§ 41-03-55 — (3-418) Payment or acceptance by mistake

1. Except as provided in subsection 3, if the drawee of a draft pays or accepts the draft
and the drawee acted on the mistaken belief that payment of the draft had not been
stopped under section 41-04-34 or that the signature of the purported 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.
2. Except as provided in subsection 3, if an instrument has been paid or accepted by
mistake and the case is not covered by subsection 1, 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.
3. The remedies provided by subsection 1 or 2 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 41-03-54 or 41-04-38.
4. Notwithstanding section 41-04-27, if an instrument is paid or accepted by mistake and
the payor or acceptor recovers payment or revokes acceptance under subsection 1 or
2, 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.