2006 New York Code - Payor Bank\'s Right To Subrogation On Improper Payment.



 
  Section 4--407. Payor Bank's Right to Subrogation on Improper Payment.
    If  a  payor  bank has paid an item over the stop payment order of the
  drawer or maker 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 shall be subrogated to the rights
         (a) of any holder in due course on the item against the drawer or
             maker; and
         (b) 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
         (c) 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.

Disclaimer: These codes may not be the most recent version. New York may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.