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Can you summarize IACO 554.3602?
UNIFORM COMMERCIAL CODE > Payment.
Short Summary
This legal document, found in the Iowa Code under the Commerce section and the Uniform Commercial Code, pertains to the payment of instruments. It states that an instrument is considered paid when payment is made by or on behalf of a party obliged to pay the instrument and to a person entitled to enforce the instrument. The payment discharges the obligation of the party obliged to pay, even if there is a claim to the instrument by another person. However, there are exceptions to this rule. Payment is not considered discharged if it is made with knowledge that payment is prohibited by court injunction or similar process, or if payment is made to a person known to be in wrongful possession of a stolen instrument. The document does not specify any specific penalties for non-compliance or violation. Overall, this document provides guidelines for the payment of instruments and the discharge of obligations.
Whom does it apply to?
Parties obliged to pay the instrument and persons entitled to enforce the instrument
What does it govern?
Payment
What are exemptions?
A. Payment made with knowledge that payment is prohibited by court injunction or similar process, or payment accepted with indemnity against loss resulting from refusal to pay the person entitled to enforce the instrument; b. Payment made when the instrument is known to be stolen and paid to a person in wrongful possession of the instrument
What are the Penalties?
No specific penalties mentioned
Jurisdiction
Iowa