Colorado § 4-4.5-210 Rejection of payment order

Colorado Statutes

§ 4-4.5-210 — Rejection of payment order

Colorado § 4-4.5-210

Title 04Uniform

Art.Funds Transfers

This text of Colorado § 4-4.5-210 (Rejection of payment order) 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. § 4-4.5-210 (2026).

Text

(a)A payment order is rejected by the receiving bank by a notice of rejection transmitted to the sender orally or in a record. A notice of rejection need not use any particular words and is sufficient if it indicates that the receiving bank is rejecting the order or will not execute or pay the order. Rejection is effective when the notice is given if transmission is by a means that is reasonable in the circumstances. If notice of rejection is given by a means that is not reasonable, rejection is effective when the notice is received. If an agreement of the sender and receiving bank establishes the means to be used to reject a payment order, (i) any means complying with the agreement is reasonable and (ii) any means not complying is not reasonable unless no significant delay in r

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(a) A payment order is rejected by
the receiving bank by a notice of rejection transmitted to the sender orally or in a
record. A notice of rejection need not use any particular words and is sufficient if it
indicates that the receiving bank is rejecting the order or will not execute or pay the
order. Rejection is effective when the notice is given if transmission is by a means
that is reasonable in the circumstances. If notice of rejection is given by a means
that is not reasonable, rejection is effective when the notice is received. If an
agreement of the sender and receiving bank establishes the means to be used to
reject a payment order, (i) any means complying with the agreement is reasonable
and (ii) any means not complying is not reasonable unless no significant delay in
receipt of the notice resulted from the use of the noncomplying means.

(b) This subsection (b) applies if a receiving bank other than the beneficiary's
bank fails to execute a payment order despite the existence on the execution date
of a withdrawable credit balance in an authorized account of the sender sufficient
to cover the order. If the sender does not receive notice of rejection of the order on
the execution 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 execution date to the earlier of the day the order
is canceled pursuant to section 4-4.5-211 (d) or the day the sender receives notice
or learns that the order was not executed, counting the final day of the period as an
elapsed day. If the withdrawable credit balance during that period falls below the
amount of the order, the amount of interest is reduced accordingly.

(c) If a receiving bank suspends payments, all unaccepted payment orders
issued to it are deemed rejected at the time the bank suspends payments.

(d) Acceptance of a payment order precludes a later rejection of the order.
Rejection of a payment order precludes a later acceptance of the order.

Legislative History

Source: L. 90: Entire article added, p. 351, � 1, effective January 1, 1991. L. 2023: (a) amended, (SB 23-090), ch. 136, p. 533, � 30, effective August 7.