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Can you summarize CORS 4-4-301?
COLLECTION OF ITEMS - PAYOR BANKS > Deferred posting - recovery of payment by return of items - time of dishonor - return of items by payor bank.
Short Summary
This legal document, part of the Colorado Revised Statutes under the Uniform Commercial Code, pertains to the collection of items by payor banks. It outlines the circumstances under which a payor bank can settle for a demand item and subsequently revoke the settlement to recover the payment. The payor bank can revoke the settlement by either returning the item or sending written notice of dishonor or nonpayment if the item is unavailable for return. The document also specifies the time limits for action and the definition of when an item is considered ‘returned’. Overall, this document provides guidelines for payor banks regarding the recovery of payment through the return of items.
Whom does it apply to?
Payor banks
What does it govern?
Recovery of payment by return of items
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Colorado