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Can you summarize CORS 4-4-401?
RELATIONSHIP BETWEEN PAYOR BANK AND ITS CUSTOMER > When bank may charge customer's account.
Short Summary
This legal document, part of the Colorado Revised Statutes, specifically falls under the Uniform Commercial Code and governs the relationship between a payor bank and its customer. It outlines the circumstances under which a bank may charge a customer’s account, including the authorization of payments and adherence to any agreements between the bank and the customer. The document also addresses the liability of customers for overdrafts, the charging of postdated checks, and the bank’s responsibility in cases of forged signatures or endorsements. It further discusses the bank’s ability to charge the customer’s account based on the original or completed terms of an altered item, as long as the bank is acting in good faith and without notice of improper completion. Overall, this document provides guidelines and regulations for banks and their customers regarding the charging of customer accounts and related matters.
Whom does it apply to?
Banks and their customers
What does it govern?
Relationship between payor bank and its customer
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
The document does not specify any penalties.
Jurisdiction
Colorado