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Can you summarize NHRS 382-A:3-418?
UNIFORM COMMERCIAL CODE > Payment or Acceptance by Mistake.
Short Summary
This legal provision, part of the New Hampshire Revised Statutes under the Uniform Commercial Code, governs the payment or acceptance of drafts or instruments made by mistake. 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 circumstances, the person who made the payment or acceptance 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. It is important to note that this provision does not limit other remedies provided by Section 3-417 or 4-407. No specific penalties are mentioned in this document.
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 3-417 or 4-407.
What are the Penalties?
No specific penalties mentioned.
Jurisdiction
New Hampshire