§490:4-407  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 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 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. [L 1965, c 208, §4-407; HRS §490:4-407; am L 1991, c 118, pt of §4]