84-3-603. Tender of payment. (a) If tender of payment of an obligation to pay an instrument is made to a person entitled to enforce the instrument, the effect of tender is governed by principles of law applicable to tender of payment under a simple contract.
(b) If tender of payment of an obligation to pay an instrument is made to a person entitled to enforce the instrument and the tender is refused, there is discharge, to the extent of the amount of the tender, of the obligation of an endorser or accommodation party having a right of recourse with respect to the obligation to which the tender relates.
(c) If tender of payment of an amount due on an instrument is made to a person entitled to enforce the instrument, the obligation of the obligor to pay interest after the due date on the amount tendered is discharged. If presentment is required with respect to an instrument and the obligor is able and ready to pay on the due date at every place of payment stated in the instrument, the obligor is deemed to have made tender of payment on the due date to the person entitled to enforce the instrument.
History: L. 1991, ch. 296, § 65; February 1, 1992.
KANSAS COMMENT, 1996
This section is identical to the 1995 Official Text. This section is derived from the former 84-3-604. Historical case and statutory references can be obtained from the 1965 and 1983 bound volume 7 of the Kansas Statutes Annotated.
Under the provisions of subsection (b), if tender of payment is made and refused, the indorsers and accommodation parties will be discharged. Under subsection (c), if the obligor was ready and able to pay an instrument requiring presentment on the due date, it has the effect of tender of payment, also discharging indorsers and accommodation parties. It is, therefore, important for the holder or one entitled to enforce the instrument to make presentment on the due date specified in the instrument or risk discharging prior parties.
Revisor's Note:
Former section 84-3-603 was repealed by L. 1991, ch. 296, § 111 and the number reassigned to the current text.
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