1.The obligation of a party to pay the instrument is discharged as stated in this Article or by an act or agreement with the party which would discharge an obligation to pay money under a simple contract. 2.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. 94 Acts, ch 1167, 73, 121, 122

This legal document, found in the Iowa Code under the Commerce section and the Uniform Commercial Code, pertains to the payment of instruments. It states that an instrument is considered paid when payment is made by or on behalf of a party obliged to pay the instrument and to a person entitled to enforce the instrument. The payment discharges the obligation of the party obliged to pay, even if there is a claim to the instrument by another person.

This legal document pertains to the tender of payment of an obligation to pay an instrument. It states that if tender of payment 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. Additionally, if tender of payment is made to a person entitled to enforce the instrument and the tender is refused, there is discharge of the obligation of an endorser or accommodation party to the extent of the amount of the tender.

1.A person entitled to enforce an instrument, with or without consideration, may discharge the obligation of a party to pay the instrument 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 partys signature, or the addition of words to the instrument indicating discharge; or by agreeing not to sue or otherwise renouncing rights against the party by a signed writing.

This section of the Iowa Code, specifically under the Uniform Commercial Code, governs the discharge of endorsers and accommodation parties in relation to payment obligations on an instrument. 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 the obligation of an endorser or accommodation party, provided that loss is proven.

Repealed by 94 Acts, ch 1167, 121, 122.

Repealed by 94 Acts, ch 1167, 121, 122.

Repealed by 94 Acts, ch 1167, 121, 122.

Repealed by 94 Acts, ch 1167, 121, 122.

Repealed by 94 Acts, ch 1167, 121, 122.