MARVIN MANDEL, Governor

183

(b) Of a party (other than an intermediary
bank or a payor bank which is not a [depository]
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 instruments to such
a person gives him the rights of a transferee (§ 3—201).

3—604. Tender of payment.

(1)    Any party making tender of full payment to a
holder when or after it is due is discharged to the
extent of all subsequent liability for interest, costs
and attorney's fees.

(2)   The holder's refusal of such tender wholly
discharges any party who has a right of recourse against
the party making the tender.

(3)   where the maker or acceptor of an instrument
payable otherwise than on demand is able and ready to pay
at every place of payment specified in the instrument
when it is due, it is equivalent to tender.

3—605. Cancellation and renunciation.

(1)   The holder of an instrument may even without
consideration discharge any party

(a)   In any manner apparent on the face of the
instrument or the indorsement, as by intentionally
cancelling the instrument or the party's signature by
destruction or mutilation, or by striking out the party's
signature; or

(b)    By renouncing his rights by a writing
signed and delivered or by surrender of the instrument to
the party to be discharged.

(2)   Neither cancellation nor renunciation without
surrender of the instrument affects the title thereto.

3-606. Impairment of recourse or of collateral.

(1) The holder discharges any party to the
instrument to the extent that without such party's
consent the holder

(a) Without express reservation of rights
releases or agrees not to sue any person against whom the