Colorado § 4-8-112 - Creditor's legal process.

§ 4-8-112. Creditor's legal process.

(a) The interest of a debtor in a certificated security may be reached by a creditor only by actual seizure of the security certificate by the officer making the attachment or levy, except as otherwise provided in subsection (d) of this section. However, a certificated security for which the certificate has been surrendered to the issuer may be reached by a creditor by legal process upon the issuer.

(b) The interest of a debtor in an uncertificated security may be reached by a creditor only by legal process upon the issuer at its chief executive office in the United States, except as otherwise provided in subsection (d) of this section.

(c) The interest of a debtor in a security entitlement may be reached by a creditor only by legal process upon the securities intermediary with whom the debtor's securities account is maintained, except as otherwise provided in subsection (d) of this section.

(d) The interest of a debtor in a certificated security for which the certificate is in the possession of a secured party, or in an uncertificated security registered in the name of a secured party, or a security entitlement maintained in the name of a secured party, may be reached by a creditor by legal process upon the secured party.

(e) A creditor whose debtor is the owner of a certificated security, uncertificated security, or security entitlement is entitled to aid from a court of competent jurisdiction, by injunction or otherwise, in reaching the certificated security, uncertificated security, or security entitlement or in satisfying the claim by means allowed at law or in equity in regard to property that cannot readily be reached by other legal process.

Source: L. 96: Entire article R&RE, p. 214, § 2, effective July 1.

Editor's note: This section is similar to former § 4-8-317 as it existed prior to 1996.

ANNOTATION

I. Attachment or Levy.

II. Aid of Courts.

I. ATTACHMENT OR LEVY.

These cases decided under former provisions which provided for a levy on corporate shares. Conway v. John, 14 Colo. 30, 23 P. 170 (1890); Pullen v. Headberg, 53 Colo. 502, 127 P. 954 (1912); Ellis v. Gibbons, 26 Colo. App. 454, 145 P. 285 (1914); Carlton v. Camfield, 64 Colo. 373, 171 P. 1140 (1918); Snider v. Bourquin, 68 Colo. 207, 188 P. 727 (1920); Hollingsworth v. Multa Trina Ditch Co., 51 F.2d 649 (10th Cir. 1931) (decided under repealed C. L. §§ 5905 through 5910, and laws antecedent thereto).

C.R.C.P. 102, C.R.C.P. 103, and this section may be harmonized so that stock certificates may be reached by a creditor either by actual physical seizure, by a writ of attachment, if actually seized, or by serving the person who possesses the certificate with a writ of garnishment. Moreland v. Alpert, 124 P.3d 896 (Colo. App. 2005).

II. AID OF COURTS.

Section subject to civil rule on injunctions. This section, though adopted as an aid to creditors in reaching corporate stock owned by a debtor and authorizing the courts to aid in securing such assets by injunction or otherwise, is subject to Rule 65, C.R.C.P., there being no special requirements or procedure provided therein by which an injunction or other relief shall be granted. Stull v. District Court, 135 Colo. 86, 308 P.2d 1006 (1957) (decided under repealed § 31-9-13, CRS 53, uniform stock transfer act).