Section 45.03.604. 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 under (a) of this section does not affect the status and rights of a party derived from the endorsement.

Authorities

45.03.605

Notes

References

AS 45.03.605 Discharge of endorsers and accommodation parties.

History

(Sec. 3.604 ch 114 SLA 1962; am Sec. 76 ch 35 SLA 1993)