Source: L. 90: Entire article added, p. 358, § 1, effective January 1, 1991.
With respect to ACH transfers made through a Federal Reserve Bank acting as an intermediary bank, the Federal Reserve Bank is obliged under Section 4A-402(b) to pay a beneficiary's bank that accepts the payment order. Unlike Fedwire transfers, under current ACH practice a Federal Reserve Bank that processes a payment order does not obligate itself to pay if the originator's bank fails to pay the Federal Reserve Bank. It is assumed that the Federal Reserve will use its right of preemption which is recognized in Section 4A-107 to disclaim the Section 4A-402(b) obligation in ACH transactions if it decides to retain the provisional payment rule.
Structure Colorado Code
Title 4 - Uniform Commercial Code
§ 4-4.5-402. Obligation of Sender to Pay Receiving Bank
§ 4-4.5-403. Payment by Sender to Receiving Bank
§ 4-4.5-404. Obligation of Beneficiary's Bank to Pay and Give Notice to Beneficiary
§ 4-4.5-405. Payment by Beneficiary's Bank to Beneficiary
§ 4-4.5-406. Payment by Originator to Beneficiary; Discharge of Underlying Obligation