Colo. Rev. Stat. § 4-3-104

Negotiable instrument

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(a) Except as provided in subsections (c) and (d) of this section, "negotiable instrument" means an unconditional promise or order to pay a fixed amount of money, with or without interest or other charges described in the promise or order, if it: (1) Is payable to bearer or to order at the time it is issued or first comes into possession of a holder; (2) Is payable on demand or at a definite time; and (3) Does not state any other undertaking or instruction by the person promising or ordering payment to do any act in addition to the payment of money, but the promise or order may contain: (i) an undertaking or power to give, maintain, or protect collateral to secure payment; (ii) an authorization or power to the holder to confess judgment or realize on or dispose of collateral; (iii) a waiver of the benefit of any law intended for the advantage or protection of an obligor; (iv) a term that specifies the law that governs the promise or order; or (v) an undertaking to resolve in a specified forum a dispute concerning the promise or order. (b) "Instrument" means a negotiable instrument. (c) An order that meets all of the requirements of subsection (a) of this section, except paragraph (1), and otherwise falls within the definition of "check" in subsection (f) of this section is a negotiable instrument and a check. (d) A promise or order other than a check is not an instrument if, at the time it is issued or first comes into possession of a holder, it contains a conspicuous statement, however expressed, to the effect that the promise or order is not negotiable or is not an instrument governed by this article. (e) An instrument is a "note" if it is a promise and is a "draft" if it is an order. If an instrument falls within the definition of both "note" and "draft," a person entitled to enforce the instrument may treat it as either. (f) "Check" means (i) a draft, other than a documentary draft, payable on demand and drawn on a bank, (ii) a cashier's check or teller's check, or (iii) a demand draft. An instrument may be a check even though it is described on its face by another term, such as "money order." (g) "Cashier's check" means a draft with respect to which the drawer and drawee are the same bank or branches of the same bank. (h) "Teller's check" means a draft drawn by a bank (i) on another bank, or (ii) payable at or through a bank. (i) "Traveler's check" means an instrument that (i) is payable on demand, (ii) is drawn on or payable at or through a bank, (iii) is designated by the term "traveler's check" or by a substantially similar term, and (iv) requires, as a condition to payment, a countersignature by a person whose specimen signature appears on the instrument. (j) "Certificate of deposit" means an instrument containing an acknowledgment by a bank that a sum of money has been received by the bank and a promise by the bank to repay the sum of money. A certificate of deposit is a note of the bank. (k) (i) "Demand draft" means a writing not signed by the customer that is created by a third party under the purported authority of the customer for the purpose of charging the customer's account with a bank. A demand draft shall contain the customer's account number and shall contain any or all of the following: (1) The customer's printed or typewritten name; (2) A notation that the customer authorized the draft; or (3) The statement "No signature required" or words to that effect. (ii) A demand draft shall not include a check purportedly drawn by and bearing the signature of a fiduciary, as defined in section 4-3-307 (a)(1).

Source: L. 94: Entire article R&RE, p. 843, § 1, effective January 1, 1995. L. 2001: (f) amended and (k) added, p. 866, § 3, effective August 8. L. 2023: (a)(3) amended, (SB 23-090), ch. 136, p. 530, § 20, effective August 7.

Editor's note: This section is similar to former § 4-3-104 as it existed prior to 1994.

Cross references: (1) For other agreements affecting instrument, see § 4-3-117. (2) For the legislative declaration contained in the 2001 act amending subsection (f) and enacting subsection (k), see section 1 of chapter 244, Session Laws of Colorado 2001.

Notes of Decisions

Cited in 22 cases (4 in the last 5 years), 1975–2023 · leading case: Flatiron Linen, Inc. v. First American State Bank

Sort: Relevance Newest Treatment

Flatiron Linen, Inc. v. First American State Bank (2001) colo · cites it 2× “Section 4-3-104(g), 2 C.R.S. (2000), defines a cashier's check as "a draft with respect to which the drawer and drawee are the same bank or branches of the same bank.”

Flatiron Linen, Inc. v. First American State Bank (2000) coloctapp · cites it 3× “Section 4-3-104(8)(e), C.R.S.1999. The obligor on a negotiable instrument, which includes both drafts and notes, retains defenses which can be asserted against the holder or other person entitled to enforce the instrument.”

Georg v. Metro Fixtures Contractors, Inc. (2008) colo · cites it 5× “See § 4-3-104, C.R.S. (2007). The holder in due course doctrine is designed to encourage the transfer and usage of checks and facilitate the flow of capital.”

Reid v. Pyle (2002) coloctapp · cites it 4× “To be a “negotiable instrument” subject to the statutes governing such instruments, an instrument must contain, inter alia, an unconditional promise to pay a fixed amount of money, see § 4-3-104(a), C.R.S. 2001, on demand or at a definite time, § 4-3-104(a)(2), C.”

n v. Weidner Holdings, LLC (2019) coloctapp · cites it 4× “§ 4-3-104(a), C.R.S. 2019. 9 ¶ 17 We conclude that the two promissory notes here meet the definition of a negotiable instrument under the UCC.”

