Colorado § 4-3-103 - Definitions.
Full text of Colorado Colorado Revised Statutes § 4-3-103 — Definitions., with citation guidance and answers to common questions.
§ 4-3-103. Definitions.
(a) In this article:
(1) "Acceptor" means a drawee who has accepted a draft.
(2) "Drawee" means a person ordered in a draft to make payment.
(3) "Drawer" means a person who signs or is identified in a draft as a person ordering payment.
(4) "Good faith" means honesty in fact and the observance of reasonable commercial standards of fair dealing.
(5) "Maker" means a person who signs or is identified in a note as a person undertaking to pay.
(6) "Order" means a written instruction to pay money signed by the person giving the instruction. The instruction may be addressed to any person, including the person giving the instruction, or to one or more persons jointly or in the alternative but not in succession. An authorization to pay is not an order unless the person authorized to pay is also instructed to pay.
(7) "Ordinary care" in the case of a person engaged in business means observance of reasonable commercial standards, prevailing in the area in which the person is located, with respect to the business in which the person is engaged. In the case of a bank that takes an instrument for processing for collection or payment by automated means, reasonable commercial standards do not require the bank to examine the instrument if the failure to examine does not violate the bank's prescribed procedures and the bank's procedures do not vary unreasonably from general banking usage not disapproved by this article or article 4 of this title.
(8) "Party" means a party to an instrument.
(9) "Promise" means a written undertaking to pay money signed by the person undertaking to pay. An acknowledgment of an obligation by the obligor is not a promise unless the obligor also undertakes to pay the obligation.
(10) "Prove" with respect to a fact means to meet the burden of establishing the fact (section 4-1-201 (b)(8)).
(11) "Remitter" means a person who purchases an instrument from its issuer if the instrument is payable to an identified person other than the purchaser.
(b) Other definitions applying to this article and the sections in which they appear are:
"Acceptance" Section 4-3-409
"Accommodated party" Section 4-3-419
"Accommodation party" Section 4-3-419
"Alteration" Section 4-3-407
"Anomalous indorsement" Section 4-3-205
"Blank indorsement" Section 4-3-205
"Cashier's check" Section 4-3-104
"Certificate of deposit" Section 4-3-104
"Certified check" Section 4-3-409
"Check" Section 4-3-104
"Consideration" Section 4-3-303
"Demand draft" Section 4-3-104
"Draft" Section 4-3-104
"Holder in due course" Section 4-3-302
"Incomplete instrument" Section 4-3-115
"Indorsement" Section 4-3-204
"Indorser" Section 4-3-204
"Instrument" Section 4-3-104
"Issue" Section 4-3-105
"Issuer" Section 4-3-105
"Negotiable instrument" Section 4-3-104
"Negotiation" Section 4-3-201
"Note" Section 4-3-104
"Payable at a definite time" Section 4-3-108
"Payable on demand" Section 4-3-108
"Payable to bearer" Section 4-3-109
"Payable to order" Section 4-3-109
"Payment" Section 4-3-602
"Person entitled to enforce" Section 4-3-301
"Presentment" Section 4-3-501
"Reacquisition" Section 4-3-207
"Special indorsement" Section 4-3-205
"Teller's check" Section 4-3-104
"Transfer of instrument" Section 4-3-203
"Traveler's check" Section 4-3-104
"Value" Section 4-3-303
(c) The following definitions in other articles apply to this article:
"Bank" Section 4-4-105
"Banking day" Section 4-4-104
"Clearing house" Section 4-4-104
"Collecting bank" Section 4-4-105
"Depositary bank" Section 4-4-105
"Documentary draft" Section 4-4-104
"Intermediary bank" Section 4-4-105
"Item" Section 4-4-104
"Payor bank" Section 4-4-105
"Suspends payments" Section 4-4-104
(d) In addition, article 1 of this title contains general definitions and principles of construction and interpretation applicable throughout this article.
Source: L. 94: Entire article R&RE, p. 840, § 1, effective January 1, 1995. L. 2001: (b) amended, p. 865, § 2, effective August 8. L. 2006: (a)(10) amended, p. 496, § 25, effective September 1.
Editor's note: This section is similar to former § 4-3-102 as it existed prior to 1994.
Cross references: For the legislative declaration contained in the 2001 act amending subsection (b), see section 1 of chapter 244, Session Laws of Colorado 2001.
ANNOTATION
Annotator's note. Since § 4-3-103 is similar to § 4-3-102 and 4-3-118 as they existed prior to the repeal and reenactment of this article, effective January 1, 1995, see the annotations under former § 4-3-102 and § 4-3-118 in the 1992 replacement volume.
Negotiable instruments law is applicable only to negotiable instruments and the rights and duties arising thereunder. Am. Nat'l Bank v. First Nat'l Bank, 130 Colo. 557, 277 P.2d 951 (1954) (decided under repealed CSA, C. 112, § 1, negotiable instruments law).
N.I.L. did not apply to negotiable instruments made and delivered before it took effect. Hickman-Lunbeck Grocery Co. v. Hager, 75 Colo. 554, 227 P. 829 (1924) (decided under repealed laws antecedent to CSA, C. 112, § 195, negotiable instruments law).
Bad faith. For purposes of subsection (5), bad faith means actions in knowing or reckless disregard of customer's contractual rights and negligence alone does not constitute bad faith. Peregrine Homes v. Jefferson Bank & Trust, 713 P.2d 1342 (Colo. App. 1985).
Applied in Hollemon v. Murray, 666 P.2d 1107 (Colo. App. 1982).
Frequently Asked Questions About Colorado § 4-3-103
What does Colorado Revised Statutes § 4-3-103 cover?
Section 4-3-103 ("Definitions.") 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 § 4-3-103?
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Sources & Verification
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