(a) The obligation of a party to pay the instrument is discharged as stated in this Article 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. (1899, c. 733, ss. 15, 16, 57, 119 to 121; Rev., ss. 2165, 2166, 2206, 2269 to 2271; C.S., ss. 2296, 2297, 3038, 3101 to 3103; 1965, c. 700, s. 1; 1995, c. 232, s. 1.)
Sections: Previous 25-3-420 25-3-501 25-3-502 25-3-503 25-3-504 25-3-505 25-3-506 25-3-601 25-3-602 25-3-603 25-3-604 25-3-605 25-4-101 25-4-102 25-4-103 Next
Last modified: March 23, 2014