84-3-604. 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 (1) 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 (2) by agreeing not to sue or otherwise renouncing rights against the party by a signed writing.
(b) Cancellation or striking out of an endorsement pursuant to subsection (a) does not affect the status and rights of a party derived from the endorsement.
History: L. 1991, ch. 296, § 66; February 1, 1992.
KANSAS COMMENT, 1996
This section is identical to the 1995 Official Text except the lower case roman numerals have been replaced by arabic numbers. This section is derived from the former 84-3-605. Historical case and statutory references can be obtained from the 1965 and 1983 bound volume 7 of the Kansas Statutes Annotated.
The discharge must be by an intentional act of the one entitled to enforce the instrument. Because of the uncertainty of proof of parol statements, it would be wise to request a memorandum of the discharge. Under subsection (b), any cancellation of an indorsement is ignored for the purposes of determining whether the indorsements run in a chain of title from the payee to the holder or the person entitled to enforce the instrument. In addition, the discharge does not eliminate the rights of the other parties against the person discharged.
Revisor's Note:
Former section 84-3-604 was repealed by L. 1991, ch. 296, § 111 and the number reassigned to the current text.
|
|