Colorado § 4-4.5-507 Choice of law

Colorado Statutes

§ 4-4.5-507 — Choice of law

Colorado § 4-4.5-507

Title 04Uniform

Art.Funds Transfers

This text of Colorado § 4-4.5-507 (Choice of law) 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. § 4-4.5-507 (2026).

Text

(a)The following rules apply unless the affected parties otherwise agree or subsection (c) of this section applies:

(1)The rights and obligations between the sender of a payment order and the receiving bank are governed by the law of the jurisdiction in which the receiving bank is located.

(2)The rights and obligations between the beneficiary's bank and the beneficiary are governed by the law of the jurisdiction in which the beneficiary's bank is located.

(3)The issue of when payment is made pursuant to a funds transfer by the originator to the beneficiary is governed by the law of the jurisdiction in which the beneficiary's bank is located.

(b)If the parties described in each paragraph of subsection (a) of this section have made an agreement selecting the law of a particu

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(a) The following rules apply unless the affected
parties otherwise agree or subsection (c) of this section applies:

(1) The rights and obligations between the sender of a payment order and the
receiving bank are governed by the law of the jurisdiction in which the receiving
bank is located.

(2) The rights and obligations between the beneficiary's bank and the
beneficiary are governed by the law of the jurisdiction in which the beneficiary's
bank is located.

(3) The issue of when payment is made pursuant to a funds transfer by the
originator to the beneficiary is governed by the law of the jurisdiction in which the
beneficiary's bank is located.

(b) If the parties described in each paragraph of subsection (a) of this section
have made an agreement selecting the law of a particular jurisdiction to govern
rights and obligations between each other, the law of that jurisdiction governs
those rights and obligations, whether or not the payment order or the funds
transfer bears a reasonable relation to that jurisdiction.

(c) A funds-transfer system rule may select the law of a particular
jurisdiction to govern (i) rights and obligations between participating banks with
respect to payment orders transmitted or processed through the system, or (ii) the
rights and obligations of some or all parties to a funds transfer any part of which is
carried out by means of the system. A choice of law made pursuant to clause (i) is
binding on participating banks. A choice of law made pursuant to clause (ii) is
binding on the originator, other sender, or a receiving bank having notice that the
funds-transfer system might be used in the funds transfer and of the choice of law
by the system when the originator, other sender, or receiving bank issued or
accepted a payment order. The beneficiary of a funds transfer is bound by the
choice of law if, when the funds transfer is initiated, the beneficiary has notice that
the funds-transfer system might be used in the funds transfer and of the choice of
law by the system. The law of a jurisdiction selected pursuant to this subsection (c)
may govern, whether or not that law bears a reasonable relation to the matter in
issue.

(d) In the event of inconsistency between an agreement under subsection (b)
of this section and a choice-of-law rule under subsection (c) of this section, the
agreement under subsection (b) of this section prevails.

(e) If a funds transfer is made by use of more than one funds-transfer system
and there is inconsistency between choice-of-law rules of the systems, the matter
in issue is governed by the law of the selected jurisdiction that has the most
significant relationship to the matter in issue.