§ 4-3-603 — Tender of payment

(a) If tender of payment of an obligation to
pay an instrument is made to a person entitled to enforce the instrument, the effect
of tender is governed by principles of law applicable to tender of payment under a
simple contract.

(b) If tender of payment of an obligation to pay an instrument is made to a
person entitled to enforce the instrument and the tender is refused, there is
discharge, to the extent of the amount of the tender, of the obligation of an indorser
or accommodation party having a right of recourse with respect to the obligation to
which the tender relates.

(c) If tender of payment of an amount due on an instrument is made to a
person entitled to enforce the instrument, the obligation of the obligor to pay
interest after the due date on the amount tendered is discharged. If presentment is
required with respect to an instrument and the obligor is able and ready to pay on
the due date at every place of payment stated in the instrument, the obligor is
deemed to have made tender of payment on the due date to the person entitled to
enforce the instrument.

Legislative History

Source: L. 94: Entire article R&RE, p. 877, � 1, effective January 1, 1995.