§ 41-04-38 — (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
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 shall be
subrogated to the rights of:
1. Any holder in due course on the item against the drawer or maker.
2. 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.
3. 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.