Okla. Stat. tit. 12A, § 12A-4-407
This is the official text of Okla. Stat. tit. 12A, § 12A-4-407, part of Oklahoma’s Stat. tit. 12A, — part of the compiled statutory law of Oklahoma, published by the state as "Stat. tit. 12A,." Browse the sections below, each linked to its official government source.
Not legal advice. This page reproduces the official text of a government statute for reference only. Laws change, and how a statute applies depends on your specific facts. For advice about your situation, consult a licensed attorney in your state.
Payor Bank's Right to Subrogation on Improper Payment
Official statutory text
PAYOR BANK'S RIGHT TO SUBROGATION ON IMPROPER PAYMENT
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
Oklahoma Statutes - Title 12A. Uniform Commercial Code Page 352
necessary to prevent loss to the bank by reason of its payment of
the item, the payor bank is subrogated to the rights:
(1) Of any holder in due course on the item against the
drawer or maker;
(2) Of the payee or any other holder of the item against
the drawer or maker either on the item or under
transaction out of which the item arose; and
(3) Of the drawer or maker against the payee or any other
holder of the item with respect to the transaction of
which the item arose.
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
Oklahoma Statutes - Title 12A. Uniform Commercial Code Page 352
necessary to prevent loss to the bank by reason of its payment of
the item, the payor bank is subrogated to the rights:
(1) Of any holder in due course on the item against the
drawer or maker;
(2) Of the payee or any other holder of the item against
the drawer or maker either on the item or under
transaction out of which the item arose; and
(3) Of the drawer or maker against the payee or any other
holder of the item with respect to the transaction of
which the item arose.
Status: in_force · Read it on the official government site
Need a lawyer in Oklahoma?
Find a Oklahoma lawyer
About this page: Statute text is reproduced from official government publishers via the
Open US Law dataset
(Vaquill AI, snapshot v2026.08, CC BY 4.0). Primary legislative text like this is public domain under the government-edicts doctrine
(Georgia v. Public.Resource.Org, 2020). We link every section back to its official source so you can verify it independently.