Pennsylvania § 3602 Payment

Pennsylvania Statutes

§ 3602 — Payment

Pennsylvania § 3602

Title 13COMMERCIAL CODE

Ch. 36DISCHARGE AND PAYMENT

This text of Pennsylvania § 3602 (Payment) is published on Counsel Stack Legal Research, covering Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

13 Pa. Cons. Stat. § 3602 (2026).

Text

(a)General rule.--Subject to subsection (b), 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 3306 (relating to claims to an instrument) by another person.

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

(1)a claim to the instrument under section 3306 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

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(a) General rule.--Subject to subsection (b), 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 3306 (relating to claims to an instrument) by another person.

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

(1) a claim to the instrument under section 3306 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.