                                 CODE OF VIRGINIA

PAYMENT (§ 8.3A-602)

a. Subject to subsection (b), an instrument is paid to the extent payment is
made (i) by or on behalf of a party obliged to pay the instrument, and (ii) 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 &#xA7;
8.3A-306 by another person.

b. The obligation of a party to pay the instrument is not discharged under
subsection (a) if:

   1. a claim to the instrument under &#xA7; 8.3A-306 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&#8217;s check, teller&#8217;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.

c. Within 90 days following payment in full of the obligation represented by an
instrument, the holder of the instrument shall return it to the maker or his
agent, unless it no longer is in existence. If the instrument no longer is in
existence, upon request from the maker or his agent, the holder shall give
written confirmation that the instrument no longer is in existence and the
obligation has been paid in full, within 90 days of such request. In such event
the holder shall be deemed to have satisfied its obligation under this
subsection.

HISTORY: Code 1950, §§ 6-403, 6-472, 6-473, 6-524 through 6-530; 1964, c. 219,
§ 8.3-603; 1992, c. 693; 2003, c. 342.