47-4407. Payor bank's right to subrogation on improper payment
If a payor bank has paid an item over the order of the drawer or maker to stop payment, or after an account has been closed or otherwise under circumstances giving a basis for objection by the drawer or maker, to prevent unjust enrichment and only to the extent necessary to prevent loss to the bank by reason of its payment of the item, the payor bank is subrogated to the rights:
1. Of any holder in due course on the item against the drawer or maker;
2. Of the payee or any other holder of the item against the drawer or maker either on the item or under the transaction out of which the item arose; and
3. Of the drawer or maker against the payee or any other holder of the item with respect to the transaction out of which the item arose.
Section: Previous 47-4303 47-4401 47-4402 47-4403 47-4404 47-4405 47-4406 47-4407 47-4501 47-4502 47-4503 47-4504 47-4a101 47-4a102 47-4a103 NextLast modified: October 13, 2016