§ 6A-3-418 - Payment or acceptance by mistake.
SECTION 6A-3-418
§ 6A-3-418 Payment or acceptance bymistake. – (a) Except as provided in subsection (c), if the drawee of a draft pays oraccepts the draft and the drawee acted on the mistaken belief that (i) paymentof the draft had not been stopped pursuant to § 6A-4-403 or (ii) thesignature of the drawer of the draft was authorized, the drawee may recover theamount of the draft from the person to whom or for whose benefit payment wasmade or, in the case of acceptance, may revoke the acceptance. Rights of thedrawee under this subsection are not affected by failure of the drawee toexercise ordinary care in paying or accepting the draft.
(b) Except as provided in subsection (c), if an instrumenthas been paid or accepted by mistake and the case is not covered by subsection(a), the person paying or accepting may, to the extent permitted by the lawgoverning mistake and restitution, (i) recover the payment from the person towhom or for whose benefit payment was made or (ii) in the case of acceptance,may revoke the acceptance.
(c) The remedies provided by subsection (a) or (b) may not beasserted against a person who took the instrument in good faith and for valueor who in good faith changed position in reliance on the payment or acceptance.This subsection does not limit remedies provided by § 6A-3-417 or 6A-4-407.
(d) Notwithstanding § 6A-4-215, if an instrument is paidor accepted by mistake and the payor or acceptor recovers payment or revokesacceptance under subsection (a) or (b), the instrument is deemed not to havebeen paid or accepted and is treated as dishonored, and the person from whompayment is recovered has rights as a person entitled to enforce the dishonoredinstrument.