Florida Statute 674.407 | Lawyer Caselaw & Research

The 2024 Florida Statutes

Title XXXIX
COMMERCIAL RELATIONS

Chapter 674
UNIFORM COMMERCIAL CODE: BANK DEPOSITS AND COLLECTIONS

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F.S. 674.407

674.407 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 the 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:

(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 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.

History.—s. 1, ch. 65-254; s. 44, ch. 92-82.

Note.—s. 4-407, U.C.C.; supersedes s. 659.34.

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Amendments to 674.407

Arrestable Offenses / Crimes under Fla. Stat. 674.407

Level: Degree
Misdemeanor/Felony: First/Second/Third

Current data shows no reason an arrest or criminal charge should have occurred directly under Florida Statute 674.407.

Annotations, Discussions, Cases:

Cases Citing Statute 674.407

Total Results: 6

Banco Bilbao Vizcaya Argentaria v. Easy Luck Co. Inc.

Court: Fla. Dist. Ct. App. | Date Filed: 2017-01-25T00:00:00-08:00

Citation: 208 So. 3d 1241, 91 U.C.C. Rep. Serv. 2d (West) 859, 2017 WL 361944, 2017 Fla. App. LEXIS 718

Snippet: not limit remedies provided by s. 673.4171 or s. 674.407.... (Emphasis added.) The thrust of the statute

SouthTrust Bank v. PartsBase.com, Inc.

Court: Fla. Dist. Ct. App. | Date Filed: 2004-05-12T00:00:00-07:00

Citation: 875 So. 2d 17, 53 U.C.C. Rep. Serv. 2d (West) 598, 2004 Fla. App. LEXIS 6617, 2004 WL 1057717

Snippet: .” U.C.C. § 4-403 cmt. 7 (2000). Under section 674.407: “If a payor bank has paid an item over the order…transaction out of which the item arose.” [e.s.] § 674.407, Fla. Stat. (2000); see also E. PeteRS, A Negotiable…of their liability under [§ 674.403(3) ] and § 674.407].”). The bank’s right to recover from the party… preamble and paragraph (1) of this section [§ 674.407] state this rule.” U.C.C. § 4-407 cmt. 1 (2000)…agreed to the following jury instruction: “Section 674.407 is intended to prevent an unfair loss to a Bank

Earle v. Southeast Bank, N.A.

Court: Fla. Dist. Ct. App. | Date Filed: 1991-12-20T00:00:00-08:00

Citation: 590 So. 2d 1072, 1991 Fla. App. LEXIS 12680, 1991 WL 272646

Snippet: amp; S pursuant to section 674.407, Florida Statutes (1989). Section 674.407 provides that the payor bank…subrogation against itself. Therefore, section 674.407 is not applicable in this instance. *1074The courts

Barnett Bank of Jacksonville v. Warren Finance, Inc.

Court: Fla. Dist. Ct. App. | Date Filed: 1988-10-28T00:53:00-07:00

Citation: 532 So. 2d 676

Snippet: party." [10] Under UCC § 4-407 (section 674.407, Florida Statutes), a payor bank which pays an

Professional Savings Bank v. Galloway Farm Nursery, Inc.

Court: Fla. Dist. Ct. App. | Date Filed: 1987-10-27T00:00:00-08:00

Citation: 514 So. 2d 76, 12 Fla. L. Weekly 2481, 5 U.C.C. Rep. Serv. 2d (West) 138, 1987 Fla. App. LEXIS 10722

Snippet: drawer and against Meyers as payee under section 674.407, Florida Statutes (1985), seeking recovery of the… represents an initial construction of section 674.407, Florida Statutes (1985). We believe that the statute…Commercial Code, and provides in pertinent part: 674.407 Payor bank’s right to subrogation on improper payment

SOUTHEAST FIRST NAT. BK v. Atlantic Telec

Court: Fla. Dist. Ct. App. | Date Filed: 1980-09-24T00:53:00-07:00

Citation: 389 So. 2d 1032

Snippet: 1979). [9] § 673.306, Fla. Stat. (1979). [10] § 674.407, Fla. Stat. (1979); Stuart v. Hertz Corporation