(1) As used in this section, unless the context otherwise requires:
(a) Borrower means any person seeking to obtain a loan through the
services of a loan finder.
(b) Loan has the same meaning as set forth in section 5-1-301 (25), C.R.S.
(c) Loan finder means any person who, directly or indirectly, serves or
offers to serve as a lender or as an agent to obtain a loan or who holds himself or
herself out as capable of obtaining a loan for any person; except that the following
persons shall be exempt from the provisions of this section:
(I) A supervised financial organization, as defined in section 5-1-301 (45),
C.R.S., and its employees, when acting within the scope of their employment;
(II) A person duly licensed to make supervised loans pursuant to part 3 of
article 2 of title 5, C.R.S.;
(III) A business development corporation, created pursuant to article 48 of
title 7, C.R.S.;
(IV) A pawnbroker licensed pursuant to article 11.9 of title 29, acting as such;
(V) Any governmental entity or employee thereof, acting in his official
capacity;
(VI) A mortgage broker, as defined in paragraph (d) of this subsection (1),
acting as such.
(d) Mortgage broker means any person who, directly or indirectly, serves or
offers to serve as an agent for any person to obtain a loan secured by a mortgage,
deed of trust, or lien on real property.
(2) A loan finder shall not charge or collect any fee from a borrower until a
borrower actually receives the agreed-upon loan; except that nothing in this section
shall preclude a borrower from paying for a credit check or for an appraisal of
security for the loan where such payment is by check or money order made payable
to a party independent of the loan finder.
(3) In any proceeding brought pursuant to this section, the burden of
production with respect to an exemption from its provisions shall be upon the
person claiming the exemption, and said claim of exemption shall constitute an
affirmative defense.
(4) Any person who violates this section commits a petty offense. A violation
of this section shall also constitute a class 1 public nuisance subject to the
provisions of part 3 of article 13 of title 16.
Purchasers of Valuable Articles
L. 90: Entire section added, p. 382, § 3, effective July 1. L. 2000: (1)(b), (1)(c)(I), and (1)(c)(II) amended, p. 1873, § 110, effective August 2. L. 2017: IP(1)(c) and (1)(c)(IV) amended, (SB 17-228), ch. 246, p. 1041, § 5, effective August 9. L. 2021: (4) amended, (SB 21-271), ch. 462, p. 3217, § 378, effective March 1, 2022.
The Colorado Supreme Court held this entire article constitutional on the basis that it did not infringe on the federal government’s exclusive jurisdiction over the regulation of currency and gold and silver bullion nor does it place an impermissible burden on interstate commerce. See Exotic Coins, Inc. v. Beacom, 699 P.2d 930 (Colo. 1985).
