Senate Bill 25-025 Corrected Introduced

A Bill for an Act

• Page 1, Line 101Concerning removing limitations on where a mortgagor can

• Page 1, Line 102file a mortgage on a vehicle to allow the mortgagor

• Page 1, Line 103to file in any county in the state.

Bill Summary

(Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://leg.colorado.gov.)

The bill removes the requirement that a first or junior mortgage holder has to file a mortgage on a motor or off-highway vehicle in the county in which the mortgagor resides or the vehicle is located to have the existence of the mortgage and the fact of its filing noted in the vehicle's certificate of title, and instead allows the mortgage holder to file the mortgage in any county in the state.

• Page 2, Line 1Be it enacted by the General Assembly of the State of Colorado:

• Page 2, Line 2SECTION 1.  In Colorado Revised Statutes, 42-6-121, amend (1) as follows:

• Page 2, Line 342-6-121.  Filing of mortgage - rules. (1)  The holder of a chattel

• Page 2, Line 4mortgage on a motor or off-highway vehicle, desiring to secure the rights

• Page 2, Line 5provided for in this part 1 and to have the existence of the mortgage and

• Page 2, Line 6the fact of the filing of the mortgage noted in the filing of the certificate

• Page 2, Line 7of title to the encumbered vehicle, must present the signed original or

• Page 2, Line 8signed duplicate of the mortgage or copy of the mortgage and the

• Page 2, Line 9certificate of title or application for certificate of title to the vehicle

• Page 2, Line 10encumbered to the authorized agent of the director in the county or city

• Page 2, Line 11and county in which the mortgagor of the vehicle resides or where the

• Page 2, Line 12vehicle is located any county in the state. The holder may file either

• Page 2, Line 13with paper documents or electronically. The mortgage or refinancing of

• Page 2, Line 14a loan secured by a mortgage must state the name and address of the

• Page 2, Line 15debtor; the name and address of the mortgagee or name of the

• Page 2, Line 16mortgagee's assignee; the make, vehicle identification number, and year

• Page 2, Line 17of manufacture of the mortgaged vehicle; and the date and amount of the

• Page 2, Line 18loan secured by the mortgage. An owner of a motor or off-highway

• Page 2, Line 19vehicle applying for a certificate of title under section 42-6-115,

• Page 2, Line 2042-6-116, or 42-6-119 is deemed to have filed under this section on behalf of the mortgage or lienholder.

• Page 2, Line 21SECTION 2.  In Colorado Revised Statutes, 42-6-129, amend (2) as follows:

• Page 2, Line 2242-6-129.  Second or other junior mortgages. (2)  The junior

• Page 3, Line 1mortgagee or the holder of the mortgage shall must file the mortgage as

• Page 3, Line 2required by section 42-6-121 with the authorized agent of the county

• Page 3, Line 3where the mortgagor of the motor or off-highway vehicle resides or

• Page 3, Line 4where the vehicle is located with the authorized agent of the

• Page 3, Line 5director in any county in the state with a written request to have the

• Page 3, Line 6existence of the mortgage noted or filed on the certificate of title records

• Page 3, Line 7of the authorized agent pertaining to the vehicle covered by the junior

• Page 3, Line 8mortgage. Upon the filing of the mortgage, the authorized agent shall note

• Page 3, Line 9in the record of the vehicle the day and hour when the mortgage was

• Page 3, Line 10received by the agent, shall make and deliver a receipt for the mortgage

• Page 3, Line 11to the person filing the mortgage, and shall file the mortgage as required

• Page 3, Line 12under section 42-6-122. If there is more than one mortgage or lien on the

• Page 3, Line 13motor or off-highway vehicle, the department's authorized agent may

• Page 3, Line 14electronically transmit the mortgage or lien to the first mortgage

• Page 3, Line 15mortgagee or lienholder and notify the first mortgage mortgagee or lienholder of any additional mortgages or liens.

• Page 3, Line 16SECTION 3.  In Colorado Revised Statutes, 42-6-116, amend (1) as follows:

• Page 3, Line 1742-6-116.  Applications for filing of certificates of title - rules.

