Colorado Code § 15-12-814

Encumbered assets
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If any assets of the estate are encumbered by mortgage,
pledge, lien, or other security interest, the personal representative may pay the encumbrance or
any part thereof, renew or extend any obligation secured by the encumbrance, or convey or
transfer the assets to the creditor in satisfaction of his lien, in whole or in part, whether or not the
holder of the encumbrance has presented a claim, if it appears to be in the best interest of the
estate. Payment of an encumbrance does not increase the share of the distributee entitled to the
encumbered assets unless the distributee is entitled to exoneration.

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