Interesting law...

JCEMT - I have heard about this law...wouldn't that be nice if the PDLs refused the payment..But that isn't going to happen. After all No Nonsense needs the money to pay his bills so he most definately will be excepting payments.

I've heard this before but always thought it wasn't for real. It's a good law, I wonder if Ohio has that law. I suppose it's time for a little research!

yeah, could you provide the statute for us? I would love to see this one, and compare it to see what my state has.

http://www.legis.state.wv.us/WVCODE/Code.cfm/Bill_Status/code.cfm?chap=46&art=3

The UCC only applies to the sale of goods. The chapter you referred to only applies to "negotiable instruments" ie checks, not money.

That would apply to a paper item payments to a CA, assuming you pay using a negotiable item such as check, money order, etc. I doubt anyone would send cash via USPS.

The UCC is generally adopted in every state. This set of uniform laws allows for interstate commerce to take place without having to worry about each states' particular set of laws.
Keep in mind, a loan contract itself is also a negotiable instrument.
In other words, this provision is saying "If I owe you money (obligation) and I try to pay you (tender), and you won't accept my tender, then you can't come back later and say I still owe it."
Here are also two quotes from a business law book that I have:
??
For example if you contract with a painter to paint your house on a particular day, and he shows up, but you refuse to let him into your house to paint (prevention of performance), then you cannot later try to sue him for not fulfilling his end of the agreement.
Along those same lines, if you have a loan and you are trying to perform your duties under the contract, but the creditor is preventing you from making the payment, then that is a material breech on their end since you were in good faith trying to do what you were required to do.
I would love to see this argument used against these online PDLs who refuse to take anything other than ACH payments. If I want to send you a money order, and you refuse to give me your address, then you are preventing me from paying ....

Wow debt cruncher! Your right, if you could get that on recording then they might end up voiding their clients contract.

A loan contract may be a negotiable instrument under certain circumstances in the law cited above:

"????46-3-104. Negotiable instrument.
(a) Except as provided in subsections (c) and (d), "negotiable instrument" means an unconditional promise or order to pay a fixed amount of money, with or without interest or other charges described in the promise or order, if it:

(1) Is payable to bearer or to order at the time it is issued or first comes into possession of a holder;

(2) Is payable on demand or at a definite time; and

(3) Does not state any other undertaking or instruction by the person promising or ordering payment to do any act in addition to the payment of money, but the promise or order may contain (i) an undertaking or power to give, maintain or protect collateral to secure payment, (ii) an authorization or power to the holder to confess judgment or realize on or dispose of collateral or (iii) a waiver of the benefit of any law intended for the advantage or protection of an obligor.

(b) "Instrument" means a negotiable instrument."

In refusing a payment, the creditor may be in breach of contract as you point out. However, there are many other bases of recovery by a creditor besides contract, ie Account Stated, Money Had and Received, and Equity.