(1) Notwithstanding any custom, practice, or usage of the trade and any of the provisions of section 4-2-326, C.R.S., to the contrary, whenever an artist delivers or causes to be delivered a work of fine art of his own creation to an art dealer for the purpose of exhibition or sale on a commission, fee, or other basis of compensation, the delivery to and acceptance thereof by the art dealer is deemed to place the work on consignment and:
Such art dealer shall thereafter, with respect to the work, be deemed to be the agentof such artist;
Such work is trust property in the hands of the consignee for the benefit of the consignor; and
Any proceeds from the sale of the work are trust funds in the hands of the consigneefor the benefit of the consignor.
Notwithstanding the subsequent purchase of a work of fine art by the consignee directly or indirectly for his own account, the work initially received on consignment shall be deemed to remain trust property until the price is paid in full to the consignor. If such work is thereafter resold to a bona fide third party before the consignor has been paid in full, the proceeds of the resale are trust funds in the hands of the consignee for the benefit of the consignor to the extent necessary to pay any balance still due to the consignor, and such trusteeship shall continue until the fiduciary obligation of the consignee with respect to such transaction is discharged in full.
Notwithstanding the provisions of the "Uniform Commercial Code - Sales", no suchtrust property or trust funds shall be subject to or subordinate to any claims, liens, or security interests of the consignee's creditors.
An art dealer is strictly liable for the loss of or damage to a work of fine art while itis in his possession. The value of the work of fine art is, for the purposes of this subsection (4), the value established in a written agreement between the artist and the art dealer prior to the loss or damage of the work.
Source: L. 82: Entire article added, p. 230, § 1, effective March 25. L. 95: (4) amended, p. 192, § 2, effective April 13.
Editor's note: Changes in the internal numbering and lettering of subsection (1) were made on revision in 1998 to conform to standard C.R.S. format.
Cross references: For the provisions in the "Uniform Commercial Code" concerning sales, see article 2 of title 4.