§ 10:3-604 — Discharge by cancellation or renunciation

§3-604. Discharge by cancellation or renunciation
(a) A person entitled to enforce an instrument, with or without consideration, may
discharge the obligation of a party to pay the instrument (i) 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 (ii) 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 indorsement pursuant to Subsection (a) does
not affect the status and rights of a party derived from the indorsement.

Legislative History

Acts 1992, No. 1133, §3, eff. July 1, 1993; Acts 1993, No. 948, §10, eff. Jan. 1, 1994; Acts 2024, No. 773, §1.