2020 Colorado Revised Statutes
Title 4 - Uniform Commercial Code
Article 3. Negotiable Instruments

• Section 4-3-101. Short title.
• Section 4-3-102. Subject matter.
• Section 4-3-103. Definitions.
• Section 4-3-104. Negotiable instrument.
• Section 4-3-105. Issue of instrument.
• Section 4-3-106. Unconditional promise or order.
• Section 4-3-109. Payable to bearer or to order.
• Section 4-3-110. Identification of person to whom instrument is payable.
• Section 4-3-113. Date of instrument.
• Section 4-3-116. Joint and several liability; contribution.
• Section 4-3-119. Notice of right to defend action.

• Section 4-3-201. Negotiation.
• Section 4-3-202. Negotiation subject to rescission.
• Section 4-3-203. Transfer of instrument; rights acquired by transfer.
• Section 4-3-204. Indorsement.
• Section 4-3-205. Special indorsement; blank indorsement; anomalous indorsement.
• Section 4-3-206. Restrictive indorsement.
• Section 4-3-207. Reacquisition.

301. Person entitled to enforce instrument. "Person entitled to enforce" an instrument means (i) the holder of the instrument, (ii) a nonholder in possession of the instrument who has the rights of a holder, or (iii) a person not in possession of the instrument who is entitled to enforce the instrument pursuant to section 4-3-309 or 4-3-418 (d). A person may be a person entitled to enforce the instrument even though the person is not the owner of the instrument or is in wrongful possession of the instrument.

Source: L. 94: Entire article R&RE, p. 853, § 1, effective January 1, 1995.

Editor's note: This section is similar to former § 4-3-301 as it existed prior to 1994.

302. Holder in due course. (a) Subject to subsection (c) of this section and section 4-3-106 (d) "holder in due course" means the holder of an instrument if:

1. The instrument when issued or negotiated to the holder does not bear such apparentevidence of forgery or alteration or is not otherwise so irregular or incomplete as to call into question its authenticity; and

2. The holder took the instrument (i) for value, (ii) in good faith, (iii) without notice thatthe instrument is overdue or has been dishonored or that there is an uncured default with respect to payment of another instrument issued as part of the same series, (iv) without notice that the instrument contains an unauthorized signature or has been altered, (v) without notice of any claim to the instrument described in section 4-3-306, and (vi) without notice that any party has a defense or claim in recoupment described in section 4-3-305 (a).

2. Notice of discharge of a party, other than discharge in an insolvency proceeding, isnot notice of a defense under subsection (a) of this section, but discharge is effective against a person who became a holder in due course with notice of the discharge. Public filing or recording of a document does not of itself constitute notice of a defense, claim in recoupment, or claim to the instrument.

3. Except to the extent a transferor or predecessor in interest has rights as a holder indue course, a person does not acquire rights of a holder in due course of an instrument taken (i) by legal process or by purchase in an execution, bankruptcy, or creditor's sale or similar proceeding, (ii) by purchase as part of a bulk transaction not in ordinary course of business of the transferor, or (iii) as the successor in interest to an estate or other organization.

4. If, under section 4-3-303 (a)(1), the promise of performance that is the considerationfor an instrument has been partially performed, the holder may assert rights as a holder in due course of the instrument only to the fraction of the amount payable under the instrument equal to the value of the partial performance divided by the value of the promised performance.

5. If (i) the person entitled to enforce an instrument has only a security interest in theinstrument and (ii) the person obliged to pay the instrument has a defense, claim in recoupment, or claim to the instrument that may be asserted against the person who granted the security interest, the person entitled to enforce the instrument may assert rights as a holder in due course only to an amount payable under the instrument which, at the time of enforcement of the instrument, does not exceed the amount of the unpaid obligation secured.

6. To be effective, notice must be received at a time and in a manner that gives a reasonable opportunity to act on it.

7. This section is subject to any law limiting status as a holder in due course in particular classes of transactions.

Source: L. 94: Entire article R&RE, p. 853, § 1, effective January 1, 1995.

Editor's note: This section is similar to former § 4-3-302 as it existed prior to 1994.

Cross references: For the effect of the "Uniform Consumer Credit Code" on holder in due course, see § 5-3-303.

• Section 4-3-303. Value and consideration.
• Section 4-3-304. Overdue instrument.
• Section 4-3-305. Defenses and claims in recoupment.
• Section 4-3-306. Claims to an instrument.
• Section 4-3-307. Notice of breach of fiduciary duty.
• Section 4-3-308. Proof of signatures and status as holder in due course.
• Section 4-3-309. Enforcement of lost, destroyed, or stolen instrument.
• Section 4-3-310. Effect of instrument on obligation for which taken.
• Section 4-3-311. Accord and satisfaction by use of instrument.
• Section 4-3-312. Lost, destroyed, or stolen cashier's check, teller's check, or certified check.

• Section 4-3-401. Signature.
• Section 4-3-402. Signature by representative.
• Section 4-3-403. Unauthorized signature.
• Section 4-3-404. Impostors; fictitious payees.
• Section 4-3-405. Employer's responsibility for fraudulent indorsement by employee.
• Section 4-3-406. Negligence contributing to forged signature or alteration of instrument.
• Section 4-3-407. Alteration.
• Section 4-3-408. Drawee not liable on unaccepted draft.
• Section 4-3-409. Acceptance of draft; certified check.
• Section 4-3-410. Acceptance of varying draft.
• Section 4-3-411. Refusal to pay cashier's checks, teller's checks, and certified checks.
• Section 4-3-412. Obligation of issuer of note or cashier's check.
• Section 4-3-413. Obligation of acceptor.
• Section 4-3-414. Obligation of drawer.
• Section 4-3-415. Obligation of indorser.
• Section 4-3-416. Transfer warranties.
• Section 4-3-417. Presentment warranties.
• Section 4-3-418. Payment or acceptance by mistake.
• Section 4-3-419. Instruments signed for accommodation.
• Section 4-3-420. Conversion of instrument.

• Section 4-3-501. Presentment.
• Section 4-3-502. Dishonor.
• Section 4-3-503. Notice of dishonor.
• Section 4-3-504. Excused presentment and notice of dishonor.
• Section 4-3-505. Evidence of dishonor.
• Section 4-3-506. Recording credit card or social security numbers prohibited.

• Section 4-3-601. Discharge and effect of discharge.
• Section 4-3-602. Payment.
• Section 4-3-603. Tender of payment.
• Section 4-3-604. Discharge by cancellation or renunciation.
• Section 4-3-605. Discharge of indorsers and accommodation parties.