C.R.S. Section 4-4.5-403
Payment by sender to receiving bank

(a)

Payment of the sender’s obligation under section 4-4.5-402 to pay the receiving bank occurs as follows:

(1)

If the sender is a bank, payment occurs when the receiving bank receives final settlement of the obligation through a federal reserve bank or through a funds-transfer system.

(2)

If the sender is a bank and the sender (i) credited an account of the receiving bank with the sender, or (ii) caused an account of the receiving bank in another bank to be credited, payment occurs when the credit is withdrawn or, if not withdrawn, at midnight of the day on which the credit is withdrawable and the receiving bank learns of that fact.

(3)

If the receiving bank debits an account of the sender with the receiving bank, payment occurs when the debit is made to the extent the debit is covered by a withdrawable credit balance in the account.

(b)

If the sender and receiving bank are members of a funds-transfer system that nets obligations multilaterally among participants, the receiving bank receives final settlement when settlement is complete in accordance with the rules of the system. The obligation of the sender to pay the amount of a payment order transmitted through the funds-transfer system may be satisfied, to the extent permitted by the rules of the system, by setting off and applying against the sender’s obligation the right of the sender to receive payment from the receiving bank of the amount of any other payment order transmitted to the sender by the receiving bank through the funds-transfer system. The aggregate balance of obligations owed by each sender to each receiving bank in the funds-transfer system may be satisfied, to the extent permitted by the rules of the system, by setting off and applying against that balance the aggregate balance of obligations owed to the sender by other members of the system. The aggregate balance is determined after the right of setoff stated in the second sentence of this subsection (b) has been exercised.

(c)

If two banks transmit payment orders to each other under an agreement that settlement of the obligations of each bank to the other under section 4-4.5-402 will be made at the end of the day or other period, the total amount owed with respect to all orders transmitted by one bank shall be set off against the total amount owed with respect to all orders transmitted by the other bank. To the extent of the setoff, each bank has made payment to the other.

(d)

In a case not covered by subsection (a) of this section, the time when payment of the sender’s obligation under section 4-4.5-402(b) or 4-4.5-402(c) occurs is governed by applicable principles of law that determine when an obligation is satisfied.

Source: Section 4-4.5-403 — Payment by sender to receiving bank, 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

§ 4-4.5-403’s source at colorado​.gov