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Can you summarize MNST 336.3-418?
UNIFORM COMMERCIAL CODE > PAYMENT OR ACCEPTANCE BY MISTAKE.
Short Summary
This legal provision, under the Minnesota Statutes, specifically under the Uniform Commercial Code, governs the payment or acceptance of drafts or instruments by mistake. It outlines the circumstances under which a drawee of a draft can recover the amount of the draft from the person to whom payment was made or revoke the acceptance if the drawee acted on the mistaken belief that the payment had not been stopped or the drawer’s signature was authorized. Similarly, if an instrument has been paid or accepted by mistake, the person paying or accepting may recover the payment 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 position in reliance on the payment or acceptance. The document does not mention specific penalties for non-compliance or violation. This provision was repealed in 1992.
Whom does it apply to?
Drawees of drafts, persons who pay or accept instruments
What does it govern?
Payment or acceptance by mistake
What are exemptions?
The remedies provided by subsection (a) or (b) 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 336.3-417 or 336.4-407.
What are the Penalties?
No specific penalties mentioned.
Jurisdiction
Minnesota