1. (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.
2. (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.

(1959, P.A. 133, S. 3-601; P.A. 91-304, S. 63.)

History: P.A. 91-304 combined provisions of former Subsecs. (1) and (2) into new Subsec. (a), amended Subsec. (a) to replace reference to specific sections governing discharge with provision that the obligation of a party to pay the instrument is discharged “as stated in this article”, deleted former Subsec. (3) re when liability of all parties is discharged, and added Subsec. (b) re effect of discharge against a holder in due course, a restatement of Sec. 42a-3-602, revised to 1991.