Commercial Code section 3601

(a)

The obligation of a party to pay the instrument is discharged as stated in this division 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.

Source: Section 3601, https://leginfo.­legislature.­ca.­gov/faces/codes_displaySection.­xhtml?lawCode=COM§ionNum=3601.­ (updated Jan. 1, 1993; accessed Jun. 25, 2025).

Green check means up to date. Up to date

Verified:
Jun. 25, 2025

§ 3601's source at ca​.gov