2010 Pennsylvania Code
Title 13 - COMMERCIAL CODE
Chapter 34 - Liability of Parties
3418 - Payment or acceptance by mistake.

     § 3418.  Payment or acceptance by mistake.
        (a)  General rule.--Except as provided in subsection (c), if
     the drawee of a draft pays or accepts the draft and the drawee
     acted on the mistaken belief that:
            (1)  payment of the draft had not been stopped pursuant
        to section 4403 (relating to right of customer to stop
        payment; burden of proof of loss); or
            (2)  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)  Other cases.--Except as provided in subsection (c), if
     an instrument has been paid or accepted by mistake and the case
     is not covered by subsection (a), the person paying or accepting
     may, to the extent permitted by the law governing mistake and
     restitution, recover the payment from the person to whom or for
     whose benefit payment was made or, in the case of acceptance,
     may revoke the acceptance.
        (c)  Limitation on remedies.--The remedies provided by
     subsection (a) or (b) 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 section 3417
     (relating to presentment warranties) or 4407 (relating to right
     of payor bank to subrogation on improper payment).
        (d)  Under certain circumstances an instrument is deemed
     dishonored.--Notwithstanding section 4215 (relating to final
     payment of item by payor bank; when provisional debits and
     credits become final; when certain credits become available for
     withdrawal), if an instrument is paid or accepted by mistake and
     the payor or acceptor recovers payment or revokes acceptance
     under subsection (a) or (b), 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.

        Cross References.  Section 3418 is referred to in section
     3301 of this title.