Nebraska Uniform Commercial Code 3-601
- Uniform Commercial Code
- 3-601
3-601.
Discharge and effect of discharge.
(a) The obligation of a party to pay the instrument is discharged as stated in this article or by an act or agreement with the party which would discharge an obligation to pay money under a simple contract.
(b) Discharge of the obligation of a party is not effective against a person acquiring rights of a holder in due course of the instrument without notice of the discharge.
Source
Annotations
For purposes of subsection (1) of former section 3-601, a setoff is a means of satisfaction of a debt. Harmon Cable Communications v. Scope Cable Television, 237 Neb. 871, 468 N.W.2d 350 (1991).
Subsection (2) of former section 3-601 is a "catchall" provision which does not come into play if a debt is discharged by some means encompassed in subsection (1) of this section. Harmon Cable Communications v. Scope Cable Television, 237 Neb. 871, 468 N.W.2d 350 (1991).