North Dakota § 41-04-38 - (4-407) Payor bank's right to subrogation on improper payment
Full text of North Dakota North Dakota Century Code § 41-04-38 — (4-407) Payor bank's right to subrogation on improper payment, with citation guidance and answers to common questions.
§ 41-04-38. (4-407) Payor bank's right to subrogation on improper payment
If a payor bank has paid an item over the stop payment order of the drawer or maker, 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 of: 1. Any holder in due course on the item against the drawer or maker. 2. 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. 3. 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.
Source: official North Dakota text · Last verified 2026-08-27
Frequently Asked Questions About North Dakota § 41-04-38
What does North Dakota Century Code § 41-04-38 cover?
Section 41-04-38 ("(4-407) Payor bank's right to subrogation on improper payment") is part of the North Dakota Century Code, the codified statutory law of North Dakota. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite North Dakota § 41-04-38?
A common citation format is "North Dakota Century Code § 41-04-38" (North Dakota). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of North Dakota law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the North Dakota official source linked on this page or consult a licensed North Dakota attorney.
How does North Dakota § 41-04-38 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in North Dakota can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in North Dakota.