Colorado § 4-2-506 Rights of financing agency

Colorado Statutes

§ 4-2-506 — Rights of financing agency

Colorado § 4-2-506

Title 04Uniform

Art.Sales

This text of Colorado § 4-2-506 (Rights of financing agency) is published on Counsel Stack Legal Research, covering Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Colo. Rev. Stat. § 4-2-506 (2026).

Text

(1)A financing agency by paying or purchasing for value a draft which relates to a shipment of goods acquires to the extent of the payment or purchase and in addition to its own rights under the draft and any document of title securing it, any rights of the shipper in the goods including the right to stop delivery and the shipper's right to have the draft honored by the buyer.

(2)The right to reimbursement of a financing agency that has in good faith honored or purchased the draft under commitment to or authority from the buyer is not impaired by subsequent discovery of defects with reference to any relevant document that was apparently regular.

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(1) A financing agency by paying or
purchasing for value a draft which relates to a shipment of goods acquires to the
extent of the payment or purchase and in addition to its own rights under the draft
and any document of title securing it, any rights of the shipper in the goods
including the right to stop delivery and the shipper's right to have the draft honored
by the buyer.

(2) The right to reimbursement of a financing agency that has in good faith
honored or purchased the draft under commitment to or authority from the buyer is
not impaired by subsequent discovery of defects with reference to any relevant
document that was apparently regular.