182

LAIS OF MARYLAND

[Ch. 49

prior party (§ 3-208); or

(f)   Fraudulent and material alteration (§
3-407); or

(g)   Certification of a check (§ 3—411); or

(h) Acceptance varying a draft (§ 3—412); or

(i) Unexcused delay in presentment or notice
of dishonor or protest (§ 3—502).

(2)   Any party is also discharged from his liability
on an instrument 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
[subtitle] TITLE, except as otherwise provided with
respect to discharge for impairment of recourse or of
collateral (§ 3—606).

3—602. Effect of discharge against holder in due course.

No discharge of any party provided by this
[subtitle] TITLE 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
subsection does not, however, result in the discharge of
the liability

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