§490:3-604  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
instrument (i) 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 (ii) 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. [L 1991, c 118, pt of §1]