§ 4-4-302 — Payor bank's responsibility for late return of item

Colorado § 4-4-302

• Jurisdiction: Colorado
• Title 04: Uniform
• Art.: Bank Deposits and Collections

Text

(a) If an item is
presented to and received by a payor bank, the bank is accountable for the amount
of:

(1) A demand item, other than a documentary draft, whether properly
payable or not, if the bank, in any case in which it is not also the depositary bank,
retains the item beyond midnight of the banking day of receipt without settling for
it or, whether or not it is also the depositary bank, does not pay or return the item or
send notice of dishonor until after its midnight deadline; or

(2) Any other properly payable item unless within the time allowed for
acceptance or payment of that item, the bank either accepts or pays the item or
returns it and accompanying documents.

(b) The liability of a payor bank to pay an item pursuant to subsection (a) of
this section is subject to defenses based on breach of a presentment warranty
(section 4-4-208) or proof that the person seeking enforcement of the liability
presented or transferred the item for the purpose of defrauding the payor bank.

Legislative History

Source: L. 94: Entire article amended with relocations, p. 897, � 2, effective January 1, 1995.