• Page 3, Line 18(1)  If a person who desires or who is entitled to a filing of a certificate

• Page 3, Line 19of title to a motor or off-highway vehicle is required to apply to the

• Page 3, Line 20director or the authorized agent, the applicant shall must apply upon a

• Page 3, Line 21form provided by the director in which appears a description of the motor

• Page 3, Line 22or off-highway vehicle, including the make and model, the manufacturer's

• Page 3, Line 23number, and a description of any other distinguishing mark, number, or

• Page 3, Line 24symbol placed on the vehicle by the vehicle manufacturer for

• Page 3, Line 25identification purposes, as may be required by the director by rule adopted

• Page 4, Line 1in accordance with article 4 of title 24. C.R.S. The application must show

• Page 4, Line 2the name and correct address of the owner determined pursuant to section

• Page 4, Line 342-6-139; a class A, class B, class C, class D, or class F vehicle owner's

• Page 4, Line 4personal identification number as provided on a state-issued driver's

• Page 4, Line 5license or assigned by the department; and the applicant's source of title

• Page 4, Line 6and must include a description of all known mortgages and liens upon the

• Page 4, Line 7motor or off-highway vehicle, the holder of the lien, the amount originally

• Page 4, Line 8secured, and the name of the county and state if the owner holds a

• Page 4, Line 9certificate of title or the state if the owner does not hold a certificate of

• Page 4, Line 10title where the mortgage, lien, or financing statement is recorded. or filed.

• Page 4, Line 11The application must be verified by a statement signed by the applicant

• Page 4, Line 12and must contain or be accompanied by a written declaration that it is

• Page 4, Line 13made under the penalties of perjury in the second degree, as defined in section 18-8-503. C.R.S.

• Page 4, Line 14SECTION 4.  In Colorado Revised Statutes, 42-6-127, amend (1) as follows:

• Page 4, Line 1542-6-127.  Duration of lien of mortgage - extensions - rules.

• Page 4, Line 16(1)  The lien of a mortgage or refinancing of a mortgage filed in the

• Page 4, Line 17manner prescribed in section 42-6-121 or 42-6-129 shall remain remains

• Page 4, Line 18valid and enforceable for a period of ten years after the filing of the

• Page 4, Line 19certificate in the office of the director's authorized agent or until the

• Page 4, Line 20discharge of the mortgage on the vehicle, if the discharge occurs sooner,

• Page 4, Line 21except in the case of trailer coaches; truck tractors; multipurpose trailers,

• Page 4, Line 22if known when filed; and motor homes that are subject to the provisions

• Page 4, Line 23of subsection (3) of this section. During the ten-year period or any

• Page 4, Line 24extension of such period, the lien of the mortgage may be extended for

• Page 4, Line 25successive three-year periods upon the holder of the mortgage presenting

• Page 5, Line 1to the director's authorized agent of the county where the mortgage is

• Page 5, Line 2filed or in the county where the owner resides in any county a

• Page 5, Line 3certification of extension of chattel mortgage, subscribed by the holder of

• Page 5, Line 4the mortgage and acknowledged by the holder before an officer

• Page 5, Line 5authorized to acknowledge deeds to real property, in which shall appear

• Page 5, Line 6which must include a description of the mortgage on the vehicle, to

• Page 5, Line 7what extent it has been discharged or remains unperformed, and such

• Page 5, Line 8other information respecting the mortgage as may be required by

• Page 5, Line 9appropriate rule of the director to enable the director's authorized agent to properly record the extension.

• Page 5, Line 10SECTION 5.  Act subject to petition - effective date. This act

• Page 5, Line 11takes effect at 12:01 a.m. on the day following the expiration of the

• Page 5, Line 12ninety-day period after final adjournment of the general assembly; except

• Page 5, Line 13that, if a referendum petition is filed pursuant to section 1 (3) of article V

• Page 5, Line 14of the state constitution against this act or an item, section, or part of this

• Page 5, Line 15act within such period, then the act, item, section, or part will not take

• Page 5, Line 16effect unless approved by the people at the general election to be held in

• Page 5, Line 17November 2026 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.