292 BILLS OF EXCHANGE AND PROMISSORY NOTES. [ART. 13

1904, art. 13, sec. 137. 1898, ch. 119.

137. Where any negotiable instrument has been dishonored it may
be protested for non-acceptance or non-payment, as the case may be; but
protest is not required, except in the case of foreign bills of exchange.

CHAPTER IX—Discharge of Negotiable Instruments.

Ibid. sec. 138. 1898, ch. 119.

138. A negotiable instrument is discharged:

1. By payment in due course by or on behalf of the principal debtor;

2. By payment in due course by the party accommodated, where
the instrument is made or accepted for accommodation;

3. By the intentional cancellation thereof by the holder;
4. By any other act which will discharge a simple contract for the
payment of money;

5. When the principal debtor becomes the holder of the instrument
at or after maturity in his own right.

The methods of discharge herein enumerated are exclusive of a discharge
in any other way. This applies to a surety who, however by terms of a
note, is primarily liable. Vanderford v. Farmers', etc., Bank, 105 Md. 167.

Ibid. sec. 139. 1898. ch. 139.
139. A person secondarily liable on the instrument is discharged :

1. By any act which discharges the instrument;

2. By the intentional cancellation of his signature by the holder;

3. By the discharge of a prior party;

4. By a valid tender of payment made by a prior party;

5. By a release of the principal debtor, unless the holder's right of
recourse against the party secondarily liable is expressly reserved;

6. By any agreement binding upon the holder to extend the time of
payment, or to postpone the holder's right to enforce the instrument,
unless the right of recourse against such party is expressly reserved.

The methods of discharge herein enumerated are exclusive of a discharge
in any other way. This applies to a surety who. however by the terms of
a note, is primarily liable. Vanderford v. Farmers', etc.. Bank, 105 Md. 167.

Ibid. sec. 140. 1898, ch. 119.

140. Where the instrument is paid by a party secondarily liable
thereon, it is not discharged; but the party so paying it is remitted to
his former rights as regards all prior parties, and he may strike out his
own and all subsequent indorsements, and again negotiate the instru-
ment, except:

1. Where it is payable to the order of a third person, and has been
paid by the drawer; and,

2. Where it was made or accepted for acccommodation, and has been
paid by the party accommodated.