ORS 74.4070
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 necessary to prevent loss to the bank by reason of its payment of the item, the payor bank shall be subrogated to the rights:

(1)

Of any holder in due course on the item against the drawer or maker; and

(2)

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; and

(3)

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. [1961 c.726 §74.4070 (Payor bank’s right to subrogation on improper payment); 1993 c.545 §109]

Source: Section 74.4070 — Payor bank’s right to subrogation on improper payment, https://www.­oregonlegislature.­gov/bills_laws/ors/ors074.­html.

Notes of Decisions

In action to collect from bank funds paid on checks bearing forged drawer signatures, bank’s obligation to plaintiff was primary rather than secondary and accordingly not discharged by alleged agreement of civil compromise. SCCI, Inc. v. U.S. National Bank, 78 Or App 176, 714 P2d 1113 (1986)

74.1010
Short title
74.1020
Applicability
74.1030
Variation by agreement
74.1040
Definitions and index of definitions
74.1050
“Bank”
74.1060
Payable through or payable at bank
74.1070
Separate office of bank for computing time for actions, notices and orders
74.1080
Time of receipt of items
74.1090
Waiver of time limits
74.1110
Statute of limitations
74.1120
Electronic presentment
74.2010
Status of collecting bank as agent and provisional status of credits
74.2020
Responsibility for collection
74.2030
Effect of instructions
74.2040
Methods of sending and presenting
74.2050
Depositary bank as holder of unindorsed item
74.2060
Transfer between banks
74.2070
Warranties of customer and collecting bank on transfer of item
74.2080
Presentment warranties
74.2090
Encoding and retention warranties
74.2100
Security interest of collecting bank in items
74.2110
Bank as holder in due course
74.2120
Presentment by notice of item not payable by, through or at bank
74.2130
Medium and time of settlement by bank
74.2140
Right of charge-back or refund
74.2150
Final payment of item by payor bank
74.2160
Insolvency and preference
74.3010
Deferred posting
74.3020
Payor bank’s responsibility for late return of item
74.3030
When items subject to notice, stop payment order, legal process or setoff
74.4010
When bank may charge customer’s account
74.4020
Bank’s liability to customer for wrongful dishonor
74.4030
Customer’s right to stop payment
74.4040
Bank not obligated to pay check more than six months old
74.4050
Death or incompetence of customer
74.4060
Statements to customer
74.4070
Payor bank’s right to subrogation on improper payment
74.5010
Handling of documentary drafts
74.5020
Presentment of “on arrival” drafts
74.5030
Responsibility of presenting bank for documents and goods
74.5040
Privilege of presenting bank to deal with goods
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