47-3602. Payment
A. Subject to subsection B of this section, an instrument is paid to the extent
payment is made by or on behalf of a party obliged to pay the instrument and to a person
entitled to enforce the instrument. 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 47-3306 by another person.
B. The obligation of a party to pay the instrument is not discharged under
subsection A of this section if:
1. A claim to the instrument under section 47-3306 is enforceable against the party
receiving payment and:
(a) Payment is made with knowledge by the payor that payment is prohibited by
injunction or similar process of a court of competent jurisdiction; or
(b) 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
2. The person making payment knows that the instrument is a stolen instrument and
pays a person it knows is in wrongful possession of the instrument.
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