Montana Code Annotated 2023

TITLE 30. TRADE AND COMMERCE

CHAPTER 3. UNIFORM COMMERCIAL CODE NEGOTIABLE INSTRUMENTS

Part 6. Discharge

Discharge And Effect Of Discharge

30-3-601. Discharge and effect of discharge. (1) The obligation of a party to pay the instrument is discharged as stated in this chapter or by an act or agreement with the party that 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.

History: En. Sec. 3-601, Ch. 264, L. 1963; R.C.M. 1947, 87A-3-601; amd. Sec. 150, Ch. 410, L. 1991.