(a) This section applies to cases in which there is no outstanding secured obligation and the secured party is not committed to make advances, incur obligations, or otherwise give value.
(b) Within five business days after receiving an authenticated demand by the debtor:
A secured party having control of a deposit account under section 4-9-104 (a)(2) shall send to the bank with which the deposit account is maintained an authenticated statement that releases the bank from any further obligation to comply with instructions originated by the secured party;
A secured party having control of a deposit account under section 4-9-104 (a)(3) shall:
Pay the debtor the balance on deposit in the deposit account; or
At the request of the debtor, transfer the balance on deposit into a deposit account inthe debtor's name, providing sufficient information so that the debtor can access the deposit account.
(2.5) The amount due the debtor shall also include all interest earned on the deposit account to the extent not already credited to the deposit account or paid to the debtor from the date the conditions in subsection (a) of this section are satisfied.
(3) A secured party, other than a buyer, having control of electronic chattel paper under section 4-9-105 shall:
Communicate the authoritative copy of the electronic chattel paper to the debtor orits designated custodian;
If the debtor designates a custodian that is the designated custodian with which theauthoritative copy of the electronic chattel paper is maintained for the secured party, communicate to the custodian an authenticated record releasing the designated custodian from any further obligation to comply with instructions originated by the secured party and instructing the custodian to comply with instructions originated by the debtor; and
Take appropriate action to enable the debtor or its designated custodian to makecopies of or revisions to the authoritative copy which add or change an identified assignee of the authoritative copy without the consent of the secured party;
A secured party having control of investment property under section 4-8-106 (d)(2) or 4-9-106 (b) shall send to the securities intermediary or commodity intermediary with which the security entitlement or commodity contract is maintained an authenticated record that releases the securities intermediary or commodity intermediary from any further obligation to comply with entitlement orders or directions originated by the secured party;
A secured party having control of a letter-of-credit right under section 4-9-107 shallsend to each person having an unfulfilled obligation to pay or deliver proceeds of the letter of credit to the secured party an authenticated release from any further obligation to pay or deliver proceeds of the letter of credit to the secured party; and
A secured party having control of an electronic document shall:
Give control of the electronic document to the debtor or its designated custodian;
If the debtor designates a custodian that is the designated custodian with which theauthoritative copy of the electronic document is maintained for the secured party, communicate to the custodian an authenticated record releasing the designated custodian from any further obligation to comply with instructions originated by the secured party and instructing the custodian to comply with instructions originated by the debtor; and
Take appropriate action to enable the debtor or its designated custodian to makecopies of or revisions to the authoritative copy that add or change an identified assignee of the authoritative copy without the consent of the secured party.
Source: L. 2001: Entire article R&RE, p. 1338, § 1, effective July 1. L. 2006: (b)(4) and (b)(5) amended and (b)(6) added, p. 500, § 36, effective September 1.
Editor's note - Colorado legislative change: Colorado substituted the phrase "five business" for the word "10" in the introductory portion to subsection (b), added the phrases "At the request of the debtor," and "providing sufficient information so that the debtor can access the deposit account" in subsection (b)(2)(B), and added a new subsection (b)(2.5).