BY REPRESENTATIVES Nichol, Mace, and Smith;
also SENATORS B. Alexander and Bishop.
CONCERNING CIVIL PENALTIES FOR VIOLATIONS OF THE
DISCLOSURE REQUIREMENTS FOR MAKING LOANS SECURED BY A MORTGAGE
OR DEED OF TRUST.
Be it enacted by the General Assembly of the State
of Colorado:
SECTION 1. 3840104,
Colorado Revised Statutes, is amended to read:
3840104. Cause of action
attorney fees. (1) If
any applicant or debtor is aggrieved by a violation of section
3840102 or 3840103, which violation is
not remedied in a reasonable, timely, and good faith manner by
the party obligated to do so, and after a good faith effort to
resolve the dispute is made by the debtor or borrower, such debtor
or borrower may bring an action in a court of competent jurisdiction
for any such violation, and, if the court finds that actual damages
have occurred, the court shall award in addition to actual damages
the amount of five
ONE THOUSAND hundred
dollars, together with and costs and reasonable attorney fees.
(2) No transferee from a lender shall
be liable for any act or omission of the lender under section
3840102. No transferee of servicing or collection
rights shall be liable for any act or omission of the transferor
of those rights under section 3840103.
SECTION 2. Safety clause. The
general assembly hereby finds, determines, and declares that this
act is necessary for the immediate preservation of the public
peace, health, and safety.
____________________________ ____________________________
Charles E. Berry Tom Norton
SPEAKER OF THE HOUSE PRESIDENT OF
OF REPRESENTATIVES THE SENATE
____________________________ ____________________________
Judith M. Rodrigue Patricia K. Dicks
CHIEF CLERK OF THE HOUSE ASSISTANT SECRETARY OF
OF REPRESENTATIVES THE SENATE
APPROVED________________________________________
_________________________________________
Roy Romer
GOVERNOR OF THE STATE
OF COLORADO