Colorado § 5-3-204 - Restrictions on interest in land as security.
Full text of Colorado Colorado Revised Statutes § 5-3-204 — Restrictions on interest in land as security., with citation guidance and answers to common questions.
§ 5-3-204. Restrictions on interest in land as security.
(1) With respect to a consumer loan in which the amount financed is three thousand dollars or less, a lender may not contract for an interest in land as security. A security interest taken in violation of this section is void.
(2) For the purposes of this section, on revolving credit accounts, the amount financed shall be determined by the limit in the amount of credit made available to or for the account of the consumer if that limit is established by an express written agreement by the lender and if the lender does not retain the right to unilaterally reduce that credit limit, except in the event of default.
Source: L. 2000: Entire article R&RE, p. 1219, § 1, effective July 1.
Editor's note: This section is similar to former § 5-3-510, as it existed prior to 2000.
ANNOTATION
Law reviews. For article, "An Overview of Home Equity as Security for a Line of Credit", see 14 Colo. Law. 226 (1985).
Source: official Colorado text · Last verified 2026-08-27
Frequently Asked Questions About Colorado § 5-3-204
What does Colorado Revised Statutes § 5-3-204 cover?
Section 5-3-204 ("Restrictions on interest in land as security.") 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 § 5-3-204?
A common citation format is "Colorado Revised Statutes § 5-3-204" (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 § 5-3-204 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.