{"data":{"id":"us-ky/krs-355.3-602","jurisdiction":"us-ky","citation":"KRS 355.3-602","heading":"Payment.","body":"(1) Subject to subsection (5) of this section, an instrument is paid to the extent payment\nis made by or on behalf of a party obliged to pay the instrument and\nto a person entitled to enforce the instrument.\n(2) Subject to subsection (5) of this section, a not e is paid to the extent payment is\nmade by or on behalf of a party obliged to pay the note to a person that formerly\nwas entitled to enforce the note only if at the time of the payment the party obliged\nto pay has not received adequate notification that th e note has been transferred and\nthat payment is to be made to the transferee. A notification is adequate only if it is\nsigned by the transferor or the transferee; reasonably identifies the transferred note;\nand provides an address at which payments subsequ ently are to be made. Upon\nrequest, a transferee shall seasonably furnish reasonable proof that the note has been\ntransferred. Unless the transferee complies with the request, a payment to the person\nthat formerly was entitled to enforce the note is effect ive for purposes of subsection\n(3) of this section even if the party obliged to pay the note has received a\nnotification under this subsection.\n(3) Subject to subsection (5) of this section, to the extent of a payment under\nsubsections (1) and (2) of this section, the obligation of the party obliged to pay the\ninstrument is discharged even though payment is made with knowledge of a claim\nto the instrument under KRS 355.3-306 by another person.\n(4) Subject to subsection (5) of this section, a transferee, or any party that has acquired\nrights in the instrument directly or indirectly from a transferee, including any such\nparty that has rights as a holder in due course, is deemed to have notice of any\npayment that is made under subsection (2) of this section aft er the date that the note\nis transferred to the transferee but before the party obliged to pay the note receives\nadequate notification of the transfer.\n(5) The obligation of a party to pay the instrument is not discharged under subsections\n(1) to (4) of this section if:\n(a) A claim to the instrument under KRS 355.3 -306 is enforceable against the\nparty receiving payment; and\n1. Payment is made with knowledge by the payor that payment is\nprohibited by injunction or similar process of a court of competent\njurisdiction; or\n2. In the case of an instrument other than a cashier's check, teller's check,\nor certified check, the party making payment accepted, from the person\nhaving a claim to the instrument, indemnity against loss resulting from\nrefusal to pay the person entitled to enforce the instrument; or\n(b) The person making payment knows that the instrument is a stolen instrument\nand pays a person it knows is in wrongful possession of the instrument.\n(6) As used in the section, \"signed,\" with respect to a record  that is not a writing,\nincludes the attachment to or logical association with the record of an electronic\nsymbol, sound, or process with the present intent to adopt or accept the record.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=33503","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:44Z","sha256":"b6a293eb69ae139dcf9e866630a703af628d5fade9c70183d52e857172e80e4e","source_id":"us-ky","stale":false,"prev":"us-ky/krs-355.3-601","next":"us-ky/krs-355.3-603"},"notice":"GroundRules: Original legal text. Not legal advice."}