Title 4, Uniform Commercial Code
0 chapters · 527 sections in this title.
Colo. Rev. Stat. § 4-3-206 Restrictive indorsement
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(a) An indorsement limiting payment to a particular person or otherwise prohibiting further transfer or negotiation of the instrument is not effective to prevent further transfer or negotiation of the instrument. (b) An indorsement stating a condition to the right of the indorsee…
Colo. Rev. Stat. § 4-3-207 Reacquisition
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Reacquisition of an instrument occurs if it is transferred to a former holder, by negotiation or otherwise. A former holder who reacquires the instrument may cancel indorsements made after the reacquirer first became a holder of the instrument. If the cancellation causes the inst…
Colo. Rev. Stat. § 4-3-301 Person entitled to enforce instrument
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Person entitled to enforce an instrument means (i) the holder of the instrument, (ii) a nonholder in possession of the instrument who has the rights of a holder, or (iii) a person not in possession of the instrument who is entitled to enforce the instrument pursuant to section 4-…
Colo. Rev. Stat. § 4-3-302 Holder in due course
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(a) Subject to subsection (c) of this section and section 4-3-106 (d) holder in due course means the holder of an instrument if: (1) The instrument when issued or negotiated to the holder does not bear such apparent evidence of forgery or alteration or is not otherwise so irregul…
Colo. Rev. Stat. § 4-3-303 Value and consideration
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(a) An instrument is issued or transferred for value if: (1) The instrument is issued or transferred for a promise of performance, to the extent the promise has been performed; (2) The transferee acquires a security interest or other lien in the instrument other than a lien obtai…
Colo. Rev. Stat. § 4-3-304 Overdue instrument
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(a) An instrument payable on demand becomes overdue at the earliest of the following times: (1) On the day after the day demand for payment is duly made; (2) If the instrument is a check, 90 days after its date; or (3) If the instrument is not a check, when the instrument has bee…
Colo. Rev. Stat. § 4-3-305 Defenses and claims in recoupment
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(a) Except as stated in subsection (b) of this section, the right to enforce the obligation of a party to pay an instrument is subject to the following: (1) A defense of the obligor based on (i) infancy of the obligor to the extent it is a defense to a simple contract, (ii) dures…
Colo. Rev. Stat. § 4-3-306 Claims to an instrument
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A person taking an instrument, other than a person having rights of a holder in due course, is subject to a claim of a property or possessory right in the instrument or its proceeds, including a claim to rescind a negotiation and to recover the instrument or its proceeds. A perso…
Colo. Rev. Stat. § 4-3-307 Notice of breach of fiduciary duty
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(a) In this section: (1) Fiduciary means an agent, trustee, partner, corporate officer or director, or other representative owing a fiduciary duty with respect to an instrument. (2) Represented person means the principal, beneficiary, partnership, corporation, or other person to …
Colo. Rev. Stat. § 4-3-308 Proof of signatures and status as holder in due course
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(a) In an action with respect to an instrument, the authenticity of, and authority to make, each signature on the instrument is admitted unless specifically denied in the pleadings. If the validity of a signature is denied in the pleadings, the burden of establishing validity is …
Colo. Rev. Stat. § 4-3-309 Enforcement of lost, destroyed, or stolen instrument
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(a) A person not in possession of an instrument is entitled to enforce the instrument if (i) the person was in possession of the instrument and entitled to enforce it when loss of possession occurred, (ii) the loss of possession was not the result of a transfer by the person or a…
Colo. Rev. Stat. § 4-3-310 Effect of instrument on obligation for which taken
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(a) Unless otherwise agreed, if a certified check, cashier's check, or teller's check is taken for an obligation, the obligation is discharged to the same extent discharge would result if an amount of money equal to the amount of the instrument were taken in payment of the obliga…
Colo. Rev. Stat. § 4-3-311 Accord and satisfaction by use of instrument
