-103?
A common citation format is "Colorado Revised Statutes § 38-24-103" (Colorado). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Colorado law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Colorado official source linked on this page or consult a licensed Colorado attorney.
How does Colorado § 38-24-103 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Colorado can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Colorado.