The Vermont Statutes Online
The Statutes below include the actions of the 2025 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.
(Cite as: 9A V.S.A. § 3-418)
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§ 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 section 4—403 of this title 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 section 3—417 or 4—407 of this title.
(d) Notwithstanding section 4—215 of this title, 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. (Added 1993, No. 158 (Adj. Sess.), § 12, eff. Jan. 1, 1995.)