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(a) If a person against whom a claim is asserted proves that (i) that person in good faith tendered an instrument to the claimant as full satisfaction of the claim, (ii) the amount of the claim was unliquidated or subject to a bona fide dispute, and (iii) the claimant obtained pa…
Colo. Rev. Stat. § 4-3-312 Lost, destroyed, or stolen cashier’s check, teller’s check, or certified check
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(a) In this section: (1) “Check ” means a cashier’s check, teller’s check, or certified check. (2) “Claimant ” means a person who claims the right to receive the amount of a cashier’s check, teller’s check, or certified check that was lost, destroyed, or stolen. (3) “Declaration …
Colo. Rev. Stat. § 4-3-401 Signature necessary for liability on instrument
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A person is not liable on an instrument unless (i) the person signed the instrument or (ii) the person is represented by an agent or representative who signed the instrument and the signature is binding on the represented person under section 4-3-402. Source: L. 94: Entire articl…
Colo. Rev. Stat. § 4-3-402 Signature by representative
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(a) If a person acting, or purporting to act, as a representative signs an instrument by signing either the name of the represented person or the name of the signer, the represented person is bound by the signature to the same extent the represented person would be bound if the s…
Colo. Rev. Stat. § 4-3-403 Unauthorized signature
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(a) Unless otherwise provided in this article or article 4 of this title, an unauthorized signature is ineffective except as the signature of the unauthorized signer in favor of a person who in good faith pays the instrument or takes it for value. An unauthorized signature may be…
Colo. Rev. Stat. § 4-3-404 Impostors; fictitious payees
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(a) If an impostor, by use of the mails or otherwise, induces the issuer of an instrument to issue the instrument to the impostor, or to a person acting in concert with the impostor, by impersonating the payee of the instrument or a person authorized to act for the payee, an indo…
Colo. Rev. Stat. § 4-3-405 Employer’s responsibility for fraudulent indorsement by employee
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(a) In this section: (1) “Employee ” includes an independent contractor and employee of an independent contractor retained by the employer. (2) “Fraudulent indorsement ” means (i) in the case of an instrument payable to the employer, a forged indorsement purporting to be that of …
Colo. Rev. Stat. § 4-3-406 Negligence contributing to forged signature or alteration of instrument
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(a) A person whose failure to exercise ordinary care contributes to an alteration of an instrument or to the making of a forged signature on an instrument is precluded from asserting the alteration or the forgery against a person who, in good faith, pays the instrument or takes i…
Colo. Rev. Stat. § 4-3-407 Alteration
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(a) Alteration means (i) an unauthorized change in an instrument that purports to modify in any respect the obligation of a party, or (ii) an unauthorized addition of words or numbers or other change to an incomplete instrument relating to the obligation of a party. (b) Except as…
Colo. Rev. Stat. § 4-3-408 Drawee not liable on unaccepted draft
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A check or other draft does not of itself operate as an assignment of funds in the hands of the drawee available for its payment, and the drawee is not liable on the instrument until the drawee accepts it. Source: L. 94: Entire article R&RE, p. 865, � 1, effective January 1, 1995…
Colo. Rev. Stat. § 4-3-409 Acceptance of draft; certified check
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(a) Acceptance means the drawee's signed agreement to pay a draft as presented. It must be written on the draft and may consist of the drawee's signature alone. Acceptance may be made at any time and becomes effective when notification pursuant to instructions is given or the acc…
Colo. Rev. Stat. § 4-3-410 Acceptance of varying draft
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(a) If the terms of a drawee's acceptance vary from the terms of the draft as presented, the holder may refuse the acceptance and treat the draft as dishonored. In that case, the drawee may cancel the acceptance. (b) The terms of a draft are not varied by an acceptance to pay at …
Colo. Rev. Stat. § 4-3-411 Refusal to pay cashier’s checks, teller’s checks, and certified checks
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(a) In this section, “obligated bank ” means the acceptor of a certified check or the issuer of a cashier’s check or teller’s check bought from the issuer. (b) If the obligated bank wrongfully (i) refuses to pay a cashier’s check or certified check, (ii) stops payment on a teller…
