- Alaska Statutes.
- Title 45. Trade and Commerce
- Chapter 3. Negotiable Instruments
- Section 602. Payment.
previous: Section 601
. Discharge and Effect of Discharge.
next: Section 603
. Tender of Payment.
AS 45.03.602. Payment.
- (a) Subject to (b) 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 AS 45.03.306
by another person.
- (b) The obligation of a party to pay the instrument is not discharged under (a) of this section if
- (1) a claim to the instrument under AS 45.03.306
is enforceable against the party receiving payment and
- (A) payment is made with knowledge by the payor that payment is prohibited by injunction or similar process of a court of
competent jurisdiction; or
- (B) in the case of 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
- (2) 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.
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