C.R.S. Section 4-4.5-406
Payment by originator to beneficiary; discharge of underlying obligation

(a)

Subject to sections 4-4.5-211(e), 4-4.5-405(d), and 4-4.5-405(e), the originator of a funds transfer pays the beneficiary of the originator’s payment order (i) at the time a payment order for the benefit of the beneficiary is accepted by the beneficiary’s bank in the funds transfer and (ii) in an amount equal to the amount of the order accepted by the beneficiary’s bank, but not more than the amount of the originator’s order.

(b)

If payment under subsection (a) of this section is made to satisfy an obligation, the obligation is discharged to the same extent discharge would result from payment to the beneficiary of the same amount in money, unless (i) the payment under subsection (a) of this section was made by a means prohibited by the contract of the beneficiary with respect to the obligation, (ii) the beneficiary, within a reasonable time after receiving notice of receipt of the order by the beneficiary’s bank, notified the originator of the beneficiary’s refusal of the payment, (iii) funds with respect to the order were not withdrawn by the beneficiary or applied to a debt of the beneficiary, and (iv) the beneficiary would suffer a loss that could reasonably have been avoided if payment had been made by a means complying with the contract. If payment by the originator does not result in discharge under this section, the originator is subrogated to the rights of the beneficiary to receive payment from the beneficiary’s bank under section 4-4.5-404 (a).

(c)

For the purpose of determining whether discharge of an obligation occurs under subsection (b) of this section, if the beneficiary’s bank accepts a payment order in an amount equal to the amount of the originator’s payment order less charges of one or more receiving banks in the funds transfer, payment to the beneficiary is deemed to be in the amount of the originator’s order unless upon demand by the beneficiary the originator does not pay the beneficiary the amount of the deducted charges.

(d)

Rights of the originator or of the beneficiary of a funds transfer under this section may be varied only by agreement of the originator and the beneficiary.

Source: Section 4-4.5-406 — Payment by originator to beneficiary; discharge of underlying obligation, 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

§ 4-4.5-406’s source at colorado​.gov