§ 4-4.5-209 — Acceptance of payment order

Colorado § 4-4.5-209

• Jurisdiction: Colorado
• Title 04: Uniform
• Art.: Funds Transfers

Text

(a) Subject to subsection (d) of
this section, a receiving bank other than the beneficiary's bank accepts a payment
order when it executes the order.

(b) Subject to subsections (c) and (d) of this section, a beneficiary's bank
accepts a payment order at the earliest of the following times:

(1) When the bank (i) pays the beneficiary as stated in section 4-4.5-405(a) or
4-4.5-405(b), or (ii) notifies the beneficiary of receipt of the order or that the
account of the beneficiary has been credited with respect to the order unless the
notice indicates that the bank is rejecting the order or that funds with respect to
the order may not be withdrawn or used until receipt of payment from the sender of
the order;

(2) When the bank receives payment of the entire amount of the sender's
order pursuant to section 4-4.5-403(a)(1) or 4-4.5-403(a)(2); or

(3) The opening of the next funds-transfer business day of the bank
following the payment date of the order if, at that time, the amount of the sender's
order is fully covered by a withdrawable credit balance in an authorized account of
the sender or the bank has otherwise received full payment from the sender, unless
the order was rejected before that time or is rejected within (i) one hour after that
time, or (ii) one hour after the opening of the next business day of the sender
following the payment date if that time is later. If notice of rejection is received by
the sender after the payment date and the authorized account of the sender does
not bear interest, the bank is obliged to pay interest to the sender on the amount of
the order for the number of days elapsing after the payment date to the day the
sender receives notice or learns that the order was not accepted, counting that day
as an elapsed day. If the withdrawable credit balance during that period falls below
the amount of the order, the amount of interest payable is reduced accordingly.

(c) Acceptance of a payment order cannot occur before the order is received
by the receiving bank. Acceptance does not occur under subsection (b)(2) or (b)(3)
of this section if the beneficiary of the payment order does not have an account
with the receiving bank, the account has been closed, or the receiving bank is not
permitted by law to receive credits for the beneficiary's account.

(d) A payment order issued to the originator's bank cannot be accepted until
the payment date if the bank is the beneficiary's bank, or the execution date if the
bank is not the beneficiary's bank. If the originator's bank executes the originator's
payment order before the execution date or pays the beneficiary of the originator's
payment order before the payment date and the payment order is subsequently
canceled pursuant to section 4-4.5-211(b), the bank may recover from the
beneficiary any payment received to the extent allowed by the law governing
mistake and restitution.

Legislative History

Source: L. 90: Entire article added, p. 350, � 1, effective January 1, 1991.