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Oklahoma · Snapshot open-us-law v2026.08, retrieved 2026-09-14

Okla. Stat. tit. 12A, § 12A-3-602: Payment

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Where this section sits in the code
  1. OK Code
  2. Title 12A

PAYMENT

(a) Subject to subsection (e) 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 3-306 of this title by another person.

(b) Subject to subsection (e) of this section, a note is paid

to the extent payment is made by or on behalf of a party obliged to

pay the note to a person that formerly was entitled to enforce the

note only if at the time of the payment the party obliged to pay has

not received adequate notification that the note has been

transferred and that payment is to be made to the transferee. A

notification is adequate only if it is signed by the transferor or

the transferee, reasonably identifies the transferred note, and

provides an address at which payments subsequently are to be made.

Upon request, a transferee shall seasonably furnish reasonable proof

that the note has been transferred. Unless the transferee complies

with the request, a payment to the person that formerly was entitled

to enforce the note is effective for purposes of subsection (c) of

this section even if the party obliged to pay the note has received

a notification under this subsection.

(c) Subject to subsection (e) of this section, to the extent of

a payment under subsections (a) and (b) of this section, 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.

(d) Subject to subsection (e) of this section, a transferee, or

any party that has acquired rights in the instrument directly or

indirectly from a transferee, including any such party that has

rights as a holder in due course, is deemed to have notice of any

payment that is made under subsection (b) of this section after the

date that the note is transferred to the transferee but before the

party obliged to pay the note receives adequate notification of the

transfer.

(e) The obligation of a party to pay the instrument is not

discharged under subsections (a) through (d) 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.

(f) As used in this section, “signed”, with respect to a record

that is not a writing, includes the attachment to or logical

association with the record of an electronic symbol, sound, or

process with the present intent to adopt or accept the record.

Collected 2026-09-14T18:32:36Z. Source file · JSON

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