(a) 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.
(b) 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: 1962 Code Section 10.3-601; 1966 (54) 2716; 2008 Act No. 204, Section 2, eff July 1, 2008.