Colorado § 4-4.5-203 Unenforceability of certain verified payment orders

Colorado Statutes

§ 4-4.5-203 — Unenforceability of certain verified payment orders

Colorado § 4-4.5-203

Title 04Uniform

Art.Funds Transfers

This text of Colorado § 4-4.5-203 (Unenforceability of certain verified payment orders) 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. § 4-4.5-203 (2026).

Text

(a)If an accepted payment order is not, under section 4-4.5-202 (a), an authorized order of a customer identified as sender, but is effective as an order of the customer pursuant to section 4-4.5-202 (b), the following rules apply:

(1)By express agreement evidenced by a record, the receiving bank may limit the extent to which it is entitled to enforce or retain payment of the payment order.

(2)The receiving bank is not entitled to enforce or retain payment of the payment order if the customer proves that the order was not caused, directly or indirectly, by a person (i) entrusted at any time with duties to act for the customer with respect to payment orders or the security procedure, or (ii) who obtained access to transmitting facilities of the customer or who obtained, from a

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(a) If an
accepted payment order is not, under section 4-4.5-202 (a), an authorized order of a
customer identified as sender, but is effective as an order of the customer pursuant
to section 4-4.5-202 (b), the following rules apply:

(1) By express agreement evidenced by a record, the receiving bank may
limit the extent to which it is entitled to enforce or retain payment of the payment
order.

(2) The receiving bank is not entitled to enforce or retain payment of the
payment order if the customer proves that the order was not caused, directly or
indirectly, by a person (i) entrusted at any time with duties to act for the customer
with respect to payment orders or the security procedure, or (ii) who obtained
access to transmitting facilities of the customer or who obtained, from a source
controlled by the customer and without authority of the receiving bank, information
facilitating breach of the security procedure, regardless of how the information was
obtained or whether the customer was at fault. Information includes any access
device, computer software, or the like.

(b) This section applies to amendments of payment orders to the same
extent it applies to payment orders.

Legislative History

Source: L. 90: Entire article added, p. 346, � 1, effective January 1, 1991. L. 2023: (a)(1) amended, (SB 23-090), ch. 136, p. 533, � 27, effective August 7.