§ 25-3-418. Payment or acceptance by mistake. - North Carolina Statutes

§25‑3‑418.  Payment or acceptance by mistake.

(a)        Except as providedin subsection (c) of this section, if the drawee of a draft pays or accepts thedraft and the drawee acted on the mistaken belief that (i) payment of the drafthad not been stopped pursuant to G.S. 25‑4‑403 or (ii) thesignature of the drawer of the draft was authorized, the drawee may recover theamount of the draft from the person to whom or for whose benefit payment wasmade or, in the case of acceptance, may revoke the acceptance. Rights of thedrawee under this subsection are not affected by failure of the drawee toexercise ordinary care in paying or accepting the draft.

(b)        Except as providedin subsection (c) of this section, if an instrument has been paid or acceptedby mistake and the case is not covered by subsection (a) of this section, theperson paying or accepting may, to the extent permitted by the law governingmistake and restitution, (i) recover the payment from the person to whom or forwhose benefit payment was made or (ii) in the case of acceptance, may revokethe acceptance.

(c)        The remediesprovided by subsection (a) or (b) of this section may not be asserted against aperson who took the instrument in good faith and for value or who in good faithchanged position in reliance on the payment or acceptance. This subsection doesnot limit remedies provided by G.S. 25‑3‑417, 25‑4‑208[25‑4‑207.1], or 25‑4‑407.

(d)        NotwithstandingG.S. 25‑4‑215 [25‑4‑213], if an instrument is paid oraccepted by mistake and the payor or acceptor recovers payment or revokesacceptance under subsection (a) or (b) of this section, the instrument isdeemed not to have been paid or accepted and is treated as dishonored, and theperson from whom payment is recovered has rights as a person entitled toenforce the dishonored instrument. (1899, c. 733, s. 62; Rev.,s. 2211; C.S., s. 3043; 1965, c. 700, s. 1; 1995, c. 232, s. 1.)