Colo. Rev. Stat. § 4-3-412 Obligation of issuer of note or cashier's check
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The issuer of a note or cashier's check or other draft drawn on the drawer is obliged to pay the instrument (i) according to its terms at the time it was issued or, if not issued, at the time it first came into possession of a holder, or (ii) if the issuer signed an incomplete in…
Colo. Rev. Stat. § 4-3-413 Obligation of acceptor
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(a) The acceptor of a draft is obliged to pay the draft (i) according to its terms at the time it was accepted, even though the acceptance states that the draft is payable as originally drawn or equivalent terms, (ii) if the acceptance varies the terms of the draft, according to …
Colo. Rev. Stat. § 4-3-414 Obligation of drawer
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(a) This section does not apply to cashier's checks or other drafts drawn on the drawer. (b) If an unaccepted draft is dishonored, the drawer is obliged to pay the draft (i) according to its terms at the time it was issued or, if not issued, at the time it first came into possess…
Colo. Rev. Stat. § 4-3-415 Obligation of indorser
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(a) Subject to subsections (b), (c), (d) and (e) of this section and to section 4-3-419 (d), if an instrument is dishonored, an indorser is obliged to pay the amount due on the instrument (i) according to the terms of the instrument at the time it was indorsed, or (ii) if the ind…
Colo. Rev. Stat. § 4-3-416 Transfer warranties
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(a) A person who transfers an instrument for consideration warrants to the transferee and, if the transfer is by indorsement, to any subsequent transferee that: (1) The warrantor is a person entitled to enforce the instrument; (2) All signatures on the instrument are authentic an…
Colo. Rev. Stat. § 4-3-417 Presentment warranties
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(a) If an unaccepted draft is presented to the drawee for payment or acceptance and the drawee pays or accepts the draft, (i) the person obtaining payment or acceptance, at the time of presentment, and (ii) a previous transferor of the draft, at the time of transfer, warrant to t…
Colo. Rev. Stat. § 4-3-418 Payment or acceptance by mistake
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(a) Except as provided in subsection (c) of this section, if the drawee of a draft pays or accepts the draft and the drawee acted on the mistaken belief that (i) payment of the draft had not been stopped pursuant to section 4-4-403 or (ii) the signature of the drawer of the draft…
Colo. Rev. Stat. § 4-3-419 Instruments signed for accommodation
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(a) If an instrument is issued for value given for the benefit of a party to the instrument (accommodated party) and another party to the instrument (accommodation party) signs the instrument for the purpose of incurring liability on the instrument without being a direct benefici…
Colo. Rev. Stat. § 4-3-420 Conversion of instrument
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(a) The law applicable to conversion of personal property applies to instruments. An instrument is also converted if it is taken by transfer, other than a negotiation, from a person not entitled to enforce the instrument or a bank makes or obtains payment with respect to the inst…
Colo. Rev. Stat. § 4-3-501 Presentment
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(a) Presentment means a demand made by or on behalf of a person entitled to enforce an instrument (i) to pay the instrument made to the drawee or a party obliged to pay the instrument or, in the case of a note or accepted draft payable at a bank, to the bank, or (ii) to accept a …
Colo. Rev. Stat. § 4-3-502 Dishonor
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(a) Dishonor of a note is governed by the following rules: (1) If the note is payable on demand, the note is dishonored if presentment is duly made to the maker and the note is not paid on the day of presentment. (2) If the note is not payable on demand and is payable at or throu…
Colo. Rev. Stat. § 4-3-503 Notice of dishonor
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(a) The obligation of an indorser stated in section 4-3-415 (a) and the obligation of a drawer stated in section 4-3-414 (d) may not be enforced unless (i) the indorser or drawer is given notice of dishonor of the instrument complying with this section or (ii) notice of dishonor …
Colo. Rev. Stat. § 4-3-504 Excused presentment and notice of dishonor
