Colorado § 11-111-112 - Duties and liability of bank.
Full text of Colorado Colorado Revised Statutes § 11-111-112 — Duties and liability of bank., with citation guidance and answers to common questions.
§ 11-111-112. Duties and liability of bank.
(1) A bank does not have a fiduciary duty to any person with respect to a special deposit.
(2) When the bank holding a special deposit becomes obligated to pay a beneficiary, a debtor-creditor relationship arises between the bank and beneficiary.
(3) The bank holding a special deposit has a duty to a beneficiary to comply with the account agreement and this article 111.
(4) If the bank holding a special deposit does not comply with the account agreement or this article 111, the bank is liable to a depositor or beneficiary only for damages proximately caused by the noncompliance. Except as provided by other law of this state, the bank is not liable for consequential, special, or punitive damages.
(5) The bank holding a special deposit may rely on records presented in compliance with the account agreement to determine whether the bank is obligated to pay a beneficiary.
(6) If the account agreement requires payment on presentation of a record, the bank shall determine within a reasonable time whether the record is sufficient to require payment. If the agreement requires action by the bank on presentation of a record, the bank is not liable for relying in good faith on the genuineness of the record if the record appears on its face to be genuine.
(7) Unless the account agreement provides otherwise, the bank is not required to determine whether a permissible purpose stated in the agreement continues to exist.
Source: L. 2024: Entire article added, (HB 24-1232), ch. 200, p. 1227, § 1, effective August 7.
Source: official Colorado text · Last verified 2026-08-27
Frequently Asked Questions About Colorado § 11-111-112
What does Colorado Revised Statutes § 11-111-112 cover?
Section 11-111-112 ("Duties and liability of bank.") is part of the Colorado Revised Statutes, the codified statutory law of Colorado. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Colorado § 11-111-112?
A common citation format is "Colorado Revised Statutes § 11-111-112" (Colorado). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Colorado law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Colorado official source linked on this page or consult a licensed Colorado attorney.
How does Colorado § 11-111-112 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Colorado can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Colorado.