Colorado § 4-4-407 - Payor bank's right to subrogation on improper payment.
Full text of Colorado Colorado Revised Statutes § 4-4-407 — Payor bank's right to subrogation on improper payment., with citation guidance and answers to common questions.
§ 4-4-407. Payor bank's right to subrogation on improper payment.
If a payor bank has paid an item over the order of the drawer or maker to stop payment, or after an account has been closed, or otherwise under circumstances giving a basis for objection by the drawer or maker, to prevent unjust enrichment and only to the extent necessary to prevent loss to the bank by reason of its payment of the item, the payor bank is subrogated to the rights:
(1) Of any holder in due course on the item against the drawer or maker;
(2) Of the payee or any other holder of the item against the drawer or maker either on the item or under the transaction out of which the item arose; and
(3) Of the drawer or maker against the payee or any other holder of the item with respect to the transaction out of which the item arose.
Source: L. 94: Entire article amended with relocations, p. 903, § 2, effective January 1, 1995.
PART 5
COLLECTION OF DOCUMENTARY DRAFTS
Source: official Colorado text · Last verified 2026-08-27
Frequently Asked Questions About Colorado § 4-4-407
What does Colorado Revised Statutes § 4-4-407 cover?
Section 4-4-407 ("Payor bank's right to subrogation on improper payment.") 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 § 4-4-407?
A common citation format is "Colorado Revised Statutes § 4-4-407" (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 § 4-4-407 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.