(a) Except as provided in subsection (c) of this section, if the drawee of a draft
pays or accepts the draft and the drawee acted on the mistaken belief that (i) payment
of the draft had not been stopped pursuant to G.S. 25-4-403 or (ii) the signature of the drawer of the draft was authorized, the drawee may recover
the amount of the draft from the person to whom or for whose benefit payment was made
or, in the case of acceptance, may revoke the acceptance. Rights of the drawee under this subsection are not affected by failure of the drawee
to exercise ordinary care in paying or accepting the draft.
(b) Except as provided in subsection (c) of this section, if an instrument has been
paid or accepted by mistake and the case is not covered by subsection (a) of this
section, the person paying or accepting may, to the extent permitted by the law governing
mistake and restitution, (i) recover the payment from the person to whom 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) of this section may not be asserted
against a person who took the instrument in good faith and for value or who in good
faith changed position in reliance on the payment or acceptance. This subsection does not limit remedies provided by G.S. 25-3-417, 25-4-208 [25-4-207.1], or 25-4-407.
(d) Notwithstanding G.S. 25-4-215 [25-4-213], if an instrument is paid or accepted by mistake and the payor or acceptor
recovers payment or revokes acceptance under subsection (a) or (b) of this section,
the instrument is deemed not to have been paid or accepted and is treated as dishonored,
and the person from whom payment is recovered has rights as a person entitled to enforce
the dishonored instrument.
FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature or via Westlaw before relying on it for your legal needs.
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