§ 6A-3-602 - Payment. - Rhode Island Statutes

SECTION 6A-3-602

   § 6A-3-602  Payment. – (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) toa person entitled to enforce the instrument. To the extent of the payment, theobligation of the party obliged to pay the instrument is discharged even thoughpayment is made with knowledge of a claim to the instrument under §6A-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 § 6A-3-306 isenforceable against the party receiving payment and (i) payment is made withknowledge by the payor that payment is prohibited by injunction or similarprocess of a court of competent jurisdiction, or (ii) in the case of aninstrument other than a cashier's check, teller's check, or certified check,the party making payment accepted, from the person having a claim to theinstrument, indemnity against loss resulting from refusal to pay the personentitled to enforce the instrument; or

   (2) The person making payment knows that the instrument is astolen instrument and pays a person it knows is in wrongful possession of theinstrument.