This law explains how a person’s duty to pay a financial document, like a check, can be canceled. The party's duty can be cleared either through a specific action or agreement similar to paying off a simple contract. However, if someone else obtains the rights to the document without knowing about this cancellation, the original duty to pay still stands.

This law discusses when a payment made on a financial instrument, like a check, discharges the payer's obligation. Normally, paying someone who's supposed to get the money ends the payer’s responsibility, even if someone else claims the money. But, if there's a court order stopping the payment or someone claims the check and offers indemnity, the payer isn’t off the hook if they pay the wrong person. Also, if the payer knows the check is stolen and still pays someone who shouldn't have it, they’re not released from their obligation.

This section talks about what happens when someone tries to pay off a debt involving a payment instrument, like a check. First, if someone who owes money attempts to pay and the person who can enforce the payment refuses it, the debt is considered partially discharged (or reduced) for any co-signers or parties who could pursue the debt. Second, if payment is offered but refused, the person who owes doesn't have to pay interest on the amount from the due date onward. Also, if the person who owes the money is ready to pay on time and in the right place, it's like they actually made the payment.

This law says that someone who has the right to enforce a legal document (like a check or promissory note) can cancel someone else's obligation to pay it. This can happen if they intentionally give up the document, destroy it, or mark it as canceled. Alternatively, they can sign something saying they won't take legal action to enforce it. However, just destroying a check while processing doesn't cancel its obligation. Also, if you cross out a signature or mark it canceled, it doesn't change the legal rights of someone who got the check from someone else.

This section explains various situations where people who have signed a negotiable instrument, like checks or promissory notes, can be freed from their promise to pay it back. It clarifies that when a primary party's obligation is canceled, it doesn't affect someone who has a right to get money back from that party. However, if the payment date is extended or if the terms are changed significantly, those who backed the note might be discharged from their obligation, if they can show that these changes caused them a loss. If collateral—property or assets used to secure the obligation—is undervalued or released, those backers might also be released from their obligation in part or completely. The law also describes the conditions under which someone can argue that they aren't responsible for the payment anymore, such as when the person making the changes knew about the situation beforehand.