HB11-1139 Summary

• Prohibits creditors, credit unions, savings and loan associations, state banks, industrial banks, and mortgage lenders from collecting secured loan debts from a debtor's personal liability unless the lender first attempts to collect by taking possession of or foreclosing on the collateral.

• Requires that collateral proceeds be insufficient to fully repay the outstanding loan balance plus the lender's allowable collection costs before personal liability collection can be pursued.

• Applies to loans entered into after the effective date unless the loan agreement explicitly provides otherwise; does not apply to loans predating the act's effective date.

• Takes effect August 10, 2011, or if subject to a referendum petition, only upon voter approval at the November 2012 general election.

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