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The Vermont Statutes Online



Title

09A

:
Uniform Commercial Code






Chapter

003

:
Commercial Paper











 

§

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 writing.

(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. (Added 1993, No.

158 (Adj. Sess.), § 12, eff. Jan. 1, 1995.)