Code of Alabama

Ala. Code § 7-3-601 (2026)

Discharge and Effect of Discharge.

✓ official Alabama Legislature (ALISON) text, current July 2026
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(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.

(Acts 1965, No. 549, p. 811; repealed by Acts 1995, No. 95-668, p. 1381, §1; added by Acts 1995, No. 95-668, p. 1381, §1.)

Notes of Decisions
Cited in 1 case, 1986–1986 · leading case: Parnell v. SouthTrust Bank of Etowah Cnty., N.A., 496 So. 2d 34 (Ala. 1986).
Parnell v. SouthTrust Bank of Etowah Cnty., N.A., 496 So. 2d 34 (Ala. 1986). “See Code 1975, §§ 7-3-605 and 8-1-23. Parnell responds that he was discharged upon consideration, that consideration being the agreement of Kilgore and Polystone to assume the debt, see Code 1975, § 7-3-601(2), and that Williams's oral promise to release him upon this…”
— Ala. Code § 7-3-601(2) — 1 case
Parnell v. SouthTrust Bank of Etowah Cnty., N.A., 496 So. 2d 34 (Ala. 1986). “See Code 1975, §§ 7-3-605 and 8-1-23. Parnell responds that he was discharged upon consideration, that consideration being the agreement of Kilgore and Polystone to assume the debt, see Code 1975, § 7-3-601(2), and that Williams's oral promise to release him upon this…”
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