TITLE 28

COMMERCIAL TRANSACTIONS

CHAPTER 3

UNIFORM COMMERCIAL CODE — NEGOTIABLE INSTRUMENTS

PART 6.

DISCHARGE AND PAYMENT

28-3-601.  Discharge and effect of discharge. (1) The obligation of a party to pay the instrument is discharged as stated in this chapter or by an act or agreement with the party which would discharge an obligation to pay money under a simple contract.

(2)  Discharge of the obligation of a party is not effective against a person acquiring rights of a holder in due course of the instrument without notice of the discharge.

History:

[28-3-601, added 1993, ch. 288, sec. 2, p. 1050.]