C.R.S. § 6-10-123: Misappropriation by debtor.

An assignment is not invalid because of misappropriation of the property of the debtor by the debtor prior to the assignment, but the assignee may recover the property if it was misappropriated in fraud of this article 10. Nothing in this article 10 invalidates any conveyance or mortgage of property, real or personal, by the debtor before the assignment, made in good faith, for a valid and valuable consideration.