1997 Minnesota Statutes

   336.3-602 Payment. 

    (a) Subject to subsection (b), an instrument is paid to the 
 extent payment is made (i) by or on behalf of a party obliged to 
 pay the instrument, and (ii) 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 section 336.3-306 by another person.  

    (b) The obligation of a party to pay the instrument is not 
 discharged under subsection (a) if:  

    (1) a claim to the instrument under section 336.3-306 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 

    (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.  

    HIST: 1992 c 565 s 67