Colorado § 4-9-617 - Rights of transferee of collateral.
Full text of Colorado Colorado Revised Statutes § 4-9-617 — Rights of transferee of collateral., with citation guidance and answers to common questions.
§ 4-9-617. Rights of transferee of collateral.
(a) A secured party's disposition of collateral after default:
(1) Transfers to a transferee for value all of the debtor's rights in the collateral;
(2) Discharges the security interest under which the disposition is made; and
(3) Discharges any subordinate security interest or other subordinate lien.
(b) A transferee that acts in good faith takes free of the rights and interests described in subsection (a) of this section, even if the secured party fails to comply with this article or the requirements of any judicial proceeding.
(c) If a transferee does not take free of the rights and interests described in subsection (a) of this section, the transferee takes the collateral subject to:
(1) The debtor's rights in the collateral;
(2) The security interest or agricultural lien under which the disposition is made; and
(3) Any other security interest or other lien.
Source: L. 2001: Entire article R&RE, p. 1412, § 1, effective July 1.
Editor's note: This section is similar to former § 4-9-504 (4) as it existed prior to 2001.
ANNOTATION
Annotator's note. Since § 4-9-617 is similar to § 4-9-504 as it existed prior to the 2001 repeal and reenactment of this article, a relevant case construing that provision has been included in the annotations to this section.
Under plain language of this section, sale of wraparound promissory note transferred all debtor's rights to purchaser at foreclosure sale and discharged creditor's security interest therein; accordingly, purchaser took free of restrictions contained in security agreement. Western Group Nurseries v. Pomeranz, 867 P.2d 12 (Colo. App. 1993).
Source: official Colorado text · Last verified 2026-08-27
Frequently Asked Questions About Colorado § 4-9-617
What does Colorado Revised Statutes § 4-9-617 cover?
Section 4-9-617 ("Rights of transferee of collateral.") 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 § 4-9-617?
A common citation format is "Colorado Revised Statutes § 4-9-617" (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 § 4-9-617 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.