§490:3-602  Payment.  (a)  Subject to
subsection (b), an instrument is paid to the extent payment is made (i) by or
on behalf of a party obliged to pay the instrument, and (ii) 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
490:3-306 by another person.



(b)  The obligation of a party to pay the
instrument is not discharged under subsection (a) if:



(1)  A claim to the instrument under section 490:3-306
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



(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. [L 1991, c 118, pt of §1]