3-802 - Effect of Instrument on Obligation for Which It Is Given. - New-york Statutes

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Statutes > New-york > Ucc > Article-3 > Part-8 > 3-802

Section 3--802. Effect  of  Instrument  on  Obligation  for  Which It Is                    Given.    (1) Unless otherwise agreed  where  an  instrument  is  taken  for  an  underlying obligation         (a) the  obligation  is pro tanto discharged if a bank is drawer,             maker or acceptor of the instrument and there is no  recourse             on the instrument against the underlying obligor; and         (b) in any other case the obligation is suspended pro tanto until             the instrument is due or if it is payable on demand until its             presentment.  If  the  instrument is dishonored action may be             maintained  on  either  the  instrument  or  the  obligation;             discharge  of  the  underlying obligor on the instrument also             discharges him on the obligation.    (2) The taking in good faith of a check which is  not  postdated  does  not  of  itself  so  extend  the  time  on the original obligation as to  discharge a surety.

State Codes and Statutes

Statutes > New-york > Ucc > Article-3 > Part-8 > 3-802

Section 3--802. Effect  of  Instrument  on  Obligation  for  Which It Is                    Given.    (1) Unless otherwise agreed  where  an  instrument  is  taken  for  an  underlying obligation         (a) the  obligation  is pro tanto discharged if a bank is drawer,             maker or acceptor of the instrument and there is no  recourse             on the instrument against the underlying obligor; and         (b) in any other case the obligation is suspended pro tanto until             the instrument is due or if it is payable on demand until its             presentment.  If  the  instrument is dishonored action may be             maintained  on  either  the  instrument  or  the  obligation;             discharge  of  the  underlying obligor on the instrument also             discharges him on the obligation.    (2) The taking in good faith of a check which is  not  postdated  does  not  of  itself  so  extend  the  time  on the original obligation as to  discharge a surety.

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State Codes and Statutes

Statutes > New-york > Ucc > Article-3 > Part-8 > 3-802

Section 3--802. Effect  of  Instrument  on  Obligation  for  Which It Is                    Given.    (1) Unless otherwise agreed  where  an  instrument  is  taken  for  an  underlying obligation         (a) the  obligation  is pro tanto discharged if a bank is drawer,             maker or acceptor of the instrument and there is no  recourse             on the instrument against the underlying obligor; and         (b) in any other case the obligation is suspended pro tanto until             the instrument is due or if it is payable on demand until its             presentment.  If  the  instrument is dishonored action may be             maintained  on  either  the  instrument  or  the  obligation;             discharge  of  the  underlying obligor on the instrument also             discharges him on the obligation.    (2) The taking in good faith of a check which is  not  postdated  does  not  of  itself  so  extend  the  time  on the original obligation as to  discharge a surety.