Source: L. 94: Entire article amended with relocations, p. 886, § 2, effective January 1, 1995.
On the other hand subsection (b)(2) approves sending any item directly to a nonbank payor if authorized by a collecting bank's transferor. This permits special instructions or agreements out of the norm and is consistent with the "chain of command" theory of Section 4-203. However, if a transferor other than the owner of the item, e.g., a prior collecting bank, authorizes a direct sending to a nonbank payor, such transferor assumes responsibility for the propriety or impropriety of such authorization.
Structure Colorado Code
Title 4 - Uniform Commercial Code
Article 4 - Bank Deposits and Collections
Part 2 - Collection of Items - Depositary and Collecting Banks
§ 4-4-202. Responsibility for Collection or Return - When Action Timely
§ 4-4-203. Effect of Instructions
§ 4-4-204. Methods of Sending and Presenting - Sending Directly to Payor Bank
§ 4-4-205. Depositary Bank Holder of Unindorsed Item
§ 4-4-206. Transfer Between Banks
§ 4-4-207. Transfer Warranties
§ 4-4-208. Presentment Warranties
§ 4-4-209. Encoding and Retention Warranties
§ 4-4-210. Security Interest of Collecting Bank in Items, Accompanying Documents, and Proceeds
§ 4-4-211. When Bank Gives Value for Purposes of Holder in Due Course
§ 4-4-213. Medium and Time of Settlement by Bank
§ 4-4-214. Right of Charge-Back or Refund - Liability of Collecting Bank - Return of Item