Pennsylvania § 4407 Right of payor bank to subrogation on improper payment

Pennsylvania Statutes

§ 4407 — Right of payor bank to subrogation on improper payment

Pennsylvania § 4407

Title 13COMMERCIAL CODE

Ch. 44RELATIONSHIP BETWEEN PAYOR BANK

This text of Pennsylvania § 4407 (Right of payor bank to subrogation on improper payment) is published on Counsel Stack Legal Research, covering Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

13 Pa. Cons. Stat. § 4407 (2026).

Text

If a payor bank has paid an item over the order of the drawer or maker to stop payment, 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 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.

Free access — add to your briefcase to read the full text and ask questions with AI

If a payor bank has paid an item over the order of the drawer or maker to stop payment, 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 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.