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(a) Presentment for payment or acceptance of an instrument is excused if (i) the person entitled to present the instrument cannot with reasonable diligence make presentment, (ii) the maker or acceptor has obligation to pay the instrument or is dead or in insolvency proceedings, (…
Colo. Rev. Stat. § 4-3-505 Evidence of dishonor
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(a) The following are admissible as evidence and create a presumption of dishonor and of any notice of dishonor stated: (1) A document regular in form as provided in subsection (b) of this section which purports to be a protest; (2) A purported stamp or writing of the drawee, pay…
Colo. Rev. Stat. § 4-3-506 Recording credit card or social security numbers prohibited
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(a) When payment is made by check or other negotiable instrument, a person shall not record or require the maker of the check to record a credit card or social security number given as identification or proof of creditworthiness. (b) Subsection (a) of this section shall not prohi…
Colo. Rev. Stat. § 4-3-601 Discharge and effect of discharge
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(a) The obligation of a party to pay the instrument is discharged as stated in this article or by an act or agreement with the party which would discharge an obligation to pay money under a simple contract. (b) Discharge of the obligation of a party is not effective against a per…
Colo. Rev. Stat. § 4-3-602 Payment
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(a) Subject to subsection (b) of this section, an instrument is paid to the extent payment is made (i) by or on behalf of a party obliged to pay the instrument, and (ii) to a person entitled to enforce the instrument. To the extent of the payment, the obligation of the party obli…
Colo. Rev. Stat. § 4-3-603 Tender of payment
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(a) If tender of payment of an obligation to pay an instrument is made to a person entitled to enforce the instrument, the effect of tender is governed by principles of law applicable to tender of payment under a simple contract. (b) If tender of payment of an obligation to pay a…
Colo. Rev. Stat. § 4-3-604 Discharge by cancellation or renunciation
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(a) A person entitled to enforce an instrument, with or without consideration, may discharge the obligation of a party to pay the instrument (i) by an intentional voluntary act, such as surrender of the instrument to the party, destruction, mutilation, or cancellation of the inst…
Colo. Rev. Stat. § 4-3-605 Discharge of indorsers and accommodation parties
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(a) In this section, the term indorser includes a drawer having the obligation described in section 4-3-414 (d). (b) Discharge, under section 4-3-604, of the obligation of a party to pay an instrument does not discharge the obligation of an indorser or accommodation party having …
Colo. Rev. Stat. § 4-4-101 Short title
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This article may be cited as the Uniform Commercial Code - Bank Deposits and Collections. Source: L. 94: Entire article amended with relocations, p. 879, � 2, effective January 1, 1995.
Colo. Rev. Stat. § 4-4-102 Applicability
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(a) To the extent that items within this article are also within articles 3 and 8 of this title, they are subject to those articles. If there is conflict, this article governs said article 3, but article 8 governs this article. (b) The liability of a bank for action or nonaction …
Colo. Rev. Stat. § 4-4-103 Variation by agreement - measure of damages - action constituting ordinary care
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(a) The effect of the provisions of this article may be varied by agreement, but the parties to the agreement cannot disclaim a bank’s responsibility for its lack of good faith or failure to exercise ordinary care or limit the measure of damages for the lack or failure. However, …
Colo. Rev. Stat. § 4-4-104 Definitions and index of definitions
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(a) In this article, unless the context otherwise requires: (1) Account means any deposit or credit account with a bank, including a demand, time, savings, passbook, share draft, or like account, other than an account evidenced by a certificate of deposit; (2) Afternoon means the…
Colo. Rev. Stat. § 4-4-105 “Bank” - “depositary bank” - “intermediary bank” - “collecting bank” - “payor bank” - “presenting bank”
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(1) In this article: (1) “Bank” means a person engaged in the business of banking, including a savings bank, savings and loan association, credit union, or trust company. (2) “Depositary bank” means the first bank to take an item even though it is also the payor bank, unless the …