Colorado § 42-6-129 - Second or other junior mortgages.

§ 42-6-129. Second or other junior mortgages.

(1) On and after July 1, 1977, a person who takes a junior mortgage on a motor or off-highway vehicle for which a Colorado certificate of title has been issued or filed may file the mortgage for public record and have the existence of the mortgage noted or filed on the certificate of title with like effect as in other cases, as required by this section.

(2) The junior mortgagee or the holder of the mortgage shall file the mortgage as required by section 42-6-121 with the authorized agent of the county where the mortgagor of the motor or off-highway vehicle resides or where the vehicle is located with a written request to have the existence of the mortgage noted or filed on the certificate of title records of the authorized agent pertaining to the vehicle covered by the junior mortgage. Upon the filing of the mortgage, the authorized agent shall note in the record of the vehicle the day and hour when the mortgage was received by the agent, shall make and deliver a receipt for the mortgage to the person filing the mortgage, and shall file the mortgage as required under section 42-6-122. If there is more than one mortgage or lien on the motor or off-highway vehicle, the department's authorized agent may electronically transmit the mortgage or lien to the first mortgage or lienholder and notify the first mortgage or lienholder of any additional mortgages or liens.

(3) The director's authorized agent, by registered mail, return receipt requested, shall make a written demand on the holder of the certificate of title, addressed to such person at the person's address as the same may appear in said written request, that such certificate be delivered to the authorized agent for the purpose of having noted on the certificate such second or junior mortgage. Within fifteen days after the receipt of such demand, the person holding such certificate shall either mail or deliver the same to such director's authorized agent or, if the person no longer has possession of the certificate, shall so notify the agent and, if the person knows, shall likewise inform the agent where and from whom such certificate may be procured. Upon the receipt of such certificate, the director's authorized agent shall complete an application for a new title and record the number thereof on the mortgage, as in the case of a first mortgage, and shall, as in the case of a first mortgage, issue and file a new certificate of title on which record the existence of all mortgages on the motor vehicle, including such second or junior mortgage, have been noted.

(4) If a person lawfully in possession of a certificate of title to a motor or off-highway vehicle, upon whom demand is made for the delivery to the authorized agent, fails to deliver or mail the certificate of title to the authorized agent, the person is liable to the holder of the junior mortgage for all damage sustained by reason of the omission.

Source: L. 94: Entire title amended with relocations, p. 2462, § 1, effective January 1, 1995. L. 2000: (1), (2), and (3) amended, p. 1667, § 22, effective July 1, 2001. L. 2013: (1), (2), and (4) amended, (SB 13-280), ch. 407, pp. 2391, 2398, §§ 25, 44, effective June 5; (2) amended, (HB 13-1289), ch. 380, p. 2226, § 7, effective June 5.

Editor's note: (1) This section is similar to former § 42-6-127.5 as it existed prior to 1994, and the former § 42-6-129 was relocated to § 42-6-131.

(2) Amendments to subsection (2) by sections 25 and 44 of Senate Bill 13-280 were harmonized.

Cross references: For the legislative declaration in the 2013 act amending subsection (2), see section 1 of chapter 380, Session Laws of Colorado 2013.