Newport Steel Corp. v. Thompson (1990) cod · cites it 3× “Colorado Revised Statute § 4-3-104 provides that a check is a negotiable instrument.”

Bryant v. Community Choice Credit Union (2007) coloctapp · cites it 2× “2006; see § 4-3-104(a), C.R.S.2006; Haberl v. Bigelow, 855 P.”

Rent-Rite Superkegs W., Ltd. v. World Bus. Lenders, LLC (In re Rent-Rite Superkegs W., Ltd.) (2019) cob · cites it 3× “§ 4-3-104. Promissory notes typically are classic "negotiable instruments" governed by the UCC.”

Roa v. Miller (1989) coloctapp · cites it 3× “” Section 4-3-104(l)(b), C.R.S. If a written agreement makes an obligation to pay subject to an express condition, so that it is not a negotiable instrument, statutory provisions relating to negotiable instruments are inapplicable to the transaction.”

DBA Enterprises, Inc. v. Findlay (1996) coloctapp · cites it 3× “Section 4-3-104, C.R.S. (1995 Cum.Supp.).”

U.S. Bank v. Roberts (In Re Roberts) (2007) cob · cites it 2× “See Colo.Rev.Stat. § 4-3-104. But Article 3 is not a recording statute.”

Submission of Interrogatories on House Bill 99-1325 (1999) colo “99-1325, § 43-4-704(9); § 4-3-104(a), 2 C.R.S. (1998) (defining a negotiable instrument as an unconditional promise or order to pay).”

Show all 22 citing cases →

— Colo. Rev. Stat. § 4-3-104(1) — 1 case

Brownlow v. Aman (1984) ca10

— Colo. Rev. Stat. § 4-3-104(1)(d) — 1 case

La Junta State Bank v. Travis (1986) colo

— Colo. Rev. Stat. § 4-3-104(2) — 1 case

Colorado Ex Rel. State Banking Board v. First National Bank of Fort Collins (1975) cod

— Colo. Rev. Stat. § 4-3-104(2)(a) — 1 case

First National Bank v. Ford Motor Credit Co. (1990) cod

— Colo. Rev. Stat. § 4-3-104(2)(b) — 2 cases

Newport Steel Corp. v. Thompson (1990) cod “Colorado Revised Statute § 4-3-104 provides that a check is a negotiable instrument.”

First National Bank v. Ford Motor Credit Co. (1990) cod

— Colo. Rev. Stat. § 4-3-104(8)(e) — 1 case

Flatiron Linen, Inc. v. First American State Bank (2000) coloctapp “Section 4-3-104(8)(e), C.R.S.1999. The obligor on a negotiable instrument, which includes both drafts and notes, retains defenses which can be asserted against the holder or other person entitled to enforce the instrument.”

— Colo. Rev. Stat. § 4-3-104(a) — 8 cases

Georg v. Metro Fixtures Contractors, Inc. (2008) colo “See § 4-3-104, C.R.S. (2007). The holder in due course doctrine is designed to encourage the transfer and usage of checks and facilitate the flow of capital.”

n v. Weidner Holdings, LLC (2019) coloctapp “§ 4-3-104(a), C.R.S. 2019. 9 ¶ 17 We conclude that the two promissory notes here meet the definition of a negotiable instrument under the UCC.”

Bryant v. Community Choice Credit Union (2007) coloctapp “2006; see § 4-3-104(a), C.R.S.2006; Haberl v. Bigelow, 855 P.”

Reid v. Pyle (2002) coloctapp “To be a “negotiable instrument” subject to the statutes governing such instruments, an instrument must contain, inter alia, an unconditional promise to pay a fixed amount of money, see § 4-3-104(a), C.R.S. 2001, on demand or at a definite time, § 4-3-104(a)(2), C.”

— Colo. Rev. Stat. § 4-3-104(a)(2) — 1 case

— Colo. Rev. Stat. § 4-3-104(b) — 2 cases

West Greeley National Bank v. Wygant (1982) coloctapp

Ashley Campbell, Inc. (2023) cob

— Colo. Rev. Stat. § 4-3-104(e) — 1 case

Rent-Rite Superkegs W., Ltd. v. World Bus. Lenders, LLC (In re Rent-Rite Superkegs W., Ltd.) (2019) cob “§ 4-3-104. Promissory notes typically are classic "negotiable instruments" governed by the UCC.”

— Colo. Rev. Stat. § 4-3-104(g) — 1 case

Flatiron Linen, Inc. v. First American State Bank (2001) colo “Section 4-3-104(g), 2 C.R.S. (2000), defines a cashier's check as "a draft with respect to which the drawer and drawee are the same bank or branches of the same bank.”

— Colo. Rev. Stat. § 4-3-104(l)(b) — 1 case

Roa v. Miller (1989) coloctapp “” Section 4-3-104(l)(b), C.R.S. If a written agreement makes an obligation to pay subject to an express condition, so that it is not a negotiable instrument, statutory provisions relating to negotiable instruments are inapplicable to the transaction.”

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