[§490:12-106] Discharge of account debtor on controllable account or controllable payment intangible. (a) An account debtor on a controllable account or controllable payment intangible may discharge its obligation by paying:
(b) Subject to subsection (d), the account debtor shall not discharge its obligation by paying a person that formerly had control of the controllable electronic record if the account debtor receives a notification that:
(c) After receipt of a notification that complies with subsection (b), the account debtor may discharge its obligation by paying in accordance with the notification and shall not discharge the obligation by paying a person that formerly had control.
(d) Subject to subsection (h), notification shall be deemed ineffective under subsection (b):
(e) Subject to subsection (h), if requested by the account debtor, the person giving the notification under subsection (b) shall seasonably furnish reasonable proof, using the method in the agreement referred to in subsection (d)(1), that control of the controllable electronic record has been transferred. Unless the person complies with the request, the account debtor may discharge its obligation by paying a person that formerly had control, even if the account debtor has received a notification under subsection (b).
(f) A person shall be deemed to have furnished reasonable proof under subsection (e) that control has been transferred if the person demonstrates, using the method in the agreement referred to in subsection (d)(1), that the transferee has the power to:
(g) Subject to subsection (h), an account debtor shall not waive or vary its rights under subsections (d)(1) and (e) or its option under subsection (d)(3).
(h) This section shall be subject to law other than this article that establishes a different rule for an account debtor who is an individual and who incurred the obligation primarily for personal, family, or household purposes. [L 2023, c 132, pt of §1]