Colorado § 4-3-414 Obligation of drawer

Colorado Statutes

§ 4-3-414 — Obligation of drawer

Colorado § 4-3-414

Title 04Uniform

Art.Negotiable Instruments

This text of Colorado § 4-3-414 (Obligation of drawer) 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. § 4-3-414 (2026).

Text

(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 possession of a holder, or (ii) if the drawer signed an incomplete instrument, according to its terms when completed, to the extent stated in sections 4-3-115 and 4-3-407. The obligation is owed to a person entitled to enforce the draft or to an indorser who paid the draft under section 4-3-415.

(c)If a draft is accepted by a bank, the drawer is discharged, regardless of when or by whom acceptance was obtained.

(d)If a draft is accepted and the acceptor is not a bank, the obligation of the drawer to pay the d

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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 possession of a holder, or (ii) if the drawer signed an incomplete
instrument, according to its terms when completed, to the extent stated in sections
4-3-115 and 4-3-407. The obligation is owed to a person entitled to enforce the
draft or to an indorser who paid the draft under section 4-3-415.

(c) If a draft is accepted by a bank, the drawer is discharged, regardless of
when or by whom acceptance was obtained.

(d) If a draft is accepted and the acceptor is not a bank, the obligation of the
drawer to pay the draft if the draft is dishonored by the acceptor is the same as the
obligation of an indorser under section 4-3-415 (a) and (c).

(e) If a draft states that it is drawn without recourse or otherwise disclaims
liability of the drawer to pay the draft, the drawer is not liable under subsection (b)
of this section to pay the draft if the draft is not a check. A disclaimer of the liability
stated in subsection (b) of this section is not effective if the draft is a check.

(f) If (i) a check is not presented for payment or given to a depositary bank
for collection within thirty days after its date, (ii) the drawee suspends payments
after expiration of the thirty-day period without paying the check, and (iii) because
of the suspension of payments, the drawer is deprived of funds maintained with the
drawee to cover payment of the check, the drawer to the extent deprived of funds
may discharge its obligation to pay the check by assigning to the person entitled to
enforce the check the rights of the drawer against the drawee with respect to the
funds.