Page:United States Statutes at Large Volume 77.djvu/724

 692

PUBLIC LAW 88-243-DEC. 30, 1963

[77 STAT.

liolder of nn instnimeiit which has been restrictively indorsed in a manner not consistent with the terms of such restrictiv^e indorsement, (2) Payment or satisfaction may be made with the consent of the liolder by any person including a stranger to the instrument. Surrender of the instrument to such a person gives him the rights of a transferee (section 28:8—201). §28:3—604. Tender of payment (1) An}^ party making tender of full payment to a holder when or after it is due is discharged to the extent of all subsequent liability for interest, costs, and attorney's fees. (2) The holder's refusal of such tender wholly discharges any party who has a right of recourse against the party making the tender. (3) Where the maker or acceptor of an instrument payable otherwise than on demand is able and ready to pay at every place of payment specified in the instrument when it is due, it is equivalent to tender. § 28:3—605. Cancellation and renunciation (1) The holder of an instrument may even without consideration discharge any party (a) in any manner apparent on the face of the instrument or the indorsement, as by intentionally cancelling the instrument or the party's signature by destruction or mutilation, or by striking out the party's signature; or (b) by renouncing his rights by a writing signed and delivered or by surrender of the instrument to the party to be discharged. (2) Neither cancellation nor renunciation without surrender of the instrument affects the title thereto. § 28:3—606. Impairment of recourse or of collateral (1) The holder discharges any party to the instrument to the extent that without such party's consent the holder (a) without express reservation of rights releases or agrees not to sue any person against whom the party has to the knowledge of the holder a right of recourse or agrees to suspend the right to enforce against such person the instrument or collateral or otherwise discharges such person, except that failure or delay in effecting any required presentment, protest or notice of dishonor with respect to any such person does not discharge any party as to whom presentment, protest or notice of dishonor is effective or unnecessary; or (b) unjustifiably impairs any collateral for the instrument given by or on behalf of the party or any person against whom he has a right of recourse. (2) By express reservation of rights against a party with a right of recourse the holder preserves (a) all his rights against such party as of the time when the instrument was originally due; and (b) the right of the party to pay the instrument as of that time; and (c) all rights of such party to recourse against others.

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