Skip to navigation Skip to content Skip to subnav
Searching 2023-2024 Session

The Vermont Statutes Online

The Vermont Statutes Online have been updated to include the actions of the 2023 session of the General Assembly.

NOTE: The Vermont Statutes Online is an unofficial copy of the Vermont Statutes Annotated that is provided as a convenience.

Title 9A : Uniform Commercial Code

Article 004 : Bank Deposits and Collections

(Cite as: 9A V.S.A. § 4-407)
  • § 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 objection by the drawer or maker, to prevent unjust enrichment and only to the extent necessary to prevent loss 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 the item 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 respect to the transaction out of which the item arose. (Added 1993, No. 158 (Adj. Sess.), § 13, eff. Jan. 1, 1995.)