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Can you summarize IACO 554.3418?
UNIFORM COMMERCIAL CODE > Payment or acceptance by mistake.
Short Summary
This legal provision, found in the Iowa Code under the Uniform Commercial Code, governs the payment or acceptance of drafts and instruments made by mistake. It states that if a drawee pays or accepts a draft under the mistaken belief that payment had not been stopped or that the drawer’s signature was authorized, the drawee may recover the amount from the person who received the payment or, in the case of acceptance, may revoke the acceptance. Similarly, if an instrument has been paid or accepted by mistake and is not covered by the aforementioned scenario, the person who made the payment or acceptance may recover it from the recipient or revoke the acceptance. However, these remedies cannot be asserted against a person who took the instrument in good faith and for value or who changed their position in reliance on the payment or acceptance. It is important to note that this provision does not limit other remedies provided by section 554.3417 or 554.4407. There are no specific penalties mentioned in this document.
Whom does it apply to?
Drawees of drafts, persons paying or accepting instruments
What does it govern?
Payment or acceptance by mistake
What are exemptions?
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 in reliance on the payment or acceptance. This subsection does not limit remedies provided by section 554.3417 or 554.4407.
What are the Penalties?
No specific penalties mentioned.
Jurisdiction
Iowa