Maine Revised Statutes Title 11 Sec. 3-1602 – Payment
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(1). Subject to subsection (2), an instrument is paid to the extent payment is made:
(a). By or on behalf of a party obliged to pay the instrument; and [PL 1993, c. 293, Pt. A, §2 (NEW).]
(b). To a person entitled to enforce the instrument. [PL 1993, c. 293, Pt. A, §2 (NEW).]
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 section 3?306 by another person.
[PL 1993, c. 293, Pt. A, §2 (NEW).]
Terms Used In Maine Revised Statutes Title 11 Sec. 3-1602
- Injunction: An order of the court prohibiting (or compelling) the performance of a specific act to prevent irreparable damage or injury.
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
(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 3?1306 is enforceable against the party receiving payment and:
(i) Payment is made with knowledge by the payor that payment is prohibited by injunction 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 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 [PL 1993, c. 293, Pt. A, §2 (NEW).]
(b). The person making payment knows that the instrument is a stolen instrument and pays a person that the person making payment knows is in wrongful possession of the instrument. [PL 1993, c. 293, Pt. A, §2 (NEW).]
[PL 1993, c. 293, Pt. A, §2 (NEW).]
SECTION HISTORY
PL 1993, c. 293, §A2 (NEW).