Colorado § 5-3-302 - Limitation on default charges.
Full text of Colorado Colorado Revised Statutes § 5-3-302 — Limitation on default charges., with citation guidance and answers to common questions.
§ 5-3-302. Limitation on default charges.
Except for reasonable expenses incurred in realizing on a security interest, the agreement with respect to a consumer credit transaction may not provide for charges as a result of default by the consumer other than those authorized by this code. A provision in violation of this section is unenforceable.
Source: L. 2000: Entire article R&RE, p. 1221, § 1, effective July 1.
Editor's note: This section is similar to former §§ 5-2-414 and 5-3-405, as they existed prior to 2000.
ANNOTATION
Because this section provides that only those charges allowable elsewhere under the UCCC plus reasonable expenses in realizing a security interest are permissible as default charges, higher default interest on a note is unenforceable. First Nat. Bank v. Union Tavern Corp., 794 P.2d 261 (Colo. App. 1990) (decided prior to 2000 repeal and reenactment).
Frequently Asked Questions About Colorado § 5-3-302
What does Colorado Revised Statutes § 5-3-302 cover?
Section 5-3-302 ("Limitation on default charges.") 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 § 5-3-302?
A common citation format is "Colorado Revised Statutes § 5-3-302" (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 § 5-3-302 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.