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i <br />r <br />area without the prior consent of the board. A financial warrantor that provides a lien on <br />such equipment and fixtures shall file an annual report with the office; in sufficient detail to <br />fully describe the condition, value, and location of all pledged fixtures and equipment. Such <br />financial warrantor shall not pledge such equipment and fixtures to secure any other <br />obligation and shall immediately notify the office of any other interest that arises in the <br />pledged property. <br />34-32.5-118. Forfeiture of financial warranties. (1) A financial warranty shall be <br />subject to forfeiture whenever the board determines that one or more of the following <br />circumstances exist: <br />(a) The operator has violated a cease-and-desist order entered pursuant to section <br />34-32.5-124 and, if corrective action was proposed in such order, has failed to complete such <br />corrective action although ample time to do so has elapsed; or <br />(b) The operator is in default under a performance warranty and has failed to cure <br />such default although the operator has been given written notice and has had ample time to <br />do so; or <br />(c) The financial warrantor has failed to maintain a financial warranty in good <br />standing as required by section 34-32.5-117; or <br />(d) The financial warrantor no longer has the financial ability to carry out any <br />obligations required under this article. <br />(2) When the board has reason to believe a financial warranty is subject to forfeiture, <br />it shall so notify the operator and all financial warrantors. The board shall grant the operator <br />and all financial warrantors the right to appear before the board at a hearing to be held not <br />less than thirty days after the parties' receipt of such notice. Any such hearing shall be held <br />in accordance with article 4 of title 24, C.R.S. <br />(3) (a) At a hearing held pursuant to subsection (2) of this section, the board may <br />withdraw or modify any determination that the financial warranty is subject to forfeiture, <br />settle or compromise the determination, or confirm its determination that the financial <br />warranty should be forfeited. <br />(b) Upon finding that a financial warranty should be forfeited, the board shall issue <br />written findings of fact and conclusions of law to support its decision and shall issue an order <br />directing affected financial warrantors to immediately deliver to the board all amounts <br />warranted by applicable financial warranties. <br />(4) (a) The board, upon issuing an order pursuant to subsection (3) of this section, <br />may request the attorney general to institute proceedings to secure or recover amounts <br />warranted by forfeited financial warranties. The attorney general shall have the power, inter <br />alia, to: <br />(I) Foreclose upon any real and personal property encumbered for the benefit of the <br />state; <br />(II) Collect, present for payment, take possession of, and otherwise reduce to cash any <br />property held as security by the board; <br />(III) Dispose of pledged property. <br />(b) The amount of a forfeited financial warranty shall constitute a lien upon