(1) Subject to subsection (2) of this section, an instrument is paid to the extent payment is made by or on behalf of a party obliged to pay the instrument, and 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 even though payment is made with knowledge of a claim to the instrument under ORS 73.0306 or by another person.
(2) The obligation of a party to pay the instrument is not discharged under subsection (1) of this section if:
(a) A claim to the instrument under ORS 73.0306 is enforceable against the party receiving payment and:
(A) Payment is made with knowledge of the payor that payment is prohibited by injunction or similar process or a court of competent jurisdiction; or
(B) In the case 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
(b) The person making payment knows that the instrument is a stolen instrument and pays a person it knows is in wrongful possession of the instrument. [1993 c.545 §68]
Section: Previous 73.0420 73.0501 73.0502 73.0503 73.0504 73.0505 73.0601 73.0602 73.0603 73.0604 73.0605 73.1010 73.1020 73.1030 73.1040 NextLast modified: August 7, 2008