Negotiable instrument

4-3-104. Negotiable instrument. (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.