The 2023 Florida Statutes (including Special Session C)

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.

F.S. 674.407 on Google Scholar

F.S. 674.407 on Casetext

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 from cite.case.law:

BANCO BILBAO VIZCAYA ARGENTARIA, v. EASY LUCK CO. INC., 208 So. 3d 1241 (Fla. Dist. Ct. App. 2017)

. . . This subsection does not limit remedies provided by s. 673.4171 or s. 674.407.... (Emphasis added.) . . .

SOUTHTRUST BANK, v. PARTSBASE. COM, INC., 875 So. 2d 17 (Fla. Dist. Ct. App. 2004)

. . . Under section 674.407: “If a payor bank has paid an item over the order of the drawer or maker to stop . . . [e.s.] § 674.407, Fla. Stat. (2000); see also E. . . . stop orders under [§ 674.403(1) ] was the limitation of their liability under [§ 674.403(3) ] and § 674.407 . . . The preamble and paragraph (1) of this section [§ 674.407] state this rule.” . . . Drawer also agreed to the following jury instruction: “Section 674.407 is intended to prevent an unfair . . .

EARLE, v. SOUTHEAST BANK, N. A., 590 So. 2d 1072 (Fla. Dist. Ct. App. 1991)

. . . Southeast argues that it is entitled to be subrogated to the rights of C & S pursuant to section 674.407 . . . Section 674.407 provides that the payor bank shall be subrogated to the rights of any holder in due course . . . Therefore, section 674.407 is not applicable in this instance. . . .

BARNETT BANK OF JACKSONVILLE, N. A. a v. WARREN FINANCE, INC. a, 532 So. 2d 676 (Fla. Dist. Ct. App. 1988)

. . . Under UCC § 4-407 (section 674.407, Florida Statutes), a payor bank which pays an item over a stop-payment . . .

PROFESSIONAL SAVINGS BANK, a f k a v. GALLOWAY FARM NURSERY, INC. a, 514 So. 2d 76 (Fla. Dist. Ct. App. 1987)

. . . Professional brought an action against Galloway as drawer and against Meyers as payee under section 674.407 . . . This case represents an initial construction of section 674.407, Florida Statutes (1985). . . . The statute is adopted from section 4-407, Uniform Commercial Code, and provides in pertinent part: 674.407 . . .

SOUTHEAST FIRST NATIONAL BANK OF SATELLITE BEACH, a v. ATLANTIC TELEC, INC. a, 389 So. 2d 1032 (Fla. Dist. Ct. App. 1980)

. . . . § 674.407, Fla.Stat. (1979); Stuart v. Hertz Corporation, 302 So.2d 187 (Fla. 4th DCA 1974). . . . .