BILL SUMMARY for SB09-150
HOUSE COMMITTEE ON BUSINESS AFFAIRS AND LABOR
|Moved amendment L.002 (Attachment A). The motion
Moved to refer Senate Bill 09-150, as amended, to
|Pass Without Objection
09:53 AM -- Senate Bill 09-150
Representative Levy, prime sponsor, presented Senate Bill 09-150 concerning the priority of a purchase-money lien for a motor vehicle. When a party is providing financing to sell a motor vehicle, that party is said to have a purchase-money security interest in the vehicle. Currently, if the borrower defaults on the motor vehicle loan, lien holders are entitled to the value of the vehicle based on the order in which the lien was filed.
Under this bill, the priority of repayment is changed such that the party that made the original loan, the party with a purchase-money security interest, receives first priority for repayment. This is conditioned upon the vehicle loan being perfected (filed with the County Clerk) within 20 days of possession of the motor vehicle. This new arrangement aligns motor vehicle purchases with the Uniform Commercial Code.
Representative Balmer asked whether other states have this type of law. Representative Levy said she was not sure, but her witness might be able to answer his question.
09:56 AM -- Mark Robey, representing the Credit Union Association of Colorado, testified in support of the bill.
Representative Levy explained that amendment L.002 (Attachment A) strikes section three of the bill and adds a safety clause.
| 10:00:39 AM
|Moved to refer Senate Bill 09-150, as amended, to the Committee of the Whole. The motion passed 11-0.
Final YES: 11 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS