2012 Pennsylvania Consolidated Statutes
Title 13 - COMMERCIAL CODE
Chapter 33 - Enforcement of Instruments
Section 3310 - Effect of instrument on obligation for which taken

     § 3310.  Effect of instrument on obligation for which taken.
        (a)  Certified check, cashier's check or teller's check given
     in payment of obligation.--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.
        (b)  Note or uncertified check taken for obligation.--Unless
     otherwise agreed and except as provided in subsection (a), 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, and the following rules apply:
            (1)  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.
            (2)  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.
            (3)  Except as provided in paragraph (4), if the check or
        note is dishonored and the obligee of the obligation for
        which the instrument was taken is the person entitled to
        enforce the instrument, the obligee may enforce either the
        instrument or the obligation. In the case of an instrument of
        a third person which is negotiated to the obligee by the
        obligor, discharge of the obligor on the instrument also
        discharges the obligation.
            (4)  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.
        (c)  Other instruments taken for obligation.--If an
     instrument other than one described in subsection (a) or (b) is
     taken for an obligation, the effect is:
            (1)  that stated in subsection (a) if the instrument is
        one on which a bank is liable as maker or acceptor; or
            (2)  that stated in subsection (b) in any other case.

        Cross References.  Section 3310 is referred to in section
     2511 of this title.