§ 554.3603 — Tender of payment

Iowa § 554.3603

• Jurisdiction: Iowa
• Title XIII: COMMERCE
• Ch. 554: UNIFORM COMMERCIAL CODE

Text

1. 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.
2. 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 endorser or accommodation party having a right
of recourse with respect to the obligation to which the tender relates.
3. 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.