§3-1602. Payment
(1). Subject to subsection (2), an instrument is paid to the extent payment is made:
(a). By or on behalf of a party obliged to pay the instrument; and [PL 1993, c. 293, Pt. A, §2 (NEW).]
(b). To a person entitled to enforce the instrument. [PL 1993, c. 293, Pt. A, §2 (NEW).]
To the extent of the payment, the obligation of the party obliged to pay the instrument is discharged even though payment is made with knowledge of a claim to the instrument under section 3-306 by another person.
[PL 1993, c. 293, Pt. A, §2 (NEW).]
(2). The obligation of a party to pay the instrument is not discharged under subsection (1) if:
(a). A claim to the instrument under section 3-1306 is enforceable against the party receiving payment and:
(i) Payment is made with knowledge by the payor that payment is prohibited by injunction or similar process of a court of competent jurisdiction; or
(ii) In the case of an instrument other than a cashier's check, teller's check or certified check, the party making payment accepted, from the person having a claim to the instrument, indemnity against loss resulting from refusal to pay the person entitled to enforce the instrument; or [PL 1993, c. 293, Pt. A, §2 (NEW).]
(b). The person making payment knows that the instrument is a stolen instrument and pays a person that the person making payment knows is in wrongful possession of the instrument. [PL 1993, c. 293, Pt. A, §2 (NEW).]
[PL 1993, c. 293, Pt. A, §2 (NEW).]
SECTION HISTORY
PL 1993, c. 293, §A2 (NEW).