Section 55-3-604 - Discharge by cancellation or renunciation.

55-3-604. 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 record.

(b)     Cancellation or striking out of an indorsement pursuant to Subsection (a) of this section does not affect the status and rights of a party derived from the indorsement.

(c)     As used in this section, "signed" with respect to a record that is not a writing includes the attachment to or logical association with the record of an electronic symbol, sound or process with the present intent to adopt or accept the record.