South Carolina § 36-4-407 Payor bank's right to subrogation on improper payment.

South Carolina Statutes

§ 36-4-407 — Payor bank's right to subrogation on improper payment.

South Carolina § 36-4-407

Title 36COMMERCIAL CODE

Ch. 4COMMERCIAL CODE—BANK DEPOSITS AND COLLECTIONS

This text of South Carolina § 36-4-407 (Payor bank's right to subrogation on improper payment.) is published on Counsel Stack Legal Research, covering South Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

S.C. Code Ann. § 36-4-407 (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.

Legislative History

HISTORY: 1962 Code SECTION 10.4-407; 1966 (54) 2716; 2008 Act No. 204, SECTION 3, eff July 1, 2008. Part 5 Collection of Documentary Drafts Editor's Note 2008 Act No. 204, SECTION 1, provides in part as follows: "The South Carolina Reporters' Comments contained in Chapters 3 and 4 of Title 36, may not be reproduced in whole or in part in any form or for inclusions in any material which is offered for sale without the express written permission of the Clerk of the South Carolina Senate." 2008 Act No. 204, SECTION 4.A, provides as follows: "This act applies to a transaction occurring on or after the effective date [July 1, 2008] of this act. This act does not apply to a transaction or event, or obligation or duty arising out of or associated with a transaction or event, before the effective date of this act." 2008 Act No. 204, SECTION 4.B, provides as follows: "A transaction occurring before the effective date [July 1, 2008] of this act and the rights, obligations, and interests flowing from that transaction are governed by any statute or other law amended or repealed by this act as if repeal or amendment had not occurred and may be terminated, completed, consummated, or enforced under that statute or other law."