Colorado § 4-5-111 Remedies

Colorado Statutes

§ 4-5-111 — Remedies

Colorado § 4-5-111

Title 04Uniform

Art.Letters of Credit

This text of Colorado § 4-5-111 (Remedies) 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. § 4-5-111 (2026).

Text

(a)If an issuer wrongfully dishonors or repudiates its obligation to pay money under a letter of credit before presentation, the beneficiary, successor, or nominated person presenting on its own behalf may recover from the issuer the amount that is the subject of the dishonor or repudiation. If the issuer's obligation under the letter of credit is not for the payment of money, the claimant may obtain specific performance or, at the claimant's election, recover an amount equal to the value of performance from the issuer. In either case, the claimant may also recover incidental but not consequential damages. The claimant is not obligated to take action to avoid damages that might be due from the issuer under this subsection (a). If, although not obligated to do so, the claimant av

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(a) If an issuer wrongfully dishonors or repudiates its
obligation to pay money under a letter of credit before presentation, the
beneficiary, successor, or nominated person presenting on its own behalf may
recover from the issuer the amount that is the subject of the dishonor or
repudiation. If the issuer's obligation under the letter of credit is not for the
payment of money, the claimant may obtain specific performance or, at the
claimant's election, recover an amount equal to the value of performance from the
issuer. In either case, the claimant may also recover incidental but not
consequential damages. The claimant is not obligated to take action to avoid
damages that might be due from the issuer under this subsection (a). If, although
not obligated to do so, the claimant avoids damages, the claimant's recovery from
the issuer must be reduced by the amount of damages avoided. The issuer has the
burden of proving the amount of damages avoided. In the case of repudiation the
claimant need not present any document.

(b) If an issuer wrongfully dishonors a draft or demand presented under a
letter of credit or honors a draft or demand in breach of its obligation to the
applicant, the applicant may recover damages resulting from the breach, including
incidental but not consequential damages, less any amount saved as a result of the
breach.

(c) If an adviser or nominated person other than a confirmer breaches an
obligation under this article or an issuer breaches an obligation not covered in
subsection (a) or (b) of this section, a person to whom the obligation is owed may
recover damages resulting from the breach, including incidental but not
consequential damages, less any amount saved as a result of the breach. To the
extent of the confirmation, a confirmer has the liability of an issuer specified in this
subsection (c) and subsections (a) and (b) of this section.

(d) An issuer, nominated person, or adviser who is found liable under
subsection (a), (b), or (c) of this section shall pay interest on the amount owed
thereunder from the date of wrongful dishonor or other appropriate date.

(e) Reasonable attorney's fees and other expenses of litigation must be
awarded to the prevailing party in an action in which a remedy is sought under this
article.

(f) Damages that would otherwise be payable by a party for breach of an
obligation under this article may be liquidated by agreement or undertaking, but
only in an amount or by a formula that is reasonable in light of the harm anticipated.