Colorado § 4-9-205 - Use or disposition of collateral permissible.
Full text of Colorado Colorado Revised Statutes § 4-9-205 — Use or disposition of collateral permissible., with citation guidance and answers to common questions.
§ 4-9-205. Use or disposition of collateral permissible.
(a) A security interest is not invalid or fraudulent against creditors solely because:
(1) The debtor has the right or ability to:
(A) Use, commingle, or dispose of all or part of the collateral, including returned or repossessed goods;
(B) Collect, compromise, enforce, or otherwise deal with collateral;
(C) Accept the return of collateral or make repossessions; or
(D) Use, commingle, or dispose of proceeds; or
(2) The secured party fails to require the debtor to account for proceeds or replace collateral.
(b) This section does not relax the requirements of possession if attachment, perfection, or enforcement of a security interest depends upon possession of the collateral by the secured party.
Source: L. 2001: Entire article R&RE, p. 1336, § 1, effective July 1.
Editor's note: This section is similar to former § 4-9-205 as it existed prior to 2001.
Source: official Colorado text · Last verified 2026-08-27
Frequently Asked Questions About Colorado § 4-9-205
What does Colorado Revised Statutes § 4-9-205 cover?
Section 4-9-205 ("Use or disposition of collateral permissible.") 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 § 4-9-205?
A common citation format is "Colorado Revised Statutes § 4-9-205" (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 § 4-9-205 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.