Colorado § 11-111-111 Recoupment or set off

Colorado Statutes

§ 11-111-111 — Recoupment or set off

Colorado·Title 11 Financial·Art. Uniform Special Deposits Act

(1)Except as provided in subsection (2) or

(3)of this section, a bank may not exercise a right of recoupment or set off against a special deposit.

(2)An account agreement may authorize the bank to debit the special deposit:

(a)When the bank becomes obligated to pay a beneficiary, in an amount that does not exceed the amount necessary to discharge the obligation;

(b)For a fee assessed by the bank that relates to an overdraft in the special deposit account;

(c)For costs incurred by the bank that relate directly to the special deposit; or

(d)To reverse an earlier credit posted by the bank to the balance of the special deposit account, if the reversal occurs under an event or circumstance warranted under other law of this state governing mistake and restitution.

(3)The ba

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(1) Except as provided in subsection (2) or
(3) of this section, a bank may not exercise a right of recoupment or set off against
a special deposit.

(2) An account agreement may authorize the bank to debit the special
deposit:

(a) When the bank becomes obligated to pay a beneficiary, in an amount that
does not exceed the amount necessary to discharge the obligation;

(b) For a fee assessed by the bank that relates to an overdraft in the special
deposit account;

(c) For costs incurred by the bank that relate directly to the special deposit;
or

(d) To reverse an earlier credit posted by the bank to the balance of the
special deposit account, if the reversal occurs under an event or circumstance
warranted under other law of this state governing mistake and restitution.

(3) The bank holding a special deposit may exercise a right of recoupment or
set off against an obligation to pay a beneficiary, even if the bank funds payment
from the special deposit.

Colorado § 11-111-111 (Recoupment or set off) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.