Colo. Rev. Stat. » Title 4
Colorado Revised Statutes

Colo. Rev. Stat. § 4-4-202 (2026)

Responsibility for collection or return - when action timely

✓ current as of July 2026
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(a) A collecting bank must exercise ordinary care in:

(1) Presenting an item or sending it for presentment;

(2) Sending notice of dishonor or nonpayment or returning an item other than a documentary draft to the bank's transferor after learning that the item has not been paid or accepted, as the case may be;

(3) Settling for an item when the bank receives final settlement; and

(4) Notifying its transferor of any loss or delay in transit within a reasonable time after discovery thereof.

(b) A collecting bank exercises ordinary care under subsection (a) of this section by taking proper action before its midnight deadline following receipt of an item, notice, or settlement. Taking proper action within a reasonably longer time may constitute the exercise of ordinary care, but the bank has the burden of establishing timeliness.

(c) Subject to subsection (a)(1) of this section, a bank is not liable for the insolvency, neglect, misconduct, mistake, or default of another bank or person or for loss or destruction of an item in the possession of others or in transit.

Source: L. 94: Entire article amended with relocations, p. 886, § 2, effective January 1, 1995.

Notes of Decisions
Cited in 3 cases (2 in the last 5 years), 2007–2024 · leading case: Shelby Resources, LLC v. Wells Fargo Bank, 160 P.3d 387 (Colo. Ct. App. 2007).
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Shelby Resources, LLC v. Wells Fargo Bank, 160 P.3d 387 (Colo. Ct. App. 2007). · cites it 6× “Section 4-4-202, C.R.S.2006, sets forth in detail a bank's obligation to exercise ordinary care: (a) A collecting bank must exercise ordinary care in: (1) Presenting an item or sending it for presentment; (2) Sending notice of dishonor or nonpayment or returning an item other…”
Ent Credit v. Sayre (Colo. Ct. App. 2024). “§ 4-4-202(b). ¶ 16 If a collecting bank has given provisional credit to its customer for a deposited check, but the payor bank dishonors the check, the collecting bank may 7 revoke the settlement given by it, charge-back the amount of any credit given for the item to its…”
Ent Credit v. Sayre (Colo. Ct. App. 2024). “§ 4-4-202(b). ¶ 16 If a collecting bank has given provisional credit to its customer for a deposited check, but the payor bank dishonors the check, the collecting bank may 7 revoke the settlement given by it, charge-back the amount of any credit given for the item to its…”
Colo. Rev. Stat. § 4-4-202(b): 2 cases
Ent Credit v. Sayre (Colo. Ct. App. 2024). “§ 4-4-202(b). ¶ 16 If a collecting bank has given provisional credit to its customer for a deposited check, but the payor bank dishonors the check, the collecting bank may 7 revoke the settlement given by it, charge-back the amount of any credit given for the item to its…”
Ent Credit v. Sayre (Colo. Ct. App. 2024). “§ 4-4-202(b). ¶ 16 If a collecting bank has given provisional credit to its customer for a deposited check, but the payor bank dishonors the check, the collecting bank may 7 revoke the settlement given by it, charge-back the amount of any credit given for the item to its…”
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