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Can you summarize 4 CORS Article 4.5?
Uniform Commercial Code > FUNDS TRANSFERS
Short Summary
These legal documents, governed by Article 4A of the Colorado Revised Statutes under the Uniform Commercial Code, establish precise and detailed rules for funds transfers. They define funds transfers as specialized methods of payment, commonly known as wholesale wire transfers. The documents provide definitions for terms such as ‘payment order’ and ‘funds transfer’ and aim to assign responsibility, define behavioral norms, allocate risks, and establish limits on liability in funds transfers. They ensure certainty for the parties involved, allowing them to predict and manage risks, adjust operational and security procedures, and appropriately price funds transfer services. The documents also pertain to payment orders in funds transfers, defining them as instructions from a sender to a receiving bank to pay a fixed or determinable amount of money to a beneficiary. They clarify the process of transmitting payment orders and provide definitions for related terms. Additionally, the documents govern the time of receipt of payment orders and communications, allowing receiving banks to fix cut-off times. They also address funds transfers through Federal Reserve Banks, stating that their regulations and circulars supersede any inconsistent provisions. The documents further highlight that funds transfers not covered by the federal ‘Electronic Fund Transfer Act of 1978’ are regulated under the Colorado Revised Statutes. Overall, these legal documents provide a comprehensive framework and definitions for funds transfers in the state of Colorado.
Whom does it apply to?
Receiving banks, customers, originator's banks, beneficiary's banks
What does it govern?
Funds transfers
What are exemptions?
The federal 'Electronic Fund Transfer Act of 1978' covers funds transfers not covered by this document.
What are the Penalties?
No specific exemptions or penalties are mentioned in these documents.
Jurisdiction
Colorado