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Can you summarize 8.3A VACV Part 6?
Commercial Code Negotiable Instruments >
Short Summary
This section of the Code of Virginia, specifically the Commercial Code Negotiable Instruments, governs the discharge of endorsers and accommodation parties. It clarifies that the discharge of a party’s obligation to pay an instrument does not discharge the obligation of an endorser or accommodation party with a right of recourse against the discharged party. The section also outlines the circumstances under which an extension of the due date or a material modification of the obligation can discharge an endorser or accommodation party, provided that loss is proven. Additionally, it addresses the discharge of an endorser or accommodation party when the value of collateral is impaired or when impairment causes a party to pay more than they would have otherwise been obliged to pay. The burden of proving impairment is on the party asserting discharge. The section also specifies that an accommodation party is not discharged unless the person entitled to enforce the instrument knows of the accommodation or has notice of it. Furthermore, it states that parties can waive discharge based on suretyship or impairment of collateral through consent or specific provisions in the instrument or a separate agreement.
Whom does it apply to?
Endorsers, accommodation parties, and persons entitled to enforce negotiable instruments
What does it govern?
Discharge of endorsers and accommodation parties in relation to negotiable instruments
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Virginia