New Jersey § 12a:3-418

§ 12a:3-418.

a. Except as provided in subsection c. of this section, if the drawee of a draft pays

or accepts the draft and the drawee acted on the mistaken belief that payment of the

draft had not been stopped pursuant to 12A:4-403 or 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. of this section, if an instrument has been

paid or accepted by mistake and the case is not covered by subsection a. of this section,

the person paying or accepting may, to the extent permitted by the law governing mistake

and restitution, recover the payment from the person to whom or for whose benefit

payment was made or in the case of acceptance, may revoke the acceptance. c. The remedies provided by subsection a. or b. of this subsection 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 12A:3-417 or 12A:4-407. d. Notwithstanding 12A:4-215, if an instrument is paid or accepted by mistake and

the payor or acceptor recovers payment or revokes acceptance under subsection a. or

b. of this section, 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.