70A-3-418 - Payment or acceptance by mistake. - Utah Statutes

70A-3-418. Payment or acceptance by mistake.
(1) Except as provided in Subsection (3), if the drawee of a draft pays or accepts the draftand the drawee acted on the mistaken belief that payment of the draft had not been stoppedpursuant to Section 70A-4-403, or the signature of the drawer of the draft was authorized, thedrawee may recover the amount of the draft from the person to whom or for whose benefitpayment was made or, in the case of acceptance, may revoke the acceptance. Rights of thedrawee under this subsection are not affected by failure of the drawee to exercise ordinary care inpaying or accepting the draft.
(2) Except as provided in Subsection (3), if an instrument has been paid or accepted bymistake and the case is not covered by Subsection (1), the person paying or accepting may, to theextent permitted by the law governing mistake and restitution, recover the payment from theperson to whom or for whose benefit payment was made, or in the case of acceptance, mayrevoke the acceptance.
(3) The remedies provided by Subsection (1) or (2) may not be asserted against a personwho took the instrument in good faith and for value or who in good faith changed position inreliance on the payment or acceptance. This subsection does not limit remedies provided bySection 70A-3-417 or 70A-4-407.
(4) Notwithstanding Section 70A-4-215, if an instrument is paid or accepted by mistakeand the payor or acceptor recovers payment or revokes acceptance under Subsection (1) or (2),the instrument is deemed 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 to enforce the dishonoredinstrument.

Repealed and Re-enacted by Chapter 237, 1993 General Session