2012 Pennsylvania Consolidated Statutes
Title 13 - COMMERCIAL CODE
Chapter 36 - Discharge and Payment
Section 3602 - Payment

     § 3602.  Payment.
        (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.

        Cross References.  Section 3602 is referred to in section
     3103 of this title.