(a) A person entitled to enforce an instrument, with or without consideration, may discharge the obligation of a party to pay the instrument
(1) 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
(2) by agreeing not to sue or otherwise renouncing rights against the party by a signed writing.
(b) Cancellation or striking out of an endorsement under (a) of this section does not affect the status and rights of a party derived from the endorsement.
Section: Previous 45.03.601 45.03.602 45.03.603 45.03.604 45.03.605 45.03.606 NextLast modified: November 15, 2016