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3-603. Tender of Payment.: See Appendix Q For Material Relating To Changes in Official Comment in 2002

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Jihad Peoples

This document discusses sections 3-602, 3-603, and 3-604 of the Uniform Commercial Code regarding the discharge and tender of payment obligations for instruments. Section 3-602 describes how a transferee can prevent payment from discharging an obligation on a note by notifying all obligated parties. Section 3-603 governs the effect of tendering payment, including discharging interest obligations and deeming tender made if presentment requirements are met. Section 3-604 discusses how a person entitled to enforce an instrument can discharge obligations through voluntary cancellation or renunciation of rights against a party.

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3-603. Tender of Payment.: See Appendix Q For Material Relating To Changes in Official Comment in 2002

Uploaded by

Jihad Peoples
263 views1 page
This document discusses sections 3-602, 3-603, and 3-604 of the Uniform Commercial Code regarding the discharge and tender of payment obligations for instruments. Section 3-602 describes how a transferee can prevent payment from discharging an obligation on a note by notifying all obligated parties. Section 3-603 governs the effect of tendering payment, including discharging interest obligations and deeming tender made if presentment requirements are met. Section 3-604 discusses how a person entitled to enforce an instrument can discharge obligations through voluntary cancellation or renunciation of rights against a party.

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ucc3-603b

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UCC3-603B

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This document discusses sections 3-602, 3-603, and 3-604 of the Uniform Commercial Code regarding the discharge and tender of payment obligations for instruments. Section 3-602 describes how a transferee can prevent payment from discharging an obligation on a note by notifying all obligated parties. Section 3-603 governs the effect of tendering payment, including discharging interest obligations and deeming tender made if presentment requirements are met. Section 3-604 discusses how a person entitled to enforce an instrument can discharge obligations through voluntary cancellation or renunciation of rights against a party.

Copyright:

© All Rights Reserved
Download as PDF, TXT or read online from Scribd
Download as pdf or txt
263 views1 page

3-603. Tender of Payment.: See Appendix Q For Material Relating To Changes in Official Comment in 2002

Uploaded by

Jihad Peoples
This document discusses sections 3-602, 3-603, and 3-604 of the Uniform Commercial Code regarding the discharge and tender of payment obligations for instruments. Section 3-602 describes how a transferee can prevent payment from discharging an obligation on a note by notifying all obligated parties. Section 3-603 governs the effect of tendering payment, including discharging interest obligations and deeming tender made if presentment requirements are met. Section 3-604 discusses how a person entitled to enforce an instrument can discharge obligations through voluntary cancellation or renunciation of rights against a party.

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§ 3-602 Uniform Commercial Code Art.

however, prevent a person from becoming or acquiring the rights of, a holder in due course.
See Section 3-302(b). Thus, such a person does not become subject to other defenses described
in Section 3-305(a)(2), claims in recoupment described in Section 3-305(a)(3), or claims to
the instrument under Section 3-306. A transferee can prevent payment to the transferor from
discharging the obligation on the note by assuring that each person who is obligated on the
note receives adequate notification pursuant to subsection (b) prior to making a payment.
Amendment approved by the Permanent Editorial Board for Uniform Commercial Code
October 31, 2003.
As amended in 2002 and 2003.
See Appendix Q for material relating to changes in Official Comment in
2002.

§ 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 obliga-
tion of an indorser 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.
Official Comment
Section 3-603 replaces former Section 3-604. Subsection (a) generally incorporates the
law of tender of payment applicable to simple contracts. Subsections (b) and (c) state partic-
ular rules. Subsection (b) replaces former Section 3-604(2). Under subsection (b) refusal of a
tender of payment discharges any indorser or accommodation party having a right of re-
course against the party making the tender. Subsection (c) replaces former Section 3-604(1)
and (3).

§ 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 instru-
ment (i) by an intentional voluntary act, such as surrender of the instru-
ment to the party, destruction, mutilation, or cancellation of the instru-
ment, cancellation or striking out of the party's signature, or the addition
of words to the instrument indicating discharge, or (ii) by agreeing not to
sue or otherwise renouncing rights against the party by a signed record.
(b) Cancellation or striking out of an indorsement pursuant to subsec-
tion (a) does not affect the status and rights of a party derived from the
indorsement.
(c) In this section, “signed,” with respect to a record that is not a writing,
includes the attachment to or logical association with the record of an
electronic symbol, sound, or process with the present intent to adopt or ac-
cept the record.
422

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