Mont. Code Ann. » TITLE 30. TRADE AND COMMERCE · CHAPTER 3. UNIFORM COMMERCIAL CODE NEGOTIABLE INSTRUMENTS · Part 3. Rights of a Holder
Montana Code Annotated

Mont. Code Ann. § 30-3-310 (2026)

Effect Of Instrument On Obligation For Which Taken

✓ current as of May 2026
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  1. MCA Contents
  2. TITLE 30
  3. CHAPTER 3
  4. Part 3
  5. 30-3-310 Effect of instrument on obligation for which taken

TITLE 30. TRADE AND COMMERCE

CHAPTER 3. UNIFORM COMMERCIAL CODE NEGOTIABLE INSTRUMENTS

Part 3. Rights of a Holder

Effect Of Instrument On Obligation For Which Taken

30-3-310. Effect of instrument on obligation for which taken. (1) Unless otherwise agreed, if a certified check, cashier's check, or teller's check is taken for an obligation, the obligation is discharged to the same extent discharge would result if an amount of money equal to the amount of the instrument were taken in payment of the obligation. Discharge of the obligation does not affect any liability that the obligor may have as an indorser of the instrument.

(2) Unless otherwise agreed and except as provided in subsection (1), if a note or an uncertified check is taken for an obligation, the obligation is suspended to the same extent the obligation would be discharged if an amount of money equal to the amount of the instrument were taken.

(3) In the case of an uncertified check, suspension of the obligation continues until dishonor of the check or until it is paid or certified. Payment or certification of the check results in discharge of the obligation to the extent of the amount of the check.

(4) In the case of a note, suspension of the obligation continues until dishonor of the note or until it is paid. Payment of the note results in discharge of the obligation to the extent of the payment.

(5) If the check or note is dishonored and the obligee of the obligation for which the instrument was taken has possession of the instrument, the obligee may enforce either the instrument or the obligation. In the case of an instrument of a third person that is negotiated to the obligee by the obligor, discharge of the obligor on the instrument also discharges the obligation.

(6) If the person entitled to enforce the instrument taken for an obligation is a person other than the obligee, the obligee may not enforce the obligation to the extent the obligation is suspended. If the obligee is the person entitled to enforce the instrument but no longer has possession of it because it was lost, stolen, or destroyed, the obligation may not be enforced to the extent of the amount payable on the instrument, and to that extent, the obligee's rights against the obligor are limited to enforcement of the instrument.

(7) If an instrument other than one described in subsection (1) or (2) is taken for an obligation, the effect is:

(a) that stated in subsection (1) if the instrument is one on which a bank is liable as maker or acceptor; or

(b) that stated in subsection (2) in any other case.

History: En. Sec. 123, Ch. 410, L. 1991.

Notes of Decisions
Cited in 2 cases, 1998–1998 · leading case: Quigley v. Acker, 1998 MT 72 (Mont. 1998).
Sort: Relevance Newest Treatment
Quigley v. Acker, 1998 MT 72 (Mont. 1998). · cites it 11× “Section 30-3-310, MCA codifies Section 3-310 of the Uniform Commercial Code (U.”
Am. Fed. Sav. & Loan Ass'n v. Madison Valley Props. Inc., 1998 MT 93 (Mont. 1998). · cites it 9× “Nonetheless, the District Court held that American’s perfected lien along with the underlying debt was discharged *371 pursuant to § 30-3-310(1), MCA, when American took the Valley Bank cashier’s check.”
Mont. Code Ann. § 30-3-310(1): 1 case
Am. Fed. Sav. & Loan Ass'n v. Madison Valley Props. Inc., 1998 MT 93 (Mont. 1998). “Nonetheless, the District Court held that American’s perfected lien along with the underlying debt was discharged *371 pursuant to § 30-3-310(1), MCA, when American took the Valley Bank cashier’s check.”
Mont. Code Ann. § 30-3-310(2): 1 case
Quigley v. Acker, 1998 MT 72 (Mont. 1998). “Section 30-3-310, MCA codifies Section 3-310 of the Uniform Commercial Code (U.”
Mont. Code Ann. § 30-3-310(3): 1 case
Quigley v. Acker, 1998 MT 72 (Mont. 1998). “Section 30-3-310, MCA codifies Section 3-310 of the Uniform Commercial Code (U.”
Annotations are extracted automatically from the opinions in the Syfert caselaw corpus and ranked by authority, recency, and treatment. Dots show Syfertize treatment of the citing case itself.