§ 25-3-604. Discharge by cancellation or renunciation. - North Carolina Statutes

§25‑3‑604.  Discharge by cancellation or renunciation.

(a)        A person entitledto enforce an instrument, with or without consideration, may discharge theobligation of a party to pay the instrument (i) by an intentional voluntaryact, such as surrender of the instrument to the party, destruction, mutilation,or cancellation of the instrument, cancellation or striking out of the party'ssignature, or the addition of words to the instrument indicating discharge, or(ii) by agreeing not to sue or otherwise renouncing rights against the party bya signed writing.

(b)        Cancellation orstriking out of an endorsement pursuant to subsection (a) of this section doesnot affect the status and rights of a party derived from the indorsement. (1899,c. 733, ss. 48, 119, 120, 122, 123; Rev., ss. 2197, 2269, 2270, 2272, 2273;C.S., ss. 3029, 3101, 3102, 3104, 3105; 1965, c. 700, s. 1; 1995, c. 232, s.1.)