Moorehead v. John Deere Industrial Equipment Co.

We granted certiorari to consider whether a sale of personal property for delinquent taxes extinguishes a prior security interest and delivers to the tax sale purchaser a clear title. We reverse the court of appeals, John Deere Industrial Equip. Co. v. Moorehead, 38 Colo. App. 220, 556 P.2d 91, and hold that a personal property tax sale under the provisions of section 39-10-111(7), C.R.S. 1973 extinguishes all prior liens and encumbrances.

In November 1972, Dennis Dubbell purchased two John Deere backhoes. The seller assigned the retail sale installment contract to respondent John Deere…