CO HB1356

Amends Colorado law to require creditors to release liens on real property within 90 days after debt satisfaction and receipt of reasonable recording costs, unless the debtor requests the lien remain in place.

Creditor or holder who fails to comply with lien release requirements is liable to the property owner and other liable parties for actual economic loss, reasonable attorney fees, and costs.

For lines of credit secured by real property liens, the lien continues until the line of credit expires and all indebtedness is paid, unless the debtor terminates the line in writing or notifies the creditor the property is being sold.

When a line of credit is terminated due to property conveyance, the creditor must record the lien release, file required documents with the public trustee if applicable, and return all debtor papers and personal property.

Act applies to requirements for satisfaction of indebtedness secured by real property on or after the effective date, with the effective date contingent on whether a referendum petition is filed within 90 days of final adjournment.