{"data":{"id":"us-ok/okla.-stat.-tit.-12a-12a-12-106","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 12A, § 12A-12-106","heading":"Discharge of account debtor on controllable account or","body":"controllable payment intangible.\n\nDISCHARGE OF ACCOUNT DEBTOR ON CONTROLLABLE ACCOUNT OR CONTROLLABLE\n\nPAYMENT INTANGIBLE\n\n(a) An account debtor on a controllable account or controllable\n\npayment intangible may discharge its obligation by paying:\n\n(1) the person having control of the controllable electronic\n\nrecord that evidences the controllable account or controllable\n\npayment intangible; or\n\n(2) except as provided in subsection (b) of this section, a\n\nperson that formerly had control of the controllable electronic\n\nrecord.\n\n(b) Subject to subsection (d) of this section, the account\n\ndebtor may not discharge its obligation by paying a person that\n\nformerly had control of the controllable electronic record if the\n\naccount debtor receives a notification that:\n\n(1) is signed by a person that formerly had control or the\n\nperson to which control was transferred;\n\n(2) reasonably identifies the controllable account or\n\ncontrollable payment intangible;\n\n(3) notifies the account debtor that control of the\n\ncontrollable electronic record that evidences the controllable\n\naccount or controllable payment intangible was transferred;\n\n(4) identifies the transferee, in any reasonable way, including\n\nby name, identifying number, cryptographic key, office, or account\n\nnumber; and\n\n(5) provides a commercially reasonable method by which the\n\naccount debtor is to pay the transferee.\n\n(c) After receipt of a notification that complies with\n\nsubsection (b) of this section, the account debtor may discharge its\n\nobligation by paying in accordance with the notification and may not\n\ndischarge the obligation by paying a person that formerly had\n\ncontrol.\n\n(d) Subject to subsection (h) of this section, notification is\n\nineffective under subsection (b) of this section:\n\n(1) unless, before the notification is sent, the account debtor\n\nand the person that, at that time, had control of the controllable\n\nelectronic record that evidences the controllable account or\n\ncontrollable payment intangible agree in a signed record to a\n\ncommercially reasonable method by which a person may furnish\n\nreasonable proof that control has been transferred;\n\n(2) to the extent an agreement between the account debtor and\n\nseller of a payment intangible limits the account debtor's duty to\n\npay a person other than the seller and the limitation is effective\n\nunder law other than this article; or\n\n(3) at the option of the account debtor, if the notification\n\nnotifies the account debtor to:\n\n(A) divide a payment;\n\n(B) make less than the full amount of an installment or\n\nother periodic payment; or\n\n(C) pay any part of a payment by more than one method or\n\nto more than one person.\n\n(e) Subject to subsection (h) of this section, if requested by\n\nthe account debtor, the person giving the notification under\n\nsubsection (b) of this section seasonably shall furnish reasonable\n\nproof, using the method in the agreement referred to in paragraph\n\n(1) of subsection (d) of this section, that control of the\n\ncontrollable electronic record has been transferred. Unless the\n\nperson complies with the request, the account debtor may discharge\n\nits obligation by paying a person that formerly had control, even if\n\nthe account debtor has received a notification under subsection (b)\n\nof this section.\n\n(f) A person furnishes reasonable proof under subsection (e) of\n\nthis section that control has been transferred if the person\n\ndemonstrates, using the method in the agreement referred to in\n\nparagraph 1 of subsection (d) of this section, that the transferee\n\nhas the power to:\n\n(1) avail itself of substantially all the benefit from the\n\ncontrollable electronic record;\n\n(2) prevent others from availing themselves of substantially\n\nall the benefit from the controllable electronic record; and\n\n(3) transfer the powers specified in paragraphs (1) and (2) of\n\nthis subsection to another person.\nragraph 1 of subsection (d) of this section, that the transferee\n\nhas the power to:\n\n(1) avail itself of substantially all the benefit from the\n\ncontrollable electronic record;\n\n(2) prevent others from availing themselves of substantially\n\nall the benefit from the controllable electronic record; and\n\n(3) transfer the powers specified in paragraphs (1) and (2) of\n\nthis subsection to another person.\n\n(g) Subject to subsection (h) of this section, an account\n\ndebtor may not waive or vary its rights under paragraph (1) of\n\nsubsection (d) and subsection (e) of this section or its option\n\nunder paragraph (3) of subsection (d) of this section.\n\n(h) This section is subject to law other than this article\n\nwhich establishes a different rule for an account debtor who is an\n\nindividual and who incurred the obligation primarily for personal,\n\nfamily, or household purposes.","path":["OK Code","Title 12A"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os12A.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"791a20a7ceeac5f579efff86b1eae1868b3f78ac1fc58a56e18229ef71fc9bcd","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-12a-12a-12-105","next":"us-ok/okla.-stat.-tit.-12a-12a-12-107"},"notice":"GroundRules: Original legal text. Not legal advice."}