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.
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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