Okla. Stat. tit. 12A, § 12A-12-106

controllable payment intangible.

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:

(1) the person having control of the controllable electronic

record that evidences the controllable account or controllable

payment intangible; or

(2) except as provided in subsection (b) of this section, a

person that formerly had control of the controllable electronic

record.

(b) Subject to subsection (d) of this section, the account

debtor may 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:

(1) is signed by a person that formerly had control or the

person to which control was transferred;

(2) reasonably identifies the controllable account or

controllable payment intangible;

(3) notifies the account debtor that control of the

controllable electronic record that evidences the controllable

account or controllable payment intangible was transferred;

(4) identifies the transferee, in any reasonable way, including

by name, identifying number, cryptographic key, office, or account

number; and

(5) provides a commercially reasonable method by which the

account debtor is to pay the transferee.

(c) After receipt of a notification that complies with

subsection (b) of this section, the account debtor may discharge its

obligation by paying in accordance with the notification and may not

discharge the obligation by paying a person that formerly had

control.

(d) Subject to subsection (h) of this section, notification is

ineffective under subsection (b) of this section:

(1) unless, before the notification is sent, the account debtor

and the person that, at that time, had control of the controllable

Oklahoma Statutes - Title 12A. Uniform Commercial Code Page 468

electronic record that evidences the controllable account or

controllable payment intangible agree in a signed record to a

commercially reasonable method by which a person may furnish

reasonable proof that control has been transferred;

(2) to the extent an agreement between the account debtor and

seller of a payment intangible limits the account debtor's duty to

pay a person other than the seller and the limitation is effective

under law other than this article; or

(3) at the option of the account debtor, if the notification

notifies the account debtor to:

(A) divide a payment;

(B) make less than the full amount of an installment or

other periodic payment; or

(C) pay any part of a payment by more than one method or

to more than one person.

(e) Subject to subsection (h) of this section, if requested by

the account debtor, the person giving the notification under

subsection (b) of this section seasonably shall furnish reasonable

proof, using the method in the agreement referred to in paragraph

(1) of subsection (d) of this section, 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)

of this section.

(f) A person furnishes reasonable proof under subsection (e) of

this section that control has been transferred if the person

demonstrates, using the method in the agreement referred to in

paragraph 1 of subsection (d) of this section, that the transferee

has the power to:

(1) avail itself of substantially all the benefit from the

controllable electronic record;

(2) prevent others from availing themselves of substantially

all the benefit from the controllable electronic record; and

(3) transfer the powers specified in paragraphs (1) and (2) of

this subsection to another person.
ragraph 1 of subsection (d) of this section, that the transferee

has the power to:

(1) avail itself of substantially all the benefit from the

controllable electronic record;

(2) prevent others from availing themselves of substantially

all the benefit from the controllable electronic record; and

(3) transfer the powers specified in paragraphs (1) and (2) of

this subsection to another person.

(g) Subject to subsection (h) of this section, an account

debtor may not waive or vary its rights under paragraph (1) of

subsection (d) and subsection (e) of this section or its option

under paragraph (3) of subsection (d) of this section.

(h) This section is subject to law other than this article

which establishes a different rule for an account debtor who is an

individual and who incurred the obligation primarily for personal,

family, or household purposes.