Statute · New York Uniform Commercial Code

N.Y. U.C.C. Law § 3-802 — Effect of Instrument on Obligation for Which It Is Given

N.Y. U.C.C. Law § 3-802

Type: Statute
Source: New York Uniform Commercial Code
Jurisdiction: New York
Current through: Nov 4, 2026 (NY Senate Open Legislation)

Section 3--802. Effect of Instrument on Obligation for Which It Is

Citator

N.Y. U.C.C. Law § 3-802 — Effect of Instrument on Obligation for Which It Is Given is in force in the current edition of the Code, and nothing recorded condemns it.

Section 3--802. Effect of Instrument on Obligation for Which It Is

Given.

(1) Unless otherwise agreed where an instrument is taken for an underlying obligation

(a) the obligation is pro tanto discharged if a bank is drawer,

maker or acceptor of the instrument and there is no recourse

on the instrument against the underlying obligor; and

(b) in any other case the obligation is suspended pro tanto until

the instrument is due or if it is payable on demand until its

presentment. If the instrument is dishonored action may be

maintained on either the instrument or the obligation;

discharge of the underlying obligor on the instrument also

discharges him on the obligation.

(2) The taking in good faith of a check which is not postdated does not of itself so extend the time on the original obligation as to discharge a surety.