§ 34.1-3-418 — Payment or acceptance by mistake

(a) 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 34.1-4-403 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) 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,
(1) recover the payment from the person to whom or for whose
benefit payment was made or (2) in the case of acceptance, may
revoke the acceptance.
(c) 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 34.1-3-417 or 34.1-4-407.
(d) Notwithstanding section 34.1-4-215, 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.