Colo. Rev. Stat. » Title 4
Colorado Revised Statutes

Colo. Rev. Stat. § 4-2-702 (2026)

Seller's remedies on discovery of buyer's insolvency

✓ current as of July 2026
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(1) Where the seller discovers the buyer to be insolvent, he may refuse delivery except for cash, including payment for all goods theretofore delivered under the contract, and stop delivery under this article (section 4-2-705).

(2) Where the seller discovers that the buyer has received goods on credit while insolvent, he may reclaim the goods upon demand made within ten days after the receipt, but if misrepresentation of solvency has been made to the particular seller in writing within three months before delivery, the ten day limitation does not apply. Except as provided in this subsection (2), the seller may not base a right to reclaim goods on the buyer's fraudulent or innocent misrepresentation of solvency or of intent to pay.

(3) The seller's right to reclaim under subsection (2) of this section is subject to the rights of a buyer in ordinary course or other good faith purchaser under this article (section 4-2- 403). Successful reclamation of goods excludes all other remedies with respect to them.

Source: L. 65: p. 1334, § 1. C.R.S. 1963: § 155-2-702. L. 77: (3) amended, p. 313, § 7, effective January 1, 1978.

Notes of Decisions
Cited in 2 cases, 1976–1986 · leading case: Ranchers & Farmers Livestock Auc. Co. v. Honey, 552 P.2d 313 (Colo. Ct. App. 1976).
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Ranchers & Farmers Livestock Auc. Co. v. Honey, 552 P.2d 313 (Colo. Ct. App. 1976). · cites it 4× “It also asserts that it should be awarded the proceeds from the sale of the cattle by defendants pursuant to reclamation under either (1) § 4-2-702, C.R.S.1973, or N.M. Stat.Ann. § 50A-2-702 (1962), or (2) § 4-2-507, C.”
In Re Mesa Refining, Inc., 66 B.R. 36 (Bankr.D. Colo. 1986). · cites it 2× “§ 546 and C.R.S. § 4-2-702. In general, both statutes state that demand for reclamation must be made within ten days after receipt.”
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