Title 4, Uniform Commercial Code
0 chapters · 527 sections in this title.
Colo. Rev. Stat. § 4-4-106 Payable through or payable at bank - collecting bank
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(a) If an item states that it is payable through a bank identified in the item, (i) the item designates the bank as a collecting bank and does not by itself authorize the bank to pay the item, and (ii) the item may be presented for payment only by or through the bank. (b) If an i…
Colo. Rev. Stat. § 4-4-107 Separate office of bank
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A branch or separate office of a bank is a separate bank for the purpose of computing the time within which and determining the place at or to which action may be taken or notices or orders must be given under this article and under article 3 of this title. Source: L. 94: Entire …
Colo. Rev. Stat. § 4-4-108 Time of receipt of items
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(a) For the purpose of allowing time to process items, prove balances, and make the necessary entries on its books to determine its position for the day, a bank may fix an afternoon hour of 2 p.m. or later as a cutoff hour for the handling of money and items and the making of ent…
Colo. Rev. Stat. § 4-4-109 Delays
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(a) Unless otherwise instructed, a collecting bank in a good faith effort to secure payment of a specific item drawn on a payor other than a bank, and with or without the approval of any person involved, may waive, modify, or extend time limits imposed or permitted by this title …
Colo. Rev. Stat. § 4-4-110 Electronic presentment
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(a) Agreement for electronic presentment means an agreement, clearing-house rule, or federal reserve regulation or operating circular, providing that presentment of an item may be made by transmission of an image of an item or information describing the item (presentment notice) …
Colo. Rev. Stat. § 4-4-111 Statute of limitations
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An action to enforce an obligation, duty, or right arising under this article must be commenced within three years after the cause of action accrues. Source: L. 94: Entire article amended with relocations, p. 885, � 2, effective January 1, 1995.
Colo. Rev. Stat. § 4-4-201 Status of collecting banks as agent and provisional status of credits - applicability of article - item indorsed “pay any bank”
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(a) Unless a contrary intent clearly appears and before the time that a settlement given by a collecting bank for an item is or becomes final, the bank, with respect to the item, is an agent or subagent of the owner of the item and any settlement given for the item is provisional…
Colo. Rev. Stat. § 4-4-202 Responsibility for collection or return - when action timely
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(a) A collecting bank must exercise ordinary care in: (1) Presenting an item or sending it for presentment; (2) Sending notice of dishonor or nonpayment or returning an item other than a documentary draft to the bank's transferor after learning that the item has not been paid or …
Colo. Rev. Stat. § 4-4-203 Effect of instructions
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Subject to article 3 of this title concerning conversion of instruments (section 4-3-420) and restrictive indorsements (section 4-3-206), only a collecting bank's transferor can give instructions that affect the bank or constitute notice to it, and a collecting bank is not liable…
Colo. Rev. Stat. § 4-4-204 Methods of sending and presenting - sending directly to payor bank
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(a) A collecting bank shall send items by a reasonably prompt method, taking into consideration relevant instructions, the nature of the item, the number of those items on hand, the cost of collection involved, and the method generally used by it or others to present those items.…
Colo. Rev. Stat. § 4-4-205 Depositary bank holder of unindorsed item
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If a customer delivers an item to a depositary bank for collection: (1) The depositary bank becomes a holder of the item at the time it receives the item for collection if the customer at the time of delivery was a holder of the item, whether or not the customer indorses the item…
Colo. Rev. Stat. § 4-4-206 Transfer between banks
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Any agreed method that identifies the transferor bank is sufficient for the item's further transfer to another bank. Source: L. 94: Entire article amended with relocations, p. 887, � 2, effective January 1, 1995.
