Statutes > New Mexico Statutes > Chapter 55 - Uniform Commercial Code. > Article 3 - Negotiable Instruments, 55-3-101 through 55-3-805. > Section 55-3-601 - Discharge and effect of discharge.

Section 55-3-601 - Discharge and effect of discharge.

55-3-601. Discharge and effect of discharge.

(a)     The obligation of a party to pay the instrument is discharged as stated in this article or by an act or agreement with the party which would discharge an obligation to pay money under a simple contract.   

(b)     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.