C.R.S. Section 4-3-404
Impostors; fictitious payees

(a)

If an impostor, by use of the mails or otherwise, induces the issuer of an instrument to issue the instrument to the impostor, or to a person acting in concert with the impostor, by impersonating the payee of the instrument or a person authorized to act for the payee, an indorsement of the instrument by any person in the name of the payee is effective as the indorsement of the payee in favor of a person who, in good faith, pays the instrument or takes it for value or for collection.

(b)

If (i) a person whose intent determines to whom an instrument is payable (section 4-3-110 (a) or (b)) does not intend the person identified as payee to have any interest in the instrument, or (ii) the person identified as payee of an instrument is a fictitious person, the following rules apply until the instrument is negotiated by special indorsement:

(1)

Any person in possession of the instrument is its holder.

(2)

An indorsement by any person in the name of the payee stated in the instrument is effective as the indorsement of the payee in favor of a person who, in good faith, pays the instrument or takes it for value or for collection.

(c)

Under subsection (a) or (b) of this section, an indorsement is made in the name of a payee if (i) it is made in a name substantially similar to that of the payee or (ii) the instrument, whether or not indorsed, is deposited in a depositary bank to an account in a name substantially similar to that of the payee.

(d)

With respect to an instrument to which subsection (a) or (b) of this section applies, if a person paying the instrument or taking it for value or for collection fails to exercise ordinary care in paying or taking the instrument and that failure contributes to loss resulting from payment of the instrument, the person bearing the loss may recover from the person failing to exercise ordinary care to the extent the failure to exercise ordinary care contributed to the loss.

Source: Section 4-3-404 — Impostors; fictitious payees, https://leg.­colorado.­gov/sites/default/files/images/olls/crs2023-title-04.­pdf (accessed Oct. 20, 2023).

4‑3‑101
Short title 4‑3‑102
Subject matter 4‑3‑103
Definitions 4‑3‑104
Negotiable instrument 4‑3‑105
Issue of instrument 4‑3‑106
Unconditional promise or order 4‑3‑107
Instrument payable in foreign money 4‑3‑108
Payable on demand or at definite time 4‑3‑109
Payable to bearer or to order 4‑3‑110
Identification of person to whom instrument is payable 4‑3‑111
Place of payment 4‑3‑112
Interest 4‑3‑113
Date of instrument 4‑3‑114
Contradictory terms of instrument 4‑3‑115
Incomplete instrument 4‑3‑116
Joint and several liability 4‑3‑117
Other agreements affecting instrument 4‑3‑118
Statute of limitations 4‑3‑119
Notice of right to defend action 4‑3‑201
Negotiation 4‑3‑202
Negotiation subject to rescission 4‑3‑203
Transfer of instrument 4‑3‑204
Indorsement 4‑3‑205
Special indorsement 4‑3‑206
Restrictive indorsement 4‑3‑207
Reacquisition 4‑3‑301
Person entitled to enforce instrument 4‑3‑302
Holder in due course 4‑3‑303
Value and consideration 4‑3‑304
Overdue instrument 4‑3‑305
Defenses and claims in recoupment 4‑3‑306
Claims to an instrument 4‑3‑307
Notice of breach of fiduciary duty 4‑3‑308
Proof of signatures and status as holder in due course 4‑3‑309
Enforcement of lost, destroyed, or stolen instrument 4‑3‑310
Effect of instrument on obligation for which taken 4‑3‑311
Accord and satisfaction by use of instrument 4‑3‑312
Lost, destroyed, or stolen cashier’s check, teller’s check, or certified check 4‑3‑401
Signature necessary for liability on instrument 4‑3‑402
Signature by representative 4‑3‑403
Unauthorized signature 4‑3‑404
Impostors 4‑3‑405
Employer’s responsibility for fraudulent indorsement by employee 4‑3‑406
Negligence contributing to forged signature or alteration of instrument 4‑3‑407
Alteration 4‑3‑408
Drawee not liable on unaccepted draft 4‑3‑409
Acceptance of draft 4‑3‑410
Acceptance of varying draft 4‑3‑411
Refusal to pay cashier’s checks, teller’s checks, and certified checks 4‑3‑412
Obligation of issuer of note or cashier’s check 4‑3‑413
Obligation of acceptor 4‑3‑414
Obligation of drawer 4‑3‑415
Obligation of indorser 4‑3‑416
Transfer warranties 4‑3‑417
Presentment warranties 4‑3‑418
Payment or acceptance by mistake 4‑3‑419
Instruments signed for accommodation 4‑3‑420
Conversion of instrument 4‑3‑501
Presentment 4‑3‑502
Dishonor 4‑3‑503
Notice of dishonor 4‑3‑504
Excused presentment and notice of dishonor 4‑3‑505
Evidence of dishonor 4‑3‑506
Recording credit card or social security numbers prohibited 4‑3‑601
Discharge and effect of discharge 4‑3‑602
Payment 4‑3‑603
Tender of payment 4‑3‑604
Discharge by cancellation or renunciation 4‑3‑605
Discharge of indorsers and accommodation parties
Green check means up to date. Up to date

Current through Fall 2024

§ 4-3-404’s source at colorado​.gov