§ 26-1-3.1-604 — Discharge by cancellation or renunciation

Indiana § 26-1-3.1-604

• Jurisdiction: Indiana
• Title 26: COMMERCIAL LAW
• Art. 1: UNIFORM COMMERCIAL CODE
• Ch. 3.1: Negotiable Instruments

Text

(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 record.
The obligation of a party to pay a check is not discharged solely by
destruction of the check in connection with a process in which
information is extracted from the check and an image of the check is
made and, subsequently, the information and image are transmitted for
payment.
(b) Cancellation or striking out of an endorsement under subsection
(a) does not affect the status and rights of a party derived from the
endorsement.

Legislative History

As added by P.L.222-1993, SEC.5. Amended by P.L.135-2009, SEC.13; P.L.199-2023, SEC.21.