(a) A transferee of money takes the money free of a security interest if the transferee receives possession of the money without acting in collusion with the debtor in violating the rights of the secured party.
(b) A transferee of funds from a deposit account takes the funds free of a security interest in the deposit account if the transferee receives the funds without acting in collusion with the debtor in violating the rights of the secured party.
Source: L. 2001: Entire article R&RE, p. 1366, § 1, effective July 1. L. 2023: Entire section amended, (SB 23-090), ch. 136, p. 557, § 68, effective August 7.
ANNOTATION
A transfer from a deposit account into a COLTAF account is a transfer for purposes of this section. In re 3PL4PL, 619 B.R. 441 (Bankr. D. Colo. 2020).
Applied in In re 3PL4PL, 619 B.R. 441 (Bankr. D. Colo. 2020).