84-3-601. Discharge and effect of discharge. (a) The obligation of a party to pay the instrument is discharged as stated in this article or by an act or agreement with the party which would discharge an obligation to pay money under a simple contract.
(b) Discharge of the obligation of a party is not effective against a person acquiring rights of a holder in due course of the instrument without notice of the discharge.
History: L. 1991, ch. 296, § 63; February 1, 1992.
KANSAS COMMENT, 1996
This section is identical to the 1995 Official Text. This section is derived from the former 84-3-601. Historical case and statutory references can be obtained from the 1965 and 1983 bound volume 7 of the Kansas Statutes Annotated.
The "laundry list" of code sections which provide a discharge in former 84-3-601(1) has been replaced by a general statement. In addition, any enforcible agreement between the parties can result in a discharge.
Discharge is a personal defense. It is ineffective against a holder in due course without notice. The instrument may remain in circulation. Any discharge should be noted on the instrument to prevent any resurrection of liability. Notice that a party has been discharged does not prevent a party from becoming a holder in due course. 84-3-302(b).
Revisor's Note:
Former section 84-3-601 was repealed by L. 1991, ch. 296, § 111 and the number reassigned to the current text.
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