Section 554.3604 - Discharge by cancellation or renunciation1. A person entitled to enforce an instrument, with or without consideration, may discharge the obligation of a party to pay the instrument by 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 by agreeing not to sue or otherwise renouncing rights against the party by a signed record. The obligation of a party to pay a check is not discharged solely by destruction of the check in connection with a process in which information is extracted from the check and an image of the check is made and, subsequently, the information and image are transmitted for payment.2. Cancellation or striking out of an endorsement pursuant to subsection 1 does not affect the status and rights of a party derived from the endorsement.94 Acts, ch 1167, §76, 121, 122; 2013 Acts, ch 30, §150
Amended by 2024 Iowa, ch Chapter 1023,s 25, eff. 7/1/2024.Amended by 2013 Iowa, ch 30, s 150, eff. 7/1/2013.Amended by 2013 Iowa, ch 30, s 150, eff. 7/1/2013.94 Acts, ch 1167, §76, 121, 122