California · Commercial Code

COM §3601: (a) The obligation of a party to pay the instrument is discharged as stated in this division or by an act or agreement with the party which would discharge an obligation to pay money under a simple co

What this law says, in plain English

A party's obligation to pay an instrument is discharged according to this division or through an act or agreement that would discharge a payment obligation under a simple contract.

Read the full statutory text

(a) The obligation of a party to pay the instrument is discharged as stated in this division 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.

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