(a) A person entitled to enforce an instrument, with or without consideration, may discharge the obligation of a party to pay the instrument (i) by an intentional voluntary act, such as surrender of the instrument to the party, destruction, mutilation, or cancellation of the instrument, cancellation or striking out of the party's signature, or the addition of words to the instrument indicating discharge, or (ii) by agreeing not to sue or otherwise renouncing rights against the party by a signed writing.
(b) Cancellation or striking out of an endorsement pursuant to subsection (a) does not affect the status and rights of a party derived from the endorsement.
(1959, P.A. 133, S. 3-604; P.A. 91-304, S. 66.)
History: P.A. 91-304 entirely replaced former provisions re tender of payment with provisions re discharge by cancellation or renunciation, a restatement of Sec. 42a-3-605, revised to 1991.
See Sec. 42a-3-603(b) and (c) for successor provisions to Sec. 42a-3-604, revised to 1991, re tender of payment.
Cited. 211 C. 613.
Cited. 41 CS 587.
Subsec. (a):
Court may use its common sense and commercial experience in determining that a preprinted form used in the ordinary course of business satisfies Subdiv. (ii) requirement of a “signed writing”. 73 CA 830.