§ 11-111-107 — Payment to beneficiary by bank

Colorado § 11-111-107

• Jurisdiction: Colorado
• Title 11: Financial
• Art.: Uniform Special Deposits Act

Text

(1) Unless the account
agreement provides otherwise, the bank is obligated to pay a beneficiary if there
are sufficient actually and finally collected funds in the balance of the special
deposit.

(2) Except as provided in subsection (3) of this section, the obligation to pay
the beneficiary is excused if the funds available in the special deposit are
insufficient to cover such payment.

(3) Unless the account agreement provides otherwise, if the funds available
in the special deposit are insufficient to cover an obligation to pay a beneficiary, a
beneficiary may elect to be paid the funds that are available or, if there is more than
one beneficiary, a pro rata share of the funds available. Payment to the beneficiary
making the election under this subsection (3) discharges the bank's obligation to
pay a beneficiary and does not constitute an accord and satisfaction with respect to
another person obligated to the beneficiary.

(4) Unless the account agreement provides otherwise, the obligation of the
bank obligated to pay a beneficiary is immediately due and payable.

(5) The bank may discharge its obligation under this section by:

(a) Crediting another transaction account of the beneficiary; or

(b) Taking other action that:

(I) Is permitted under the account agreement for the bank to obtain a
discharge; or

(II) Otherwise would constitute a discharge under law.

(6) If the bank obligated to pay a beneficiary has incurred an obligation to
discharge the obligation of another person, the obligation of the other person is
discharged if action by the bank under subsection (5) of this section would
constitute a discharge of the obligation of the other person under law that
determines whether an obligation is satisfied.

Legislative History

Source: L. 2024: Entire article added, (HB 24-1232), ch. 200, p. 1225, � 1, effective August 7.