{"data":{"id":"us-ky/krs-355.4-407","jurisdiction":"us-ky","citation":"KRS 355.4-407","heading":"Payor bank's right to subrogation on improper payment.","body":"If a payor bank has paid an item over the order of the drawer or maker to stop payment, or\nafter an account has been closed, or otherwise under circumstances giving a basis for\nobjection by the drawer or maker, to prevent unjust enrichment and only to the extent\nnecessary to prevent loss to the bank by reason of its payment of the item, the payor bank\nis subrogated to the rights\n(1) of any holder in due course on the item against the drawer or maker;\n(2) of the payee or any other holder of the item against the drawer or maker either on\nthe item or under the transaction out of which the item arose; and\n(3) of the drawer or maker against the payee or any other holder of the item with\nrespect to the transaction out of which the item arose.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=33550","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:45Z","sha256":"cf99571fafe802d2ad41d2ec0bbcd5252a92997ccbea045a62fde300e8070cfd","source_id":"us-ky","stale":false,"prev":"us-ky/krs-355.4-406","next":"us-ky/krs-355.4-501"},"notice":"GroundRules: Original legal text. Not legal advice."}