70A-4-407 - Payor bank's right to subrogation on improper payment. - Utah Statutes

70A-4-407. Payor bank's right to subrogation on improper payment.
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 objectionby the drawer or maker, to prevent unjust enrichment and only to the extent necessary to preventloss 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 theitem 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 respectto the transaction out of which the item arose.

Amended by Chapter 237, 1993 General Session