2016 Colorado Revised Statutes
Title 7 - Corporations and Associations
Associations
Article 58 - Uniform Limited Cooperative Association Act
Part 6 - Member's Interest in Limited Cooperative Association
§ 7-58-604. Security interest and set-off
(1) A member or transferee may create an enforceable security interest in its financial rights in a limited cooperative association.
(2) Unless the articles or bylaws otherwise provide, a member may not create an enforceable security interest in the member's governance rights in, or in the right or obligation, if any, to do business with, a limited cooperative association.
(3) The articles or bylaws may provide that a limited cooperative association has a security interest in the financial rights of a member to secure payment of any indebtedness or other obligation of the member to the association. A security interest provided for in the articles or bylaws is enforceable under, and governed by, article 9 of title 4, C.R.S.
(4) Unless the articles or bylaws otherwise provide, a member may not compel the limited cooperative association to offset financial rights against any indebtedness or obligation owed to the association.
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