The Colorado Supreme Court issued its opinion in Hassler v. Account Brokers of Larimer County, Inc. on April 16, 2012.
Secured Transactions—Statute of Limitations—Optional Acceleration Clause.
The Supreme Court held that the claim in this action was barred by the six-year statute of limitations. The Court found that, to determine when the statute of limitations is triggered for the recovery of a debt repayable in installments, the determining factor is not the date the debt became liquidated or determinable, but rather the date the debt was due. Here, the debt became due when plaintiff’s predecessor-in-interest unequivocally manifested its intent to invoke its optional acceleration provision by repossessing the collateral and demanding full payment from the debtor before the collateral could be redeemed. Because this acceleration occurred more than six years before the initiation of this action, the claim was barred by the statute of limitations. The district court’s judgment was reversed.
Summary and full case available here.