70A-3-602 - Payment.
70A-3-602. Payment.
(1) Subject to Subsection (2), an instrument is paid to the extent payment is made by oron behalf of a party obliged to pay the instrument, and to a person entitled to enforce theinstrument. To the extent of the payment, the obligation of the party obliged to pay theinstrument is discharged even though payment is made with knowledge of a claim to theinstrument under Section 70A-3-306 by another person.
(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 70A-3-306 is enforceable against the partyreceiving payment, and:
(i) payment is made with knowledge by the payor that payment is prohibited byinjunction 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 certifiedcheck, 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
(b) the person making payment knows that the instrument is a stolen instrument and paysa person it knows is in wrongful possession of the instrument.
Repealed and Re-enacted by Chapter 237, 1993 General Session