HRS §490:3-602
When a check or other payment document is considered paid
This section says when a payment document is considered paid and the debt is cleared. It also lists situations where payment does not clear the debt, such as when a court order blocks payment or the document is stolen. It is a narrow rule about payment and discharge.
everyone
The statute, as written — Payment
(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 section 490:3-306 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 section 490:3-306 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'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.
Sections this one refers to
§490:3-306 Who can keep a check or note despite someone else's claim
LawTrove is not legal advice. The summary above is a computer-generated restatement — the authoritative text is the official version linked above.