856                             LAWS OF MARYLAND                      [CH. 538

(b)   tender of payment (Section 3—604);, or

(c)  cancellation or renunciation (Section 3—605); or

(d)  impairment of right of recourse or of collateral (Section 3—
606); or

(e)  reacquisition of the instrument by a prior party (Section 3—
208); or

(f)  fraudulent and material alteration (Section 3—407); or

(g)  certification of a check (Section 3—411); or
(h) acceptance varying a draft (Section 3—412); or

(i)  unexcused delay in presentment or notice of dishonor or pro-
test (Section 3—502).

(2)  Any party is also discharged from his liability on an instru-
ment to another party by any other act or agreement with such party
which would discharge his simple contract for the payment of money.

(3)   The liability of all parties is discharged when any party who
has himself no right of action or recourse on the instrument

(a)  reacquires the instrument in his own right; or

(b)  is discharged under any provision of this Sub-title, except
as otherwise provided with respect to discharge for impairment of
recourse or of collateral (Section 3—606).

3—602. Effect of Discharge Against Holder in Due Course.

No discharge of any party provided by this Subtitle is effective
against a subsequent holder in due course unless he has notice thereof
when he takes the instrument.

3—603. Payment or Satisfaction.

(1)   The liability of any party is discharged to the extent of his
payment or satisfaction to the holder even though it is made with
knowledge of a claim of another person to the instrument unless
prior to such payment or satisfaction the person making the claim
either supplies indemnity deemed adequate by the party seeking the
discharge or enjoins payment or satisfaction by order of a court of
competent jurisdiction in an action in which the adverse claimant
and the holder are parties. This sub-section does not, however, result
in the discharge of the liability

(a)   of a party who in bad faith pays or satisfies a holder who ac-
quired the instrument by theft or who (unless having the rights of
a holder in due course) holds through one who so acquired it; or

(b)  of a party (other than an intermediary bank or a payor bank
which is not a depositary bank), who pays or satisfies the holder of
an instrument which has been restrictively indorsed in a manner not
consistent with the terms of such restrictive indorsement.

(2)  Payment or satisfaction may be made with the consent of
the holder by any person including a stranger to the instrument.
Surrender of the instrument to such a person gives him the rights
of a transferee (Section 3—201).