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2018 Georgia Code 11-3-604 | Car Wreck Lawyer

Link to State of Georgia Official Statute 2018 Georgia Code Annotated (sourced from legal.resource.org)
O.C.G.A. 11-3-604 Case Law from Google Scholar Amendments to OCGA 11-3-604

TITLE 11 COMMERCIAL CODE

Section 3. Negotiable Instruments, 11-3-101 through 11-3-605.

ARTICLE 3 NEGOTIABLE INSTRUMENTS

11-3-604. Discharge by cancellation or renunciation.

  1. A person entitled to enforce an instrument, with or without consideration, may discharge the obligation of a party to pay the instrument by (i) 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) agreeing not to sue or otherwise renouncing rights against the party by a signed writing.
  2. Cancellation or striking out of an indorsement pursuant to subsection (a) of this Code section does not affect the status and rights of a party derived from the indorsement.

(Code 1981, §11-3-604, enacted by Ga. L. 1996, p. 1306, § 3.)

JUDICIAL DECISIONS

Editor's notes.

- In light of the similarity of the issues dealt with, decisions under former Code Section 11-3-605 are included in the annotations of this section.

Requirements for discharge of promissory note.

- Although a holder of a promissory note may accomplish a discharge on the instrument itself, there are no requirements that the holder do so, nor are there any specific words which must be written to effect the cancellation and renunciation. Gorlin v. Reece, 187 Ga. App. 584, 370 S.E.2d 834 (1988) (decided under former Code Section11-3-605).

Guaranties not ancillary to negotiable instruments.

- Since Article 3 does not cover guaranties which are not ancillary to notes or other actionable negotiable instruments, Article 3 was not applicable to determine the effectiveness of an oral renunciation of a guaranty by a bank's loan officer, after one note had been fully satisfied by the debtor and before subsequent notes were executed which would otherwise have been covered by a future advances clause in the guaranty. Fidelity Nat'l Bank v. Reid, 180 Ga. App. 428, 348 S.E.2d 913 (1986) (decided under former Code Section11-3-605).

RESEARCH REFERENCES

C.J.S.

- 10 C.J.S., Bills and Notes, § 231 et seq.

U.L.A.

- Uniform Commercial Code (U.L.A.) § 3-604.

ALR.

- Right of maker to recover payment or overpayment made by mistake to transferee of paper in good faith, 41 A.L.R. 588.

Surrender (or indemnity in lieu thereof) of original instrument as condition of recovery upon new or renewal instrument, or surrender of new or renewal instrument as condition of recovery upon original, 129 A.L.R. 371.

What constitutes renunciation by surrender of negotiable instrument under UCC § 3-605, 96 A.L.R.3d 1144.

Unintentional cancellation of negotiable instrument under UCC Article 3, 59 A.L.R.4th 617.

No results found for Georgia Code 11-3-604.