400.3-418. Payment or acceptance by mistake. - Missouri Statutes

Payment or acceptance by mistake.

400.3-418. (a) Except as provided in subsection (c), ifthe drawee of a draft pays or accepts the draft and the draweeacted on the mistaken belief that (i) payment of the draft hadnot been stopped pursuant to Section 400.4-403 or (ii) thesignature of the drawer of the draft was authorized, the draweemay recover the amount of the draft from the person to whom orfor whose benefit payment was made or, in the case of acceptance,may revoke the acceptance. Rights of the drawee under thissubsection are not affected by failure of the drawee to exerciseordinary care in paying or accepting the draft.

(b) Except as provided in subsection (c), if an instrumenthas been paid or accepted by mistake and the case is not coveredby subsection (a), the person paying or accepting may, to theextent permitted by the law governing mistake and restitution,(i) recover the payment from the person to whom or for whosebenefit payment was made or (ii) in the case of acceptance, mayrevoke the acceptance.

(c) The remedies provided by subsection (a) or (b) may notbe asserted against a person who took the instrument in goodfaith and for value or who in good faith changed position inreliance on the payment or acceptance. This subsection does notlimit remedies provided by Section 400.3-417 or 400.4-407.

(d) Notwithstanding Section 400.4-215, if an instrument ispaid or accepted by mistake and the payor or acceptor recoverspayment or revokes acceptance under subsection (a) or (b), theinstrument is deemed not to have been paid or accepted and istreated as dishonored, and the person from whom payment isrecovered has rights as a person entitled to enforce thedishonored instrument.

(L. 1963 p. 503 § 3-418, A.L. 1992 S.B. 448)