                                 CODE OF VIRGINIA

PAYMENT OR ACCEPTANCE BY MISTAKE (§ 8.3A-418)

a. Except as provided in subsection (c), if the drawee of a draft pays or
accepts the draft and the drawee acted on the mistaken belief that (i) payment
of the draft had not been stopped pursuant to &#xA7; 8.4-403 or (ii) the
signature of the drawer of the draft was authorized, the drawee may recover the
amount of the draft from the person to whom or for whose benefit payment was
made or, in the case of acceptance, may revoke the acceptance. Rights of the
drawee under this subsection are not affected by failure of the drawee to
exercise ordinary care in paying or accepting the draft.

b. Except as provided in subsection (c), if an instrument has been paid or
accepted by mistake and the case is not covered by subsection (a), the person
paying or accepting may, to the extent permitted by the law governing mistake
and restitution, (i) recover the payment from the person to whom or for whose
benefit payment was made or (ii) in the case of acceptance, may revoke the
acceptance.

c. The remedies provided by subsection (a) or (b) may not be asserted against a
person who took the instrument in good faith and for value or who in good faith
changed position in reliance on the payment or acceptance. This subsection does
not limit remedies provided by &#xA7; 8.3A-417 or &#xA7; 8.4-407.

d. Notwithstanding &#xA7; 8.4-213, if an instrument is paid or accepted by
mistake and the payor or acceptor recovers payment or revokes acceptance under
subsection (a) or (b), the instrument is deemed not to have been paid or
accepted and is treated as dishonored, and the person from whom payment is
recovered has rights as a person entitled to enforce the dishonored instrument.

HISTORY: Code 1950, § 6-414; 1964, c. 219, § 8.3-418; 1992, c. 693.