25-3-418. Payment or acceptance by mistake.
(a) Except as provided in subsection (c) of this section, if the drawee of a draft pays or accepts the draft and the drawee acted on the mistaken belief that (i) payment of the draft had not been stopped pursuant to G.S. 25-4-403 or (ii) 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) of this section, if an instrument has been paid or accepted by mistake and the case is not covered by subsection (a) of this section, the person paying or accepting may, to the extent permitted by the law governing mistake and restitution, (i) recover the payment from the person to whom or for whose benefit payment was made or (ii) in the case of acceptance, may revoke the acceptance.
(c) The remedies provided by subsection (a) or (b) of this section 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 G.S. 25-3-417, 25-4-208 [25-4-207.1], or 25-4-407.
(d) Notwithstanding G.S. 25-4-215 [25-4-213], if an instrument is paid or accepted by mistake and the payor or acceptor recovers payment or revokes acceptance under subsection (a) or (b) of this section, 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. (1899, c. 733, s. 62; Rev., s. 2211; C.S., s. 3043; 1965, c. 700, s. 1; 1995, c. 232, s. 1.)
Structure North Carolina General Statutes
North Carolina General Statutes
Chapter 25 - Uniform Commercial Code
Article 3 - Negotiable Instruments.
§ 25-3-104 - Negotiable instrument.
§ 25-3-105 - Issue of instrument.
§ 25-3-106 - Unconditional promise or order.
§ 25-3-107 - Instrument payable in foreign money.
§ 25-3-108 - Payable on demand or at definite time.
§ 25-3-109 - Payable to bearer or to order.
§ 25-3-110 - Identification of person to whom instrument is payable.
§ 25-3-111 - Place of payment.
§ 25-3-113 - Date of instrument.
§ 25-3-114 - Contradictory terms of instrument.
§ 25-3-115 - Incomplete instrument.
§ 25-3-116 - Joint and several liability; contribution.
§ 25-3-117 - Other agreements affecting instrument.
§ 25-3-118 - Statute of limitations.
§ 25-3-119 - Notice of right to defend action.
§ 25-3-202 - Negotiation subject to rescission.
§ 25-3-203 - Transfer of instrument; rights acquired by transfer.
§ 25-3-205 - Special indorsement; blank indorsement; anomalous indorsement.
§ 25-3-206 - Restrictive indorsement.
§ 25-3-301 - Person entitled to enforce instrument.
§ 25-3-302 - Holder in due course.
§ 25-3-303 - Value and consideration.
§ 25-3-304 - Overdue instrument.
§ 25-3-305 - Defenses and claims in recoupment.
§ 25-3-306 - Claims to an instrument.
§ 25-3-307 - Notice of breach of fiduciary duty.
§ 25-3-308 - Proof of signatures and status as holder in due course.
§ 25-3-309 - Enforcement of lost, destroyed, or stolen instrument.
§ 25-3-310 - Effect of instrument on obligation for which taken.
§ 25-3-311 - Accord and satisfaction by use of instrument.
§ 25-3-312 - Lost, destroyed, or stolen cashier's check, teller's check, or certified check.
§ 25-3-402 - Signature by representative.
§ 25-3-403 - Unauthorized signature.
§ 25-3-404 - Impostors; fictitious payees.
§ 25-3-405 - Employer's responsibility for fraudulent indorsement by employee.
§ 25-3-406 - Negligence contributing to forged signature or alteration of instrument.
§ 25-3-408 - Drawee not liable on unaccepted draft.
§ 25-3-409 - Acceptance of draft; certified check.
§ 25-3-410 - Acceptance varying draft.
§ 25-3-411 - Refusal to pay cashier's checks, teller's checks, and certified checks.
§ 25-3-412 - Obligation of issuer of note or cashier's check.
§ 25-3-413 - Obligation of acceptor.
§ 25-3-414 - Obligation of drawer.
§ 25-3-415 - Obligation of indorser.
§ 25-3-416 - Transfer warranties.
§ 25-3-417 - Presentment warranties.
§ 25-3-418 - Payment or acceptance by mistake.
§ 25-3-419 - Instruments signed for accommodation.
§ 25-3-420 - Conversion of instrument.
§ 25-3-503 - Notice of dishonor.
§ 25-3-504 - Excused presentment and notice of dishonor.
§ 25-3-505 - Evidence of dishonor.
§ 25-3-506 - Collection of processing fee for returned checks.
§ 25-3-601 - Discharge and effect of discharge.
§ 25-3-603 - Tender of payment.
§ 25-3-604 - Discharge by cancellation or renunciation.
§ 25-3-605 - Discharge of indorsers and accommodation parties.