47-3604. 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 instrument:


1. 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 party's signature or the addition of words to the instrument
indicating discharge; or


2. By agreeing not to sue or otherwise renouncing rights against the party by a
signed writing.


B. Cancellation or striking out of an indorsement pursuant to subsection A does not
affect the status and rights of a party derived from the indorsement.