Pennsylvania § 3418 Payment or acceptance by mistake

Pennsylvania Statutes

§ 3418 — Payment or acceptance by mistake

Pennsylvania § 3418

Title 13COMMERCIAL CODE

Ch. 34LIABILITY OF PARTIES

This text of Pennsylvania § 3418 (Payment or acceptance by mistake) 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. § 3418 (2026).

Text

(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

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(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.