CO SB022

Expands the definition of "qualified holder" under Colorado foreclosure law to include Certified Community Development Financial Institutions (CDFIs) that maintain active certification from the U.S. Department of Treasury's Community Development Financial Institutions Fund.

CDFIs must meet seven requirements to qualify as a "qualified holder": be a legal entity, have a primary community development mission, be a financing entity, primarily serve target markets defined by the fund, promote development services with financing activities, maintain accountability to target markets, and be nongovernmental (with an exception for tribal governments).

Permits qualified holders, including CDFIs, to foreclose on properties and release pledged collateral without presenting the original promissory note.

Qualified holders foreclosing without original evidence of debt are required to indemnify and defend persons liable for repayment if the original debt is later presented for payment, limited to actual economic losses plus court costs and reasonable attorney fees, excluding special or punitive damages.

Takes effect August 6, 2014, unless subject to a referendum petition, in which case it becomes effective only upon voter approval at the November 2014 general election.