Colorado § 42-6-121 - Filing of mortgage - rules.

§ 42-6-121. Filing of mortgage - rules.

(1) The holder of a chattel mortgage on a motor or off-highway vehicle desiring to secure the rights provided for in this part 1 and to have the existence of the mortgage and the fact of the filing of the mortgage noted in the filing of the certificate of title to the encumbered vehicle must present the signed original or signed duplicate of the mortgage or copy of the mortgage and the certificate of title or application for certificate of title to the vehicle encumbered to the authorized agent of the director in the county or city and county in which the mortgagor of the vehicle resides or where the vehicle is located. The holder may file either with paper documents or electronically. The mortgage or refinancing of a loan secured by a mortgage must state the name and address of the debtor; the name and address of the mortgagee or name of the mortgagee's assignee; the make, vehicle identification number, and year of manufacture of the mortgaged vehicle; and the date and amount of the loan secured by the mortgage. An owner of a motor or off-highway vehicle applying for a certificate of title under section 42-6-115, 42-6-116, or 42-6-119 is deemed to have filed under this section on behalf of the mortgage or lienholder.

(2) (a) Upon the receipt of the electronic, original, or duplicate mortgage and certificate of title or application for certificate of title, the authorized agent, if satisfied that the vehicle described in the mortgage is the same as that described in the certificate of title or filed title, shall file within the director's authorized agent's motor and off-highway vehicle database:

(I) Notice of the mortgage or lien, in which appears the day on which the mortgage was received for filing;

(II) The name and address of the mortgagee named and the name and address of the holder of the mortgage, if the holder is not the named mortgagee;

(III) The amount secured by the vehicle;

(IV) The date of the mortgage;

(V) The day and year on which the mortgage was filed; and

(VI) Any other information regarding the filing of the mortgage in the office of the director's authorized agent as may be required by the director by rule.

(b) The director's authorized agent shall electronically transmit, when the director's authorized agent uses an electronic filing system, the certificate of title, application for certificate of title, and mortgage information to the database of the director for maintenance of a central registry of motor and off-highway vehicle title information pursuant to section 42-6-147.

(3) A mortgage is deemed to be a signed original or a signed duplicate if the signature appearing on a certificate of title or application for certificate of title was affixed personally by the mortgagor or the mortgagor's attorney-in-fact, in ink, in carbon, or by any other means.

(4) For purposes of liens created pursuant to section 14-10-122 (1.5), C.R.S., the lien shall contain the information set forth in this section as well as any additional information required in section 14-10-122 (1.5)(f), C.R.S.

(5) The lien or mortgage shall be perfected pursuant to section 42-6-120 on the date all documents required by subsection (1) of this section, including, without limitation, the signed original or signed duplicate of the mortgage or a copy containing the information required by subsection (1) of this section, are received by the authorized agent and payment is tendered on the fee imposed by section 42-6-137 (2).

Source: L. 94: Entire title amended with relocations, p. 2458, § 1, effective January 1, 1995. L. 97: Entire section amended, p. 1310, § 46, effective July 1. L. 2000: Entire section amended, p. 1663, § 15, effective July 1, 2001. L. 2006: Entire section amended, p. 640, § 2, effective July 1. L. 2009: (1) amended, (SB 09-292), ch. 369, p. 1984, § 127, effective August 5; (1) amended, (HB 09-1089), ch. 196, p. 880, § 1, effective October 1. L. 2013: (1) and (2) amended, (SB 13-280), ch. 407, p. 2386, § 17, effective June 5. L. 2022: (1), IP(2)(a), and (2)(a)(V) amended, (HB 22-1388), ch. 475, p. 3464, § 11, effective January 1, 2023.

Editor's note: (1) This section is similar to former § 42-6-120 as it existed prior to 1994, and the former § 42-6-121 was relocated to § 42-6-122.

(2) Amendments to subsection (1) by Senate Bill 09-292 and House Bill 09-1089 were harmonized.

Cross references: For the legislative declaration contained in the 1997 act amending this section, see section 1 of chapter 236, Session Laws of Colorado 1997.

ANNOTATION

Annotator's note. Since § 42-6-121 is similar to § 42-6-120 as it existed prior to the 1994 amending of title 42 as enacted by SB 94-1, relevant cases construing that provision have been included in the annotations to this section.

The purpose of the title act was to provide a simple and effective means of ascertaining the title to and interests in motor vehicles and that means is an examination of the title certificate itself. The provision in the statute requiring the notation on the title certificate of the filed chattel mortgage was designed to make that certificate conclusive as to the rights of the parties with respect to the matter of notice of prior encumbrances. It is not the province of this court to give to the statute a narrow interpretation out of harmony with the designed purpose and intent of the general assembly. Loye v. Denver United States Nat'l Bank, 341 F.2d 402 (10th Cir. 1965).

The certificate of title act creates a system of notice filing in which the certificate merely indicates who may have a security interest. Further inquiry from the parties is necessary to determine the complete state of affairs. Yeager Trucking v. Circle Leasing, 29 B.R. 131 (Bankr. D. Colo. 1983).

This section is intended to supersede the use of local files and records in providing notice of encumbrances upon motor vehicles. Loye v. Denver United States Nat'l Bank, 341 F.2d 402 (10th Cir. 1965).

The notation on a title certificate of the existence of an encumbrance is sufficient notice to subsequent creditors. Loye v. Denver United States Nat'l Bank, 341 F.2d 402 (10th Cir. 1965).

Notation of creditor as "owner" suffices. A notation of the creditor as "owner" on the certificate of title constitutes substantial compliance with this section. Yeager Trucking v. Circle Leasing, 29 B.R. 131 (Bankr. D. Colo. 1983).

Superiority of recorded lien. A creditor cannot obtain a judicial lien superior to a transferee's interest, once the requirements for the recording of the lien on a motor vehicle set out in § 42-6-119 and this section are fulfilled. GMAC v. Martella, 22 B.R. 649 (Bankr. D. Colo. 1982).

Mortgage cannot attach more value than amount noted on certificate. Allowing a mortgage to attach having more value than the amount noted on the certificate of title would negate the purpose of § 42-6-119 and this section, which is to make the certificate conclusive as to the rights of the parties with respect to notice of prior encumbrances. In re Grizaffi, 23 B.R. 137 (Bankr. D. Colo. 1982).

The recording of a chattel mortgage on a motor vehicle in the wrong county does not render the mortgage lien void so as to be vulnerable to attack by a trustee in bankruptcy. Loye v. Denver United States Nat'l Bank, 341 F.2d 402 (10th Cir. 1965).

Application of uniform commercial code where automobiles held as inventory. Where automobiles were held for sale as inventory, this section and § 42-6-119 did not apply to the security interest of the bank making a loan to the purchaser, and the provisions of article 9 of title 4 did apply. Guy Martin Buick, Inc. v. Colo. Springs Nat'l Bank, 32 Colo. App. 235, 511 P.2d 912 (1973), aff'd, 184 Colo. 166, 519 P.2d 354 (1974).

The Colorado Certificate of Title Act (CCTA) does not supersede § 4-9-317 (e) of the Uniform Commercial Code because subsection (e) does not govern the manner or timing of the perfection of liens. It governs only the priority of a lien and is not inconsistent with the CCTA. In re Roser, 613 F.3d 1240 (10th Cir. 2010).