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Can you summarize NHRS 382-A:3-605?
UNIFORM COMMERCIAL CODE > Discharge of Indorsers and Accommodation Parties.
Short Summary
This section of the New Hampshire Revised Statutes, specifically the Uniform Commercial Code (Chapter 382-A), governs the discharge of indorsers and accommodation parties in relation to the payment of instruments. It clarifies that the discharge of a party’s obligation to pay an instrument does not discharge the obligation of an indorser 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 the indorser or accommodation party’s obligation, provided that it causes a loss to them. Additionally, it addresses the discharge of an indorser or accommodation party when the value of collateral is impaired or when impairment affects parties jointly and severally liable. The section also specifies that an accommodation party is not discharged unless the person entitled to enforce the instrument is aware of the accommodation. Finally, it states that parties can waive discharge under this section through consent or through specific language in the instrument or a separate agreement. No specific exemptions or penalties are mentioned in this section.
Whom does it apply to?
Parties involved in the payment of instruments, including indorsers and accommodation parties
What does it govern?
Discharge of Indorsers and Accommodation Parties
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
New Hampshire