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Colorado guaranty guide

Personal Guaranty Guide for Colorado

A borrower-focused guide to Colorado guaranty exposure, SBA owner guarantees, collateral sales, and post-default collection risk.

Last reviewed: May 26, 2026 by the BizLeaseCheck Editorial Team

General information, not legal or financial advice.

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Overview

Colorado guaranties should be reviewed for unlimited payment liability, future advances, waiver of defenses, personal collateral, and whether release or burn-down terms are actually written into the guaranty.

Colorado foreclosure and deficiency issues are often procedural and collateral-specific. Because confession-of-judgment treatment is high variance, this guide uses conservative flags instead of broad enforceability claims.

Enforceability topics to check

Confession of judgment / cognovitNeeds lawyer verification

Colorado commercial guaranty treatment of confession-of-judgment or cognovit language should be verified by Colorado counsel. Treat any clause that shortcuts service, appearance, or trial as a high-severity review item.

Colorado Revised Statutes — court procedure
Deficiency judgments after collateral saleNeeds lawyer verification

Colorado foreclosure sale and deficiency risk depend on the public-trustee or judicial path, bid requirements, collateral value, and guaranty wording. Guarantors should preserve valuation and sale-process objections where possible.

Colorado foreclosure statutes — Title 38, Article 38
Spousal signature and ECOAHigh confidence

Colorado is not a community-property state. ECOA / Regulation B still limits when a creditor can require a spouse or additional party to guarantee.

CFPB Regulation B / ECOA
Statute of limitationsMedium confidence

Colorado generally provides six years for actions to recover debt or enforce rights under instruments securing or evidencing debt, subject to accrual, demand, payment, and guaranty-specific issues.

C.R.S. § 13-80-103.5
Homestead exemptionMedium confidence

Colorado has homestead-exemption statutes, but the amount, occupancy requirements, mobile-home rules, waivers, and lien exceptions should be checked before relying on residence protection.

C.R.S. Title 38, Article 41

Borrower protections to negotiate

  • Strike confession-of-judgment, cognovit, and pre-authorized appearance language unless Colorado counsel approves it.
  • Cap guaranty exposure and exclude future advances or amendments without written guarantor consent.
  • Preserve collateral valuation, bid, notice, and commercially reasonable sale objections.
  • Keep spouse signatures limited to genuine collateral or credit-support requirements under ECOA.
  • Require release after payoff, refinance, business sale, or a written burn-down schedule.

Official resources

SBA Form 148 — Unconditional Guarantee SBA SOP 50 10 — Lender and Development Company Loan Programs 13 CFR § 120.160 — SBA loan conditions CFPB Regulation B / ECOA — 12 CFR Part 1002 Colorado Revised Statutes — official access page C.R.S. § 13-80-103.5 — six-year debt limitation C.R.S. Title 38, Article 41 — homestead exemptions

Legal-review notes

Guide confidence marker: Needs lawyer verification.

  • Colorado confession-of-judgment/cognovit treatment needs lawyer verification before paid promotion.
  • Colorado deficiency and public-trustee foreclosure statements should be reviewed by counsel against current Title 38 practice.
  • Colorado statute and homestead links include third-party public-law reproductions plus official access page; verify exact current sections before paid promotion.

Frequently asked questions

Can a Colorado guaranty include confession-of-judgment language?

This guide does not make a broad enforceability claim. Any Colorado cognovit or confession clause should be reviewed by local counsel before signing.

Does Colorado homestead law make a guaranty safe?

No. Homestead exemptions have limits and exceptions, and they do not eliminate consensual liens, deeds of trust, or non-exempt asset exposure.

What should Colorado borrowers negotiate first?

Start with a guaranty cap, removal of confession language, future-advance limits, collateral-sale defenses, and automatic release mechanics.