C.R.S. Section 4-4.5-404
Obligation of beneficiary’s bank to pay and give notice to beneficiary

(a)

Subject to sections 4-4.5-211 (e), 4-4.5-405 (d), and 4-4.5-405 (e), if a beneficiary’s bank accepts a payment order, the bank is obliged to pay the amount of the order to the beneficiary of the order. Payment is due on the payment date of the order, but if acceptance occurs on the payment date after the close of the funds-transfer business day of the bank, payment is due on the next funds-transfer business day. If the bank refuses to pay after demand by the beneficiary and receipt of notice of particular circumstances that will give rise to consequential damages as a result of nonpayment, the beneficiary may recover damages resulting from the refusal to pay to the extent the bank had notice of the damages, unless the bank proves that it did not pay because of a reasonable doubt concerning the right of the beneficiary to payment.

(b)

If a payment order accepted by the beneficiary’s bank instructs payment to an account of the beneficiary, the bank is obliged to notify the beneficiary of receipt of the order before midnight of the next funds-transfer business day following the payment date. If the payment order does not instruct payment to an account of the beneficiary, the bank is required to notify the beneficiary only if notice is required by the order. Notice may be given by first class mail or any other means reasonable in the circumstances. If the bank fails to give the required notice, the bank is obliged to pay interest to the beneficiary on the amount of the payment order from the day notice should have been given until the day the beneficiary learned of receipt of the payment order by the bank. No other damages are recoverable. Reasonable attorney’s fees are also recoverable if demand for interest is made and refused before an action is brought on the claim.

(c)

The right of a beneficiary to receive payment and damages as stated in subsection (a) of this section may not be varied by agreement or a funds-transfer system rule. The right of a beneficiary to be notified as stated in subsection (b) of this section may be varied by agreement of the beneficiary or by a funds-transfer system rule if the beneficiary is notified of the rule before initiation of the funds transfer.

Source: Section 4-4.5-404 — Obligation of beneficiary’s bank to pay and give notice to beneficiary, 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

§ 4-4.5-404’s source at colorado​.gov