There is a newer version of the Kentucky Revised Statutes
2009 Kentucky Revised Statutes
Article 4 Bank Deposits and Collections
355.4.407 Payor bank's right to subrogation on improper payment.
Download pdfafter 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. Effective: January 1, 1997
History: Amended 1996 Ky. Acts ch. 130, sec. 107, effective January 1, 1997. -- Created 1958 Ky. Acts ch. 77, sec. 4-407, effective July 1, 1960.
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