Colorado passed a bill enacting release of lien requirements with respect to lines of credit. Under the bill, if a line of credit is secured by a lien on real property, the lender or servicer must release the lien in the event the line of credit expires and all indebtedness has been satisfied. The bill also requires the lender or servicer to release the lien and terminate the line of credit if, prior to the expiration of the line of credit, all outstanding indebtedness is satisfied and the borrower relinquishes (in writing) all right to make any further draws upon the line of credit. The bill becomes effective August 10, 2016.
See Colorado General Assembly website for the full text of the Statutes:
