reglab/housing_qa huggingface dataset:
CO Code § 4-3-114 (2021)
2021 Colorado Code|Title 4 - Uniform Commercial Code|Article 3 - Negotiable Instruments|Part 1 - General Provisions and Definitions|§ 4-3-114. Contradictory Terms of Instrument

 If an instrument contains contradictory terms, type-written terms prevail over printed terms, handwritten terms prevail over both, and words prevail over numbers.   History. Source: L. 94: Entire article R&RE, p. 847, § 1, effective January 1, 1995.    Editor's note:   This section is similar to former § 4-3-118 as it existed prior to 1994.   OFFICIAL COMMENT   Section 3-114 replaces subsections (b) and (c) of former Section 3-118.   ANNOTATION   Annotator's note. The following annotations include cases decided under former provisions similar to this section.   Parol evidence is admissible to determine if reformation of instrument is appropriate where misrepresentations of legal effect of contract by assignee's attorney was alleged. Boyles Bros. Drilling v. Orion Indus., Ltd., 761 P.2d 278 (Colo. App. 1988).   Applies only to terms of instrument itself and not to an extraneous matter appearing on a document. Pueblo Bank Trust Co. v. McMartin, 31 Colo. App. 546, 506 P.2d 759 .   Applicable where a single amount, such as an amount of principal, is intended to be expressed both in figures an in words and there is a conflict between the figures and the words, or an ambiguity in either the figures or the words used. Mees v. Canino, 31 Colo. App. 514, 503 P.2d 1036 (1972).   Where the word “renewed” is stamped across face of note, but handwritten words “stamped in error” appears next to stamp, and there is no evidence as to who made latter entry or when it was done, it is error to instruct jury that written words on note are controlling. Pueblo Bank Trust Co. v. McMartin, 31 Colo. App. 546, 506 P.2d 759 (1972).   When an installment note is written for $27,000 and the note states that the maker promises to pay “Two Hundred Twenty-Five” dollars, “said principal payable on the first day of each and every month commencing April 1, 1970,” the amount is not controlled by the written figure but is in the principal amount of $27,000 and not $225. Mees v. Canino, 31 Colo. App. 514, 503 P.2d 1036 (1972).
CO Code § 4-3-116 (2021)
2021 Colorado Code|Title 4 - Uniform Commercial Code|Article 3 - Negotiable Instruments|Part 1 - General Provisions and Definitions|§ 4-3-116. Joint and Several Liability; Contribution

  Except as otherwise provided in the instrument, two or more persons who have the same liability on an instrument as makers, drawers, acceptors, indorsers who indorse as joint payees, or anomalous indorsers are jointly and severally liable in the capacity in which they sign.    Except as provided in section 4-3-419 (e) or by agreement of the affected parties, a party having joint and several liability who pays the instrument is entitled to receive from any party having the same joint and several liability contribution in accordance with applicable law.    Discharge of one party having joint and several liability by a person entitled to enforce the instrument does not affect the right under subsection (b) of this section of a party having the same joint and several liability to receive contribution from the party discharged.     History. Source: L. 94: Entire article R&RE, p. 848, § 1, effective January 1, 1995.    OFFICIAL COMMENT   1. Subsection (a) replaces subsection (e) of former Section 3-118. Subsection (b) states contribution rights of parties with joint and several liability by referring to applicable law. But subsection (b) is subject to Section 3-419(e). If one of the parties with joint and several liability is an accommodation party and the other is the accommodated party, Section 3-419(e) applies. Subsection (c) deals with discharge. The discharge of a jointly and severally liable obligor does not affect the right of other obligors to seek contribution from the discharged obligor.   2. Indorsers normally do not have joint and several liability. Rather, an earlier indorser has liability to a later indorser. But indorsers can have joint and several liability in two cases. If an instrument is payable to two payees jointly, both payees must indorse. The indorsement is a joint indorsement and the indorsers have joint and several liability and subsection (b) applies. The other case is that of two or more anomalous indorsers. The term is defined in Section 3-205(d). An anomalous indorsement normally indicates that the indorser signed as an accommodation party. If more than one accommodation party indorses a note as an accommodation to the maker, the indorsers have joint and several liability and subsection (b) applies.   ANNOTATION   Promissory note signed by two persons “I promise to pay” is joint and several. See Ullery v. Brohm, 20 Colo. App. 389, 79 P. 180 (decided under repealed laws antecedent to CSA, C. 112, § 17, negotiable instruments law).
CO Code § 4-3-119 (2021)
2021 Colorado Code|Title 4 - Uniform Commercial Code|Article 3 - Negotiable Instruments|Part 1 - General Provisions and Definitions|§ 4-3-119. Notice of Right to Defend Action

 In an action for breach of an obligation for which a third person is answerable over pursuant to this article or article 4 of this title, the defendant may give the third person written notice of the litigation, and the person notified may then give similar notice to any other person who is answerable over. If the notice states (i) that the person notified may come in and defend and (ii) that failure to do so will bind the person notified in an action later brought by the person giving the notice as to any determination of fact common to the two litigations, the person notified is so bound unless after seasonable receipt of the notice the person notified does come in and defend.   History. Source: L. 94: Entire article R&RE, p. 849, § 1, effective January 1, 1995.    Editor's note:   This section is similar to former § 4-3-803 as it existed prior to 1994.   OFFICIAL COMMENT   This section is a restatement of former Section 3-803.   ANNOTATION   Reference to independent agreement used to be considered as destroying negotiability. See Abercrombie v. Bear Canon Coal Co., 86 Colo. 169 , 279 P. 42 ; Bank of Kimball v. Rostek, 161 Colo. 584 , 423 P.2d 579 (1967) (decided under repealed § 95-1-1, C.R.S. 1963, and laws antecedent to CSA, C. 112, § 1, negotiable instruments law). Reference to independent agreement used to be considered as destroying negotiability. See Abercrombie v. Bear Canon Coal Co., 86 Colo. 169 , 279 P. 42 ; Bank of Kimball v. Rostek, 161 Colo. 584 , 423 P.2d 579 (1967) (decided under repealed § 95-1-1, C.R.S. 1963, and laws antecedent to CSA, C. 112, § 1, negotiable instruments law).
CO Code § 4-3-202 (2021)
2021 Colorado Code|Title 4 - Uniform Commercial Code|Article 3 - Negotiable Instruments|Part 2 - Negotiation, Transfer, and Indorsement|§ 4-3-202. Negotiation Subject to Rescission

  Negotiation is effective even if obtained (i) from an infant, a corporation exceeding its powers, or a person without capacity, (ii) by fraud, duress, or mistake, or (iii) in breach of duty or as part of an illegal transaction.    To the extent permitted by other law, negotiation may be rescinded or may be subject to other remedies, but those remedies may not be asserted against a subsequent holder in due course or a person paying the instrument in good faith and without knowledge of facts that are a basis for rescission or other remedy.     History. Source: L. 94: Entire article R&RE, p. 850, § 1, effective January 1, 1995.    Editor's note:   This section is similar to former § 4-3-207 as it existed prior to 1994.   OFFICIAL COMMENT   1. This section is based on former Section 3-207. Subsection (2) of former Section 3-207 prohibited rescission of a negotiation against holders in due course. Subsection (b) of Section 3-202 extends this protection to payor banks.   2. Subsection (a) applies even though the lack of capacity or the illegality, is of a character which goes to the essence of the transaction and makes it entirely void. It is inherent in the character of negotiable instruments that any person in possession of an instrument which by its terms is payable to that person or to bearer is a holder and may be dealt with by anyone as a holder. The principle finds its most extreme application in the well settled rule that a holder in due course may take the instrument even from a thief and be protected against the claim of the rightful owner. The policy of subsection (a) is that any person to whom an instrument is negotiated is a holder until the instrument has been recovered from that person's possession. The remedy of a person with a claim to an instrument is to recover the instrument by replevin or otherwise; to impound it or to enjoin its enforcement, collection or negotiation; to recover its proceeds from the holder; or to intervene in any action brought by the holder against the obligor. As provided in Section 3-305(c), the claim of the claimant is not a defense to the obligor unless the claimant defends the action.   3. There can be no rescission or other remedy against a holder in due course or a person who pays in good faith and without notice, even though the prior negotiation may have been fraudulent or illegal in its essence and entirely void. As against any other party the claimant may have any remedy permitted by law. This section is not intended to specify what that remedy may be, or to prevent any court from imposing conditions or limitations such as prompt action or return of the consideration received. All such questions are left to the law of the particular jurisdiction. Section 3-202 gives no right that would not otherwise exist. The section is intended to mean that any remedies afforded by other law are cut off only by a holder in due course.
CO Code § 4-3-306 (2021)
2021 Colorado Code|Title 4 - Uniform Commercial Code|Article 3 - Negotiable Instruments|Part 3 - Enforcement of Instruments|§ 4-3-306. Claims to an Instrument

 A person taking an instrument, other than a person having rights of a holder in due course, is subject to a claim of a property or possessory right in the instrument or its proceeds, including a claim to rescind a negotiation and to recover the instrument or its proceeds. A person having rights of a holder in due course takes free of the claim to the instrument.   History. Source: L. 94: Entire article R&RE, p. 857, § 1, effective January 1, 1995.    OFFICIAL COMMENT   This section expands on the reference to “claims to” the instrument mentioned in former Sections 3-305 and 3-306. Claims covered by the section include not only claims to ownership but also any other claim of a property or possessory right. It includes the claim to a lien or the claim of a person in rightful possession of an instrument who was wrongfully deprived of possession. Also included is a claim based on Section 3-202(b) for rescission of a negotiation of the instrument by the claimant. Claims to an instrument under Section 3-306 are different from claims in recoupment referred to in Section 3-305(a)(3).
CO Code § 4-3-408 (2021)
2021 Colorado Code|Title 4 - Uniform Commercial Code|Article 3 - Negotiable Instruments|Part 4 - Liability of Parties|§ 4-3-408. Drawee Not Liable on Unaccepted Draft

 A check or other draft does not of itself operate as an assignment of funds in the hands of the drawee available for its payment, and the drawee is not liable on the instrument until the drawee accepts it.   History. Source: L. 94: Entire article R&RE, p. 865, § 1, effective January 1, 1995.    Editor's note:   This section is similar to former § 4-3-409 as it existed prior to 1994.   OFFICIAL COMMENT   1. This section is a restatement of former Section 3-409(1). Subsection (2) of former Section 3-409 is deleted as misleading and superfluous. Comment 3 says of subsection (2): “It is intended to make it clear that this section does not in any way affect any liability which may arise apart from the instrument.” In reality subsection (2) did not make anything clear and was a source of confusion. If all it meant was that a bank that has not certified a check may engage in other conduct that might make it liable to a holder, it stated the obvious and was superfluous. Section 1-103 is adequate to cover those cases.   2. Liability with respect to drafts may arise under other law. For example, Section 4-302 imposes liability on a payor bank for late return of an item.   ANNOTATION   I.GENERAL CONSIDERATION.   Annotator's note. The following annotations include cases decided under former provisions similar to this section.   II.DRAFT NOT AN ASSIGNMENT.   The giving of a check does not assign present funds on deposit and does not create drawee liability to the payee unless and until it is accepted by the drawee. Denver Elec. Neon Serv. Corp. v. Gerald H. Phipps, Inc., 143 Colo. 530 , 354 P.2d 618.   Bank may decline payment. Even where a signature to a check is correct, and all other required indicia appear thereon, still, the bank on which a check is drawn is not liable in action to the drawee thereof and in all legal grace may decline payment of the check. Henderson v. Greeley Nat'l Bank, 111 Colo. 365 , 142 P.2d 480 (1943).   Even before the passage of the negotiable instrument law it was ruled that a right of action did not exist in favor of the holder of a check against the drawee bank where there has been no acceptance or promise to pay by the latter in Colo. Nat'l Bank v. Boettcher, (5 Colo. 185 (1879), aff'd, 15 Colo. 16 , 24 P. 582 (1890)), and the statute has expressly enacted such. Van Buskirk v. State Bank, 35 Colo. 142 , 83 P. 778 (1905).   III.OTHER LIABILITY NOT AFFECTED.   A promise to accept a bill or order made before the bill or order is drawn may be enforced against the party making the promise by one who purchases such bill or order relying upon the faith of the promise, and the drawee cannot avoid liability by proof of a contingent condition precedent where such orders were not drawn in excess of the amount of the promise. McPhee McGinnity v. Fowler, 36 Colo. 202 , 85 P. 421 (1906) (decided under repealed laws antecedent to CSA, C. 112, § 127, negotiable instruments law).
CO Code § 4-3-410 (2021)
2021 Colorado Code|Title 4 - Uniform Commercial Code|Article 3 - Negotiable Instruments|Part 4 - Liability of Parties|§ 4-3-410. Acceptance of Varying Draft

  If the terms of a drawee's acceptance vary from the terms of the draft as presented, the holder may refuse the acceptance and treat the draft as dishonored. In that case, the drawee may cancel the acceptance.    The terms of a draft are not varied by an acceptance to pay at a particular bank or place in the United States, unless the acceptance states that the draft is to be paid only at that bank or place.    If the holder assents to an acceptance varying the terms of a draft, the obligation of each drawer and indorser that does not expressly assent to the acceptance is discharged.     History. Source: L. 94: Entire article R&RE, p. 866, § 1, effective January 1, 1995.    Editor's note:   This section is similar to former § 4-3-412 as it existed prior to 1994.   OFFICIAL COMMENT   1. This section is a restatement of former Section 3-412. It applies to conditional acceptances, acceptances for part of the amount, acceptances to pay at a different time from that required by the draft, or to the acceptance of less than all of the drawees. It applies to any other engagement changing the essential terms of the draft. If the drawee makes a varied acceptance the holder may either reject it or assent to it. The holder may reject by insisting on acceptance of the draft as presented. Refusal by the drawee to accept the draft as presented is dishonor. In that event the drawee is not bound by the varied acceptance and is entitled to have it canceled.   If the holder assents to the varied acceptance, the drawee's obligation as acceptor is according to the terms of the varied acceptance. Under subsection (c) the effect of the holder's assent is to discharge any drawer or indorser who does not also assent. The assent of the drawer or indorser must be affirmatively expressed. Mere failure to object within a reasonable time is not assent which will prevent the discharge.   2. Under subsection (b) an acceptance does not vary from the terms of the draft if it provides for payment at any particular bank or place in the United States unless the acceptance states that the draft is to be paid only at such bank or place. Section 3-501(b)(1) states that if an instrument is payable at a bank in the United States presentment must be made at the place of payment (Section 3-111) which in this case is at the designated bank.   ANNOTATION   A conditional acceptance is as binding and effective as an absolute acceptance upon compliance with the conditions, but ineffective when the conditions have not been and probably never will be fulfilled. Barnsdall v. Waltemeyer, 142 F. 415 (8th Cir. 1905), cert. denied, 201 U.S. 643, 26 S. Ct. 759, 50 L. Ed. 902 (decided under repealed laws antecedent to CSA, C. 112, § 141, negotiable instruments law).
CO Code § 4-3-413 (2021)
2021 Colorado Code|Title 4 - Uniform Commercial Code|Article 3 - Negotiable Instruments|Part 4 - Liability of Parties|§ 4-3-413. Obligation of Acceptor

  The acceptor of a draft is obliged to pay the draft (i) according to its terms at the time it was accepted, even though the acceptance states that the draft is payable “as originally drawn” or equivalent terms, (ii) if the acceptance varies the terms of the draft, according to the terms of the draft as varied, or (iii) if the acceptance is of a draft that is an incomplete instrument, according to its terms when completed, to the extent stated in sections 4-3-115 and 4-3-407. The obligation is owed to a person entitled to enforce the draft or to the drawer or an indorser who paid the draft under section 4-3-414 or 4-3-415.    If the certification of a check or other acceptance of a draft states the amount certified or accepted, the obligation of the acceptor is that amount. If (i) the certification or acceptance does not state an amount, (ii) the amount of the instrument is subsequently raised, and (iii) the instrument is then negotiated to a holder in due course, the obligation of the acceptor is the amount of the instrument at the time it was taken by the holder in due course.     History. Source: L. 94: Entire article R&RE, p. 867, § 1, effective January 1, 1995.    Editor's note:   This section is similar to former § 4-3-413 as it existed prior to 1994.   OFFICIAL COMMENT   Subsection (a) is consistent with former Section 3-413(1). Subsection (b) has primary importance with respect to certified checks. It protects the holder in due course of a certified check that was altered after certification and before negotiation to the holder in due course. A bank can avoid liability for the altered amount by stating on the check the amount the bank agrees to pay. The subsection applies to other accepted drafts as well.
CO Code § 4-3-504 (2021)
2021 Colorado Code|Title 4 - Uniform Commercial Code|Article 3 - Negotiable Instruments|Part 5 - Dishonor|§ 4-3-504. Excused Presentment and Notice of Dishonor

