Colorado § 4-9-108 - Sufficiency of description.

§ 4-9-108. Sufficiency of description.

(a) Except as otherwise provided in subsections (c), (d), (e), and (f) of this section, a description of personal or real property is sufficient, whether or not it is specific, if it reasonably identifies what is described.

(b) Except as otherwise provided in subsection (d) of this section, a description of collateral reasonably identifies the collateral if it identifies the collateral by:

(1) Specific listing;

(2) Category, including a category determined by use of a numerical or other code included in forms and formats adopted from time to time by the secretary of state;

(3) Except as otherwise provided in subsection (e) of this section, a type of collateral defined in this title;

(4) Quantity;

(5) Computational or allocational formula or procedure; or

(6) Except as otherwise provided in subsection (c) of this section, any other method, if the identity of the collateral is objectively determinable.

(c) A description of collateral as "all the debtor's assets" or "all the debtor's personal property" or using words of similar import does not reasonably identify the collateral.

(d) Except as otherwise provided in subsection (e) of this section, a description of a security entitlement, securities account, or commodity account is sufficient if it describes:

(1) The collateral by those terms or as investment property; or

(2) The underlying financial asset or commodity contract.

(e) A description only by type of collateral defined in this title is an insufficient description of:

(1) A commercial tort claim;

(2) In a consumer transaction, consumer goods, a security entitlement, a securities account, or a commodity account; or

(3) A deposit account.

(f) Any description in the security agreement of personal property that includes consumer goods is sufficient as to the consumer goods only if it specifically identifies and itemizes such consumer goods.

Source: L. 2001: Entire article R&RE, p. 1330, § 1, effective July 1.

Editor's note: (1) The provisions of this section are similar to former §§ 4-9-110 and 4- 9-115 (3) as they existed prior to 2001.

(2) Colorado legislative change: Colorado added the phrase "including a category determined by use of a numerical or other code included in forms and formats adopted from time to time by the secretary of state;" in subsection (b)(2), added a new paragraph (3) to subsection (e), and added a new subsection (f).

ANNOTATION

Law reviews. For article, "The Revolution in Consumer Credit Legislation", see 45 Den. L.J. 679 (1968). For comment on In re Lehner appearing below, see 48 Den. L.J. 146 (1971). For article, "Secured Transactions — Part I: Attachment, Perfection and Priorities", see 11 Colo. Law. 2939 (1982).

Annotator's note. Since § 4-9-108 is similar to § 4-9-110 as it existed prior to the 2001 repeal and reenactment of this article, relevant cases construing that provision have been included in the annotations to this section.

This section is intended to demand specificity only in the security agreement. In re Lehner, 303 F. Supp. 317 (D. Colo. 1969), aff'd per curiam and reh'g denied, 427 F.2d 357 (10th Cir. 1970).

The sufficiency of the description in the financing statement is to be determined by § 4-9-402 (1). In re Lehner, 303 F. Supp. 317 (D. Colo. 1969), aff'd per curiam and reh'g denied, 427 F.2d 357 (10th Cir. 1970).

Use of terms defined in § 4-9-102 sufficient under subsection (b)(3) of this section to describe items of collateral. In re 3PL4PL, 619 B.R. 441 (Bankr. D. Colo. 2020).

The use of the term "consumer goods" fails to satisfy this section. In re Lehner, 303 F. Supp. 317, (D. Colo. 1969), aff'd per curiam and reh'g denied, 427 F.2d 357 (10th Cir. 1970).

The combination of defined collateral terms used as descriptions, preceding the grant of a lien in all personal property now owned or thereafter acquired, is sufficient to create a blanket lien notwithstanding subsection (c). In re 3PL4PL, 619 B.R. 441 (Bankr. D. Colo. 2020).

Collateral description in lease for use of landlord's building created an enforceable security interest in debtor's personal property where the lease described the collateral as all of the debtor's personal property and identified the location of the property. The collateral description in debtor's lease reasonably identified the secured collateral as all of the debtor's property at the jewelry store, including the scrap gold, merchandise, and business equipment and fixtures sold at a liquidation sale. This description is reasonably identified and objectively determinable under subsection (b)(6). In re Estate of Wheeler, 2013 COA 101, 410 P.3d 483.

Applied in Young v. Golden State Bank, 39 Colo. App. 45, 560 P.2d 855 (1977).