Nevada § 104.3602 - Payment

§ 104.3602. Payment

1. Subject to subsection 5, 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. 2. Subject to subsection 5, 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 who 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: (a) Is signed by the transferor or the transferee; (b) Reasonably identifies the transferred note; and (c) 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 3 even if

the party obliged to pay the note has received a notification under this subsection. 3. Subject to subsection 5, to the extent of a payment under subsections 1 and 2,

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 NRS 104.3306 by another person. 4. Subject to subsection 5, 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 2 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. 5. The obligation of a party to pay the instrument is not discharged under subsections

1 to 4, inclusive, if: (a) A claim to the instrument under NRS 104.3306 is enforceable against the party receiving payment and: (1) Payment is made with knowledge by the payor that payment is prohibited by injunction

or similar process of a court of competent jurisdiction; or (2) 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 (b) The person making payment knows that the instrument is a stolen instrument and

pays a person he or she knows is in wrongful possession of the instrument. 6. 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.