C.R.S. Section 4-4.5-402
Obligation of sender to pay receiving bank

(a)

This section is subject to sections 4-4.5-205 and 4-4.5-207.

(b)

With respect to a payment order issued to the beneficiary’s bank, acceptance of the order by the bank obliges the sender to pay the bank the amount of the order, but payment is not due until the payment date of the order.

(c)

This subsection (c) is subject to subsection (e) of this section and to section 4-4.5-303. With respect to a payment order issued to a receiving bank other than the beneficiary’s bank, acceptance of the order by the receiving bank obliges the sender to pay the bank the amount of the sender’s order. Payment by the sender is not due until the execution date of the sender’s order. The obligation of that sender to pay its payment order is excused if the funds transfer is not completed by acceptance by the beneficiary’s bank of a payment order instructing payment to the beneficiary of that sender’s payment order.

(d)

If the sender of a payment order pays the order and was not obliged to pay all or part of the amount paid, the bank receiving payment is obliged to refund payment to the extent the sender was not obliged to pay. Except as provided in sections 4-4.5-204 and 4-4.5-304, interest is payable on the refundable amount from the date of payment.

(e)

If a funds transfer is not completed as stated in subsection (c) of this section and an intermediary bank is obliged to refund payment as stated in subsection (d) of this section but is unable to do so because not permitted by applicable law or because the bank suspends payments, a sender in the funds transfer that executed a payment order in compliance with an instruction, as stated in section 4-4.5-302(a)(1), to route the funds transfer through that intermediary bank is entitled to receive or retain payment from the sender of the payment order that it accepted. The first sender in the funds transfer that issued an instruction requiring routing through that intermediary bank is subrogated to the right of the bank that paid the intermediary bank to refund as stated in subsection (d) of this section.

(f)

The right of the sender of a payment order to be excused from the obligation to pay the order as stated in subsection (c) of this section or to receive refund under subsection (d) of this section may not be varied by agreement.

Source: Section 4-4.5-402 — Obligation of sender to pay receiving bank, https://leg.­colorado.­gov/sites/default/files/images/olls/crs2023-title-04.­pdf (accessed May 26, 2025).

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
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Current through Fall 2025

§ 4-4.5-402. Obligation of sender to pay receiving bank's source at colorado​.gov