CO SB127

Prohibits creditors of consumer loans from collecting against a debtor's personal liability for secured loans in default unless the lender first attempts to collect from the collateral and the proceeds are insufficient to cover the outstanding loan balance and allowable collection costs.

Applies to credit unions, savings and loan associations, state banks, industrial banks, and mortgage lenders.

Exempts loans entered into prior to the effective date if they explicitly provide otherwise in the original agreement.

Takes effect at 12:01 a.m. on August 11, 2010, unless subject to a referendum petition, in which case it requires voter approval at the November 2010 general election.

Applies to loan collection efforts occurring on or after the applicable effective date.