554.3418 Payment or acceptance by mistake. 1. Except as provided in subsection 3, if the drawee of a draft pays or accepts the draft and the drawee acted on the mistaken belief that payment of the draft had not been stoppedpursuant to section 554.4403 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 ordinarycare in paying or accepting the draft. 2. Except as provided in subsection 3, if an instrument has been paid or accepted by mistake and the case is not covered by subsection 1, the person paying or accepting may,to the extent permitted by the law governing mistake and restitution, recover the paymentfrom the person to whom or for whose benefit payment was made or in the case of acceptance,may revoke the acceptance. 3. The remedies provided by subsection 1 or 2 may not be asserted against a person who took the instrument in good faith and for value or who in good faith changed position inreliance on the payment 3. The remedies provided by subsection 1 or 2 may not be asserted against a person who 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 554.3417 or 554.4407. 4. Notwithstanding section 554.4215, if an instrument is paid or accepted by mistake and the payor or acceptor recovers payment or revokes acceptance under subsection 1 or 2, theinstrument is deemed not to have been paid or accepted and is treated as dishonored, andthe person from whom payment is recovered has rights as a person entitled to enforce thedishonored instrument. 94 Acts, ch 1167, §65, 121, 122; 2013 Acts, ch 30, §261Referred to in §554.3301 Sat Dec 23 01:57:00 2023 Iowa Code 2024, Section 554.3418 (26, 0)
Iowa Legal Code