S.C. Code Ann. § 36-3-601 – Discharge and effect of discharge

(a) 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 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.

HISTORY: 1962 Code Section 10.3-601; 1966 (54) 2716; 2008 Act No. 204, Section 2, eff July 1, 2008. Definitional Cross References: "Agreement" Section 36-1-201(3) "Contract" Section 36-1-201(11) "Holder in Due Course" Section 36-3-302(a) "Instrument" Section 36-3-104(b) "Money" Section 36-1-201(24) "Notice" Section 36-1-201(25) [see now Section 36-1-202] "Party" Section 36-3-103(a)(10) "Person" Section 36-1-201(30)