Colo. Rev. Stat. § 4-4-207 Transfer warranties
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(a) A customer or collecting bank that transfers an item and receives a settlement or other consideration warrants to the transferee and to any subsequent collecting bank that: (1) The warrantor is a person entitled to enforce the item; (2) All signatures on the item are authenti…
Colo. Rev. Stat. § 4-4-208 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. § 4-4-209 Encoding and retention warranties
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(a) A person who encodes information on or with respect to an item after issue warrants to any subsequent collecting bank and to the payor bank or other payor that the information is correctly encoded. If the customer of a depositary bank encodes, that bank also makes the warrant…
Colo. Rev. Stat. § 4-4-210 Security interest of collecting bank in items, accompanying documents, and proceeds
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(a) A collecting bank has a security interest in an item and any accompanying documents or the proceeds of either: (1) In case of an item deposited in an account, to the extent to which credit given for the item has been withdrawn or applied; (2) In case of an item for which it h…
Colo. Rev. Stat. § 4-4-211 When bank gives value for purposes of holder in due course
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For purposes of determining its status as a holder in due course, a bank has given value to the extent it has a security interest in an item, if the bank otherwise complies with the requirements of section 4-3-302 on what constitutes a holder in due course. Source: L. 94: Entire …
Colo. Rev. Stat. § 4-4-212 Presentment by notice of item not payable by, through, or at a bank - liability of drawer or indorser
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(a) Unless otherwise instructed, a collecting bank may present an item not payable by, through, or at a bank by sending to the party to accept or pay a written notice that the bank holds the item for acceptance or payment. The notice must be sent in time to be received on or befo…
Colo. Rev. Stat. § 4-4-213 Medium and time of settlement by bank
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(a) With respect to settlement by a bank, the medium and time of settlement may be prescribed by federal reserve regulations or circulars, clearing-house rules, and the like, or agreement. In the absence of such prescription: (1) The medium of settlement is cash or credit to an a…
Colo. Rev. Stat. § 4-4-214 Right of charge-back or refund - liability of collecting bank - return of item
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(a) If a collecting bank has made provisional settlement with its customer for an item and fails by reason of dishonor, suspension of payments by a bank, or otherwise to receive a settlement for the item which is or becomes final, the bank may revoke the settlement given by it, c…
Colo. Rev. Stat. § 4-4-215 Final payment of item by payor bank - when provisional debits and credits become final - when certain credits become available for withdrawal
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(a) An item is finally paid by a payor bank when the bank has first done any of the following: (1) Paid the item in cash; (2) Settled for the item without having a right to revoke the settlement under statute, clearing-house rule, or agreement; or (3) Made a provisional settlemen…
Colo. Rev. Stat. § 4-4-216 Insolvency and preference
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(a) If an item is in or comes into the possession of a payor or collecting bank that suspends payment and the item has not been finally paid, the item must be returned by the receiver, trustee, or agent in charge of the closed bank to the presenting bank or the closed bank's cust…
Colo. Rev. Stat. § 4-4-301 Deferred posting - recovery of payment by return of items - time of dishonor - return of items by payor bank
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(a) If a payor bank settles for a demand item other than a documentary draft presented otherwise than for immediate payment over the counter before midnight of the banking day of receipt, the payor bank may revoke the settlement and recover the settlement if, before it has made f…
Colo. Rev. Stat. § 4-4-302 Payor bank's responsibility for late return of item
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(a) If an item is presented to and received by a payor bank, the bank is accountable for the amount of: (1) A demand item, other than a documentary draft, whether properly payable or not, if the bank, in any case in which it is not also the depositary bank, retains the item beyon…
Colo. Rev. Stat. § 4-4-303 When items subject to notice, stop-payment order, legal process, or setoff - order in which items may be charged or certified
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(a) Any knowledge, notice, or stop-payment order received by, legal process served upon, or setoff exercised by a payor bank comes too late to terminate, suspend, or modify the bank’s right or duty to pay an item or to charge its customer’s account for the item if the knowledge, …
Colo. Rev. Stat. § 4-4-401 When bank may charge customer's account
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(a) A bank may charge against the account of a customer an item that is properly payable from that account even though the charge creates an overdraft. An item is properly payable if it is authorized by the customer and is in accordance with any agreement between the customer and…
Colo. Rev. Stat. § 4-4-402 Bank’s liability to customer for wrongful dishonor - time of determining insufficiency of account
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(a) Except as otherwise provided in this article, a payor bank wrongfully dishonors an item if it dishonors an item that is properly payable, but a bank may dishonor an item that would create an overdraft unless it has agreed to pay the overdraft. (b) A payor bank is liable to it…
Colo. Rev. Stat. § 4-4-403 Customer's right to stop payment - burden of proof of loss
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(a) A customer or any person authorized to draw on the account if there is more than one person may stop payment of any item drawn on the customer's account or close the account by an order to the bank describing the item or account with reasonable certainty received at a time an…
Colo. Rev. Stat. § 4-4-404 Bank not obligated to pay check more than six months old
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A bank is under no obligation to a customer having a checking account to pay a check, other than a certified check, which is presented more than six months after its date, but it may charge its customer's account for a payment made thereafter in good faith. Source: L. 94: Entire …
Colo. Rev. Stat. § 4-4-405 Death or incompetence of customer
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(a) A payor or collecting bank's authority to accept, pay, or collect an item or to account for proceeds of its collection, if otherwise effective, is not rendered ineffective by incompetence of a customer of either bank existing at the time the item is issued or its collection i…
Colo. Rev. Stat. § 4-4-406 Customer’s duty to discover and report unauthorized signature or alteration
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(a) A bank that sends or makes available to a customer a statement of account showing payment of items for the account shall either return or make available to the customer the items paid or provide information in the statement of account sufficient to allow the customer reasonab…
Colo. Rev. Stat. § 4-4-407 Payor bank's right to subrogation on improper payment
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If a payor bank has paid an item over the order of the drawer or maker to stop payment, or after an account has been closed, or otherwise under circumstances giving a basis for objection by the drawer or maker, to prevent unjust enrichment and only to the extent necessary to prev…
Colo. Rev. Stat. § 4-4-501 Handling of documentary drafts - duty to send for presentment and to notify customer of dishonor
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A bank that takes a documentary draft for collection shall present or send the draft and accompanying documents for presentment and, upon learning that the draft has not been paid or accepted in due course, shall seasonably notify its customer of the fact even though it may have …
Colo. Rev. Stat. § 4-4-502 Presentment of on arrival drafts
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If a draft or the relevant instructions require presentment on arrival, when goods arrive, or the like, the collecting bank need not present until in its judgment a reasonable time for arrival of the goods has expired. Refusal to pay or accept because the goods have not arrived i…
Colo. Rev. Stat. § 4-4-503 Responsibility of presenting bank for documents and goods - report of reason for dishonor - referee in case of need
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(1) Unless otherwise instructed and except as provided in article 5 of this title, a bank presenting a documentary draft: (1) Must deliver the documents to the drawee on acceptance of the draft if it is payable more than three days after presentment - otherwise only on payment; a…
Colo. Rev. Stat. § 4-4-504 Privilege of presenting bank to deal with goods - security interest for expenses
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(a) A presenting bank that, following the dishonor of a documentary draft, has seasonably requested instructions but does not receive them within a reasonable time may store, sell, or otherwise deal with the goods in any reasonable manner. (b) For its reasonable expenses incurred…
Colo. Rev. Stat. § 4-5-101 Short title
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This article may be cited as Uniform Commercial Code - Letters of Credit. Source: L. 96: Entire article R&RE, p. 191, � 1, effective July 1. Editor's note: This section is similar to former � 4-5-101 as it existed prior to 1996.
