Article 3-A: NEGOTIABLE INSTRUMENTS HEADING: PL 1993, C. 293, PT, A, §2 (NEW)
Part 6: DISCHARGE AND PAYMENT HEADING: PL 1993, C. 293, PT. A, §2 (NEW)
§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 [1993, c. 293, Pt. A, §2 (NEW).]
(b). To a person entitled to enforce the instrument. [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.
[ 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 [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. [1993, c. 293, Pt. A, §2 (NEW).]
Article 3-A: NEGOTIABLE INSTRUMENTS HEADING: PL 1993, C. 293, PT, A, §2 (NEW)
Part 6: DISCHARGE AND PAYMENT HEADING: PL 1993, C. 293, PT. A, §2 (NEW)
§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 [1993, c. 293, Pt. A, §2 (NEW).]
(b). To a person entitled to enforce the instrument. [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.
[ 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 [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. [1993, c. 293, Pt. A, §2 (NEW).]
Article 3-A: NEGOTIABLE INSTRUMENTS HEADING: PL 1993, C. 293, PT, A, §2 (NEW)
Part 6: DISCHARGE AND PAYMENT HEADING: PL 1993, C. 293, PT. A, §2 (NEW)
§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 [1993, c. 293, Pt. A, §2 (NEW).]
(b). To a person entitled to enforce the instrument. [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.
[ 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 [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. [1993, c. 293, Pt. A, §2 (NEW).]
