(a) Subject to subsection (b), an instrument is paid to the extent payment ismade (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 eventhough payment is made with knowledge of a claim to the instrument under §8.3A-306 by another person.
(b) The obligation of a party to pay the instrument is not discharged undersubsection (a) if:
(1) a claim to the instrument under § 8.3A-306 is enforceable against theparty receiving payment and (i) payment is made with knowledge by the payorthat payment is prohibited by injunction or similar process of a court ofcompetent jurisdiction, or (ii) in the case of an instrument other than acashier's check, teller's check, or certified check, the party making paymentaccepted, from the person having a claim to the instrument, indemnity againstloss resulting from refusal to pay the person entitled to enforce theinstrument; or
(2) the person making payment knows that the instrument is a stoleninstrument and pays a person it knows is in wrongful possession of theinstrument.
(c) Within 90 days following payment in full of the obligation represented byan instrument, the holder of the instrument shall return it to the maker orhis agent, unless it no longer is in existence. If the instrument no longeris in existence, upon request from the maker or his agent, the holder shallgive written confirmation that the instrument no longer is in existence andthe obligation has been paid in full, within 90 days of such request. In suchevent the holder shall be deemed to have satisfied its obligation under thissubsection.
(Code 1950, §§ 6-403, 6-472, 6-473, 6-524 through 6-530; 1964, c. 219, §8.3-603; 1992, c. 693; 2003, c. 342.)
(a) Subject to subsection (b), an instrument is paid to the extent payment ismade (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 eventhough payment is made with knowledge of a claim to the instrument under §8.3A-306 by another person.
(b) The obligation of a party to pay the instrument is not discharged undersubsection (a) if:
(1) a claim to the instrument under § 8.3A-306 is enforceable against theparty receiving payment and (i) payment is made with knowledge by the payorthat payment is prohibited by injunction or similar process of a court ofcompetent jurisdiction, or (ii) in the case of an instrument other than acashier's check, teller's check, or certified check, the party making paymentaccepted, from the person having a claim to the instrument, indemnity againstloss resulting from refusal to pay the person entitled to enforce theinstrument; or
(2) the person making payment knows that the instrument is a stoleninstrument and pays a person it knows is in wrongful possession of theinstrument.
(c) Within 90 days following payment in full of the obligation represented byan instrument, the holder of the instrument shall return it to the maker orhis agent, unless it no longer is in existence. If the instrument no longeris in existence, upon request from the maker or his agent, the holder shallgive written confirmation that the instrument no longer is in existence andthe obligation has been paid in full, within 90 days of such request. In suchevent the holder shall be deemed to have satisfied its obligation under thissubsection.
(Code 1950, §§ 6-403, 6-472, 6-473, 6-524 through 6-530; 1964, c. 219, §8.3-603; 1992, c. 693; 2003, c. 342.)
(a) Subject to subsection (b), an instrument is paid to the extent payment ismade (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 eventhough payment is made with knowledge of a claim to the instrument under §8.3A-306 by another person.
(b) The obligation of a party to pay the instrument is not discharged undersubsection (a) if:
(1) a claim to the instrument under § 8.3A-306 is enforceable against theparty receiving payment and (i) payment is made with knowledge by the payorthat payment is prohibited by injunction or similar process of a court ofcompetent jurisdiction, or (ii) in the case of an instrument other than acashier's check, teller's check, or certified check, the party making paymentaccepted, from the person having a claim to the instrument, indemnity againstloss resulting from refusal to pay the person entitled to enforce theinstrument; or
(2) the person making payment knows that the instrument is a stoleninstrument and pays a person it knows is in wrongful possession of theinstrument.
(c) Within 90 days following payment in full of the obligation represented byan instrument, the holder of the instrument shall return it to the maker orhis agent, unless it no longer is in existence. If the instrument no longeris in existence, upon request from the maker or his agent, the holder shallgive written confirmation that the instrument no longer is in existence andthe obligation has been paid in full, within 90 days of such request. In suchevent the holder shall be deemed to have satisfied its obligation under thissubsection.
(Code 1950, §§ 6-403, 6-472, 6-473, 6-524 through 6-530; 1964, c. 219, §8.3-603; 1992, c. 693; 2003, c. 342.)
