2025 Pennsylvania Consolidated & Unconsolidated Statutes
Title 13 - COMMERCIAL CODE
Chapter 36 - Discharge and Payment
Section 3604 - Discharge by cancellation or renunciation

(a) Methods of discharge.--

(1) A person entitled to enforce an instrument, with or without consideration, may discharge the obligation of a party to pay the instrument:

(i) 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

(ii) by agreeing not to sue or otherwise renouncing rights against the party by a signed writing.

(2) 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:

(i) information is extracted from the check, and an image of the check is made; and

(ii) subsequently, the information and image are transmitted for payment.

(b) Certain rights unaffected.--Cancellation or striking out of an indorsement pursuant to subsection (a) does not affect the status and rights of a party derived from the indorsement.

(July 1, 2024, P.L.450, No.41, eff. 60 days)

2024 Amendment. See section 1 of Act 41 in the appendix to this title for special provisions relating to findings and declarations.

Cross References. Section 3604 is referred to in section 3605 of this title.