400.3-602. Payment. - Missouri Statutes

Payment.

400.3-602. (a) Subject to subsection (b), an instrument ispaid to the extent payment is made (i) by or on behalf of a partyobliged to pay the instrument, and (ii) to a person entitled toenforce the instrument. To the extent of the payment, theobligation of the party obliged to pay the instrument isdischarged even though payment is made with knowledge of a claimto the instrument under Section 400.3-306 by another person.

(b) The obligation of a party to pay the instrument is notdischarged under subsection (a) if:

(1) a claim to the instrument under Section 400.3-306 isenforceable against the party receiving payment and (i) paymentis made with knowledge by the payor that payment is prohibited byinjunction or similar process of a court of competentjurisdiction, or (ii) in the case of an instrument other than acashier's check, teller's check, or certified check, the partymaking payment accepted, from the person having a claim to theinstrument, indemnity against loss resulting from refusal to paythe person entitled to enforce the instrument; or

(2) the person making payment knows that the instrument isa stolen instrument and pays a person it knows is in wrongfulpossession of the instrument.

(L. 1992 S.B. 448)

*No continuity with § 400.3-602 as repealed by L. 1992 S.B. 448.