A. Subject to subsection 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 section 47-3306 by another person.
B. The obligation of a party to pay the instrument is not discharged under subsection A of this section if:
1. A claim to the instrument under section 47-3306 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.
Notes of Decisions
Cited in
3
cases, 2011–2017 · leading case:
Steinberger v. McVey, 318 P.3d 419 (Ariz. Ct. App. 2014).
Steinberger v. McVey, 318 P.3d 419 (Ariz. Ct. App. 2014).
· cites it 2× “Under AR.S. § 47-3602, “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.”
Silving v. Wells Fargo Bank, Na, 800 F. Supp. 2d 1055 (D. Ariz. 2011).
· cites it 2× “See A.R.S. § 47-3602(A) (“[A]n instrument is paid to the extent payment is made by or on behalf of a party obliged to pay the instrumenté]”).”
Lowry v. Jp Morgan (Ariz. Ct. App. 2017).
· cites it 2× “”) section 33-420, quiet title, unconscionability, defamation, discharge of the debt, and equitable relief under A.R.S. §§ 47-3602 and -360. ¶6 The Lowry II allegations stem from multiple assignments of the loan to different companies, their debt collection efforts, and Lowry’s…”
— Ariz. Rev. Stat. § 47-3602(A) — 1 case
Silving v. Wells Fargo Bank, Na, 800 F. Supp. 2d 1055 (D. Ariz. 2011).
“See A.R.S. § 47-3602(A) (“[A]n instrument is paid to the extent payment is made by or on behalf of a party obliged to pay the instrumenté]”).”
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