§12A-3-602.

§12A-3-602.
   
                                  PAYMENT
                                      
   (a) Subject to subsection (b) of this section, 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 3-306
   of this title 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 3-306 of this title 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.