28-1-1504. When acceptance of novation may be rescinded. When the obligation of a third person or an order upon such person is accepted in satisfaction, the creditor may rescind such acceptance if:
     (1) the debtor prevents such person from complying with the order or from fulfilling the obligation;
     (2) at the time the obligation or order is received, such person is insolvent and the fact is unknown to the creditor; or
     (3) before the creditor can, with reasonable diligence, present the order to the person upon whom it is given, he becomes insolvent.

     History: En. Sec. 2073, Civ. C. 1895; re-en. Sec. 4961, Rev. C. 1907; re-en. Sec. 7463, R.C.M. 1921; Cal. Civ. C. Sec. 1533; Based on Field Civ. C. Sec. 740; re-en. Sec. 7463, R.C.M. 1935; R.C.M. 1947, 58-508.