Colorado Code
Part 3 - Execution of Sender's Payment Order by Receiving Bank
§ 4-4.5-303. Erroneous Execution of Payment Order

Source: L. 90: Entire article added, p. 354, § 1, effective January 1, 1991.




If Originator's Bank erroneously executed Originator's order by instructing Beneficiary's Bank to pay less than $1,000,000, subsection (b) applies. If Originator's Bank corrects its error by issuing another payment order to Beneficiary's Bank that results in payment of $1,000,000 to Beneficiary, Originator's Bank is entitled to payment of $1,000,000 from Originator. If the mistake is not corrected, Originator's Bank is entitled to payment from Originator only in the amount of the order issued by Originator's Bank.

Structure Colorado Code