Home Table of Contents

§ 4-407. Payor Bank's Right to Subrogation on Improper Payment

Oklahoma Statutes AnnotatedTitle 12A. Commercial Code

Oklahoma Statutes Annotated
Title 12a. Commercial Code (Refs & Annos)
Article 4. Bank Deposits and Collections (Refs & Annos)
Part 4. Relationship Between Payor Bank and Its Customer
12A Okl.St.Ann. § 4-407
§ 4-407. Payor Bank's Right to Subrogation on Improper Payment
Currentness
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 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 of which the item arose.

Credits

Laws 1991, c. 117, § 129, eff. Jan. 1, 1992.
12A Okl. St. Ann. § 4-407, OK ST T. 12A § 4-407
Current with emergency effective legislation through Chapter 257 of the Second Regular Session of the 59th Legislature (2024). Some sections may be more current, see credits for details.
End of Document