Com. Code, § 4407 · Chapter 4. Relationship Between Payor Bank and Its Customer
Com. Code, § 4407
Text — As published in the Legislative Counsel's database, tables dated October 18, 2026 (pubinfo_2025.zip)
If a payor bank has paid an item over the order of the drawer or maker to stop payment, or after an account has been closed, or otherwise under circumstances giving a basis for objection by the drawer or maker, to prevent unjust enrichment and only to the extent necessary to prevent loss to the bank by reason of its payment of the item, the payor bank is subrogated to the rights of all of the following:
(a) Of any holder in due course on the item against the drawer or maker.
(b) Of the payee or any other holder of the item against the drawer or maker either on the item or under the transaction out of which the item arose.
(c) Of the drawer or maker against the payee or any other holder of the item with respect to the transaction out of which the item arose.
Notes and commentary — not statutory text
History
Amended by Stats. 1992, Ch. 914, Sec. 46. Effective January 1, 1993.
Source of truth
- Edition
- As published in the Legislative Counsel's database, tables dated October 18, 2026 (pubinfo_2025.zip)
- Official file
- https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=COM§ionNum=4407.
- Text hash
- sha256 c5ca63a54089b35ab04c3d7f43fb1e14aa150b3e21b2f07324ffd4b19fde6547
- Composed by
- compose_ca.py 2026-10-22: the Legislative Counsel's CAML content files read by a tokenizer (caml_readers.reader_a); an independent xml.etree reading (caml_readers.reader_b) agrees on every section
Cited by 1 provision
Provisions in this library whose text cites Com. Code, § 4407. Each shows the citation as that text prints it.
Commercial Code
Procedural information only. Not legal advice and not a substitute for the advice of an attorney. Confirm the current text with the official publisher before relying on it.