Colo. Rev. Stat. § 4-5-102 Definitions
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(a) In this article: (1) Adviser means a person who, at the request of the issuer, a confirmer, or another adviser, notifies or requests another adviser to notify the beneficiary that a letter of credit has been issued, confirmed, or amended. (2) Applicant means a person at whose…
Colo. Rev. Stat. § 4-5-103 Scope
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(a) This article applies to letters of credit and to certain rights and obligations arising out of transactions involving letters of credit. (b) The statement of a rule in this article does not by itself require, imply, or negate application of the same or a different rule to a s…
Colo. Rev. Stat. § 4-5-104 Formal requirements
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A letter of credit, confirmation, advice, transfer, amendment, or cancellation may be issued in any form that is a signed record. Source: L. 96: Entire article R&RE, p. 194, � 1, effective July 1. L. 2023: Entire section amended, (SB 23-090), ch. 136, p. 534, � 33, effective Augu…
Colo. Rev. Stat. § 4-5-105 Consideration
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Consideration is not required to issue, amend, transfer, or cancel a letter of credit, advice, or confirmation. Source: L. 96: Entire article R&RE, p. 194, � 1, effective July 1. Editor's note: This section is similar to former � 4-5-105 as it existed prior to 1996.
Colo. Rev. Stat. § 4-5-106 Issuance, amendment, cancellation, and duration
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(a) A letter of credit is issued and becomes enforceable according to its terms against the issuer when the issuer sends or otherwise transmits it to the person requested to advise or to the beneficiary. A letter of credit is revocable only if it so provides. (b) After a letter o…
Colo. Rev. Stat. § 4-5-107 Confirmer, nominated person, and adviser
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(a) A confirmer is directly obligated on a letter of credit and has the rights and obligations of an issuer to the extent of its confirmation. The confirmer also has rights against and obligations to the issuer as if the issuer were an applicant and the confirmer had issued the l…
Colo. Rev. Stat. § 4-5-108 Issuer's rights and obligations
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(a) Except as otherwise provided in section 4-5-109, an issuer shall honor a presentation that, as determined by the standard practice referred to in subsection (e) of this section, appears on its face strictly to comply with the terms and conditions of the letter of credit. Exce…
Colo. Rev. Stat. § 4-5-109 Fraud and forgery
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(a) If a presentation is made that appears on its face strictly to comply with the terms and conditions of the letter of credit, but a required document is forged or materially fraudulent, or honor of the presentation would facilitate a material fraud by the beneficiary on the is…
Colo. Rev. Stat. § 4-5-110 Warranties
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(a) If its presentation is honored, the beneficiary warrants: (1) To the issuer, any other person to whom presentation is made, and the applicant that there is no fraud or forgery of the kind described in section 4-5-109 (a); and (2) To the applicant that the drawing does not vio…
Colo. Rev. Stat. § 4-5-111 Remedies
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(a) If an issuer wrongfully dishonors or repudiates its obligation to pay money under a letter of credit before presentation, the beneficiary, successor, or nominated person presenting on its own behalf may recover from the issuer the amount that is the subject of the dishonor or…
Colo. Rev. Stat. § 4-5-112 Transfer of letter of credit
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(a) Except as otherwise provided in section 4-5-113, unless a letter of credit provides that it is transferable, the right of a beneficiary to draw or otherwise demand performance under a letter of credit may not be transferred. (b) Even if a letter of credit provides that it is …
Colo. Rev. Stat. § 4-5-113 Transfer by operation of law
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(a) A successor of a beneficiary may consent to amendments, sign and present documents, and receive payment or other items of value in the name of the beneficiary without disclosing its status as a successor. (b) A successor of a beneficiary may consent to amendments, sign and pr…
Colo. Rev. Stat. § 4-5-114 Assignment of proceeds
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(a) In this section, proceeds of a letter of credit means the cash, check, accepted draft, or other item of value paid or delivered upon honor or giving of value by the issuer or any nominated person under the letter of credit. The term does not include a beneficiary's drawing ri…