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Colorado Court Stays Proceedings Amid Appeal Over Opt-Out Statute

Colorado Court Stays Proceedings Amid Appeal Over Opt-Out Statute

In a recent legal development, the Colorado Attorney General and the UCCC Administrator have appealed to the 10th Circuit Court of Appeals following a preliminary injunction granted by Judge Domenico on June 18. This injunction prevents the enforcement of Colorado's opt-out statute and usury laws concerning out-of-state banks making loans to Colorado residents. On July 19, both the Attorney General and UCCC Administrator filed motions to stay proceedings in the District Court while awaiting the appeal's outcome. The defendants also sought a stay of the District Court's preliminary injunction order. On July 25, Magistrate Judge Kathryn A. Starnella granted a stay of all District Court proceedings until the 10th Circuit resolves the appeal. However, this stay does not affect the ongoing consideration of the defendants' motion regarding the preliminary injunction. The legal community now awaits Judge Domenico's ruling on this matter, which could have significant implications for banking regulations in Colorado.

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