C.R.S. Section 4-4.5-204
Refund of payment and duty of customer to report with respect to unauthorized payment order

(a)

If a receiving bank accepts a payment order issued in the name of its customer as sender which is (i) not authorized and not effective as the order of the customer under section 4-4.5-202, or (ii) not enforceable, in whole or in part, against the customer under section 4-4.5-203, the bank shall refund any payment of the payment order received from the customer to the extent the bank is not entitled to enforce payment and shall pay interest on the refundable amount calculated from the date the bank received payment to the date of the refund. However, the customer is not entitled to interest from the bank on the amount to be refunded if the customer fails to exercise ordinary care to determine that the order was not authorized by the customer and to notify the bank of the relevant facts within a reasonable time not exceeding ninety days after the date the customer received notification from the bank that the order was accepted or that the customer’s account was debited with respect to the order. The bank is not entitled to any recovery from the customer on account of a failure by the customer to give notification as stated in this section.

(b)

Reasonable time under subsection (a) of this section may be fixed by agreement as stated in section 4-1-205, but the obligation of a receiving bank to refund payment as stated in subsection (a) of this section may not otherwise be varied by agreement.

Source: Section 4-4.5-204 — Refund of payment and duty of customer to report with respect to unauthorized payment order, https://leg.­colorado.­gov/sites/default/files/images/olls/crs2023-title-04.­pdf (accessed Oct. 20, 2023).

4‑4.5‑101
Short title 4‑4.5‑102
Subject matter 4‑4.5‑103
Payment order - definitions 4‑4.5‑104
Funds transfer - definitions 4‑4.5‑105
Other definitions 4‑4.5‑106
Time payment order is received 4‑4.5‑107
Federal reserve regulations and operating circulars 4‑4.5‑108
Relationship to federal “Electronic Fund Transfer Act of 1978” 4‑4.5‑201
Security procedure 4‑4.5‑202
Authorized and verified payment orders 4‑4.5‑203
Unenforceability of certain verified payment orders 4‑4.5‑204
Refund of payment and duty of customer to report with respect to unauthorized payment order 4‑4.5‑205
Erroneous payment orders 4‑4.5‑206
Transmission of payment order through funds-transfer or other communication system 4‑4.5‑207
Misdescription of beneficiary 4‑4.5‑208
Misdescription of intermediary bank or beneficiary’s bank 4‑4.5‑209
Acceptance of payment order 4‑4.5‑210
Rejection of payment order 4‑4.5‑211
Cancellation and amendment of payment order 4‑4.5‑212
Liability and duty of receiving bank regarding unaccepted payment order 4‑4.5‑301
Execution and execution date 4‑4.5‑302
Obligations of receiving bank in execution of payment order 4‑4.5‑303
Erroneous execution of payment order 4‑4.5‑304
Duty of sender to report erroneously executed payment order 4‑4.5‑305
Liability for late or improper execution or failure to execute payment order 4‑4.5‑401
Payment date 4‑4.5‑402
Obligation of sender to pay receiving bank 4‑4.5‑403
Payment by sender to receiving bank 4‑4.5‑404
Obligation of beneficiary’s bank to pay and give notice to beneficiary 4‑4.5‑405
Payment by beneficiary’s bank to beneficiary 4‑4.5‑406
Payment by originator to beneficiary 4‑4.5‑501
Variation by agreement and effect of funds-transfer system rule 4‑4.5‑502
Creditor process served on receiving bank 4‑4.5‑503
Injunction or restraining order with respect to funds transfer 4‑4.5‑504
Order in which items and payment orders may be charged to account 4‑4.5‑505
Preclusions of objection to debit of customer’s account 4‑4.5‑506
Rate of interest 4‑4.5‑507
Choice of law
Green check means up to date. Up to date

Current through Fall 2024

§ 4-4.5-204’s source at colorado​.gov