  Presentment for payment or acceptance of an instrument is excused if (i) the person entitled to present the instrument cannot with reasonable diligence make presentment, (ii) the maker or acceptor has obligation to pay the instrument or is dead or in insolvency proceedings, (iii) by the terms of the instrument presentment is not necessary to enforce the obligation of indorsers or the drawer, (iv) the drawer or indorser whose obligation is being enforced has waived presentment or otherwise has no reason to expect or right to require that the instrument be paid or accepted, or (v) the drawer instructed the drawee not to pay or accept the draft or the drawee was not obligated to the drawer to pay the draft.    Notice of dishonor is excused if (i) by the terms of the instrument notice of dishonor is not necessary to enforce the obligation of a party to pay the instrument, or (ii) the party whose obligation is being enforced waived notice of dishonor. A waiver of presentment is also a waiver of notice of dishonor.    Delay in giving notice of dishonor is excused if the delay was caused by circumstances beyond the control of the person giving the notice and the person giving the notice exercised reasonable diligence after the cause of the delay ceased to operate.     History. Source: L. 94: Entire article R&RE, p. 875, § 1, effective January 1, 1995.    Editor's note:   This section is similar to former § 4-3-511 as it existed prior to 1994.   OFFICIAL COMMENT   Section 3-504 is largely a restatement of former Section 3-511. Subsection (4) of former Section 3-511 is replaced by Section 3-502(f).   ANNOTATION   Annotator's note. The following annotations include cases decided under former provisions similar to this section.   Presentment for payment and waiver of dishonor may be expressly or impliedly waived in accordance with this section. Torbert v. Montague, 38 Colo. 325 , 87 P. 1145.   Such waiver may consist of acts and declarations of the indorser calculated to mislead the holder, put him off his guard, or induce him to forbear taking the necessary steps to charge such indorser. Torbert v. Montague, 38 Colo. 325 , 87 P. 1145 (1906).   An indorser of a promissory note waives notice of dishonor under this section by repeated assurances before and after maturity that he would see that the note was paid. James v. Ward, 80 Colo. 293 , 250 P. 1097 (1926).   Notice of dishonor need not be alleged in an action against the indorser where it is alleged that payment was demanded of him. De La Vergne v. Globe Printing Co., 27 Colo. App. 308, 148 P. 923 (1915).
CO Code § 4-3-505 (2021)
2021 Colorado Code|Title 4 - Uniform Commercial Code|Article 3 - Negotiable Instruments|Part 5 - Dishonor|§ 4-3-505. Evidence of Dishonor

  The following are admissible as evidence and create a presumption of dishonor and of any notice of dishonor stated:   A document regular in form as provided in subsection (b) of this section which purports to be a protest;    A purported stamp or writing of the drawee, payor bank, or presenting bank on or accompanying the instrument stating that acceptance or payment has been refused unless reasons for the refusal are stated and the reasons are not consistent with dishonor;    A book or record of the drawee, payor bank, or collecting bank, kept in the usual course of business which shows dishonor, even if there is no evidence of who made the entry.       A protest is a certificate of dishonor made by a United States consul or vice consul, or a notary public or other person authorized to administer oaths by the law of the place where dishonor occurs. It may be made upon information satisfactory to that person. The protest must identify the instrument and certify either that presentment has been made or, if not made, the reason why it was not made, and that the instrument has been dishonored by nonacceptance or nonpayment. The protest may also certify that notice of dishonor has been given to some or all parties.     History. Source: L. 94: Entire article R&RE, p. 876, § 1, effective January 1, 1995.    Editor's note:   This section is similar to former § 4-3-510 as it existed prior to 1994.   OFFICIAL COMMENT   Protest is no longer mandatory and must be requested by the holder. Even if requested, protest is not a condition to the liability of indorsers or drawers. Protest is a service provided by the banking system to establish that dishonor has occurred. Like other services provided by the banking system, it will be available if market incentives, interbank agreements, or governmental regulations require it, but liabilities of parties no longer rest on it. Protest may be a requirement for liability on international drafts governed by foreign law which this Article cannot affect.