Colorado § 4-9-515 - Duration and effectiveness of financing statement - effect of lapsed financing statement.

§ 4-9-515. Duration and effectiveness of financing statement - effect of lapsed financing statement.

(a) Except as otherwise provided in subsections (b), (e), (f), and (g) of this section and section 4-9-528, a filed financing statement is effective for a period of five years after the date of filing.

(b) Except as otherwise provided in subsections (e), (f), and (g) of this section, an initial financing statement filed in connection with a manufactured-home transaction is effective for a period of thirty years after the date of filing if it indicates that it is filed in connection with a manufactured-home transaction.

(c) The effectiveness of a filed financing statement lapses on the expiration of the period of its effectiveness unless before the lapse a continuation statement is filed pursuant to subsection (d) of this section. Upon lapse, a financing statement ceases to be effective and any security interest or agricultural lien that was perfected by the financing statement becomes unperfected, unless the security interest is perfected otherwise. If the security interest or agricultural lien becomes unperfected upon lapse, it is deemed never to have been perfected as against a purchaser of the collateral for value.

(d) A continuation statement may be filed only within six months before the expiration of the five-year period specified in subsection (a) of this section, the thirty-year period specified in subsection (b) of this section, or the five-year period specified in section 4-9-528 (a)(1), whichever is applicable.

(e) Except as otherwise provided in section 4-9-510, upon timely filing of a continuation statement, the effectiveness of the initial financing statement continues for a period of five years commencing on the day on which the financing statement would have become ineffective in the absence of the filing. Upon the expiration of the five-year period, the financing statement lapses in the same manner as provided in subsection (c) of this section, unless, before the lapse, another continuation statement is filed pursuant to subsection (d) of this section. Succeeding continuation statements may be filed in the same manner to continue the effectiveness of the initial financing statement.

(f) If a debtor is a transmitting utility and a filed initial financing statement so indicates, the financing statement is effective until a termination statement is filed.

(g) A record of a mortgage that is effective as a financing statement filed as a fixture filing under section 4-9-502 (c) remains effective as a financing statement filed as a fixture filing until the mortgage is released or satisfied of record or its effectiveness otherwise terminates as to the real property.

Source: L. 2001: Entire article R&RE, p. 1386, § 1, effective July 1. L. 2012: (f) amended, (HB 12-1262), ch. 170, p. 602, § 12, effective July 1, 2013.

Editor's note: (1) This section is similar to former § 4-9-403 as it existed prior to 2001.

(2) Colorado legislative change: Colorado added the reference to section 4-9-528 in subsection (a) and the phrase "or the five-year period specified in section 4-9-528 (a)(1)" in subsection (d).

ANNOTATION

Law reviews. For article, "Commercial Law", see 56 Den. L.J. 409 (1979). For article, "Colorado Secretary of State Uniform Commercial Code Procedures", see 11 Colo. Law. 1542 (1982). For article, "Secured Transactions — Part I: Attachment, Perfection and Priorities", see 11 Colo. Law. 2939 (1982).

Annotator's note. Since § 4-9-515 is similar to § 4-9-403 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.

For legislative intent, see In re Vodco Volume Dev. Co., 567 F.2d 967 (10th Cir. 1977) (decided prior to 1977 amendment).

This section may not be employed to destroy prior perfected security interests in favor of a subsequent holder of a security interest. W. Nat'l Bank v. ABC Drilling Co., 42 Colo. App. 407, 599 P.2d 942 (1979).

For effect of filing continuation statement after properly filed financing statement had lapsed, prior to 1977 amendment, see In re Vodco Volume Dev. Co., 567 F.2d 967 (10th Cir. 1977) (decided prior to 1977 amendment).

Failure to file a continuation statement within 60 days of the termination of a debtor's bankruptcy proceeding does not cause creditor's security interest to lapse when creditor has filed a continuation statement during the bankruptcy proceedings. John Deere Co. v. Alamosa Nat. Bank, 786 P.2d 505 (Colo. App. 1989).