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

Colorado Statutes

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

Colorado·Title 04 Uniform·Art. Bank Deposits and Collections

(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

Free access — add to your briefcase to read the full text and ask questions with AI

(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.

Colorado § 4-4-302 (Payor bank's responsibility for late return of item) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.