ORS 74.4070¹
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]

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)

1 Legislative Counsel Committee, CHAPTER 74—Bank Deposits and Collections, https://­www.­oregonlegislature.­gov/­bills_laws/­Archive/­2007ors74.­pdf (2007) (last ac­cessed Feb. 12, 2009).
2 Legislative Counsel Committee, Annotations to the Oregon Revised Stat­utes, Cumulative Supplement - 2007, Chapter 74, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­074ano.­htm (2007) (last ac­cessed Feb. 12, 2009).
3 OregonLaws.org assembles these lists by analyzing references between Sections. Each listed item refers back to the current Section in its own text. The result reveals relationships in the code that may not have otherwise been apparent. Currency Information