§490:4-407 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. [L 1965, c 208, §4-407; HRS §490:4-407; am L 1991, c 118, pt of §4]
Section: Previous 490-4-303 490-4-401 490-4-402 490-4-403 490-4-404 490-4-405 490-4-406 490-4-407 490-4-501 490-4-502 490-4-503 490-4-504 490-4a-101 490-4a-102 490-4a-103 NextLast modified: October 27, 2016