MARVIN MANDEL, Governor                                   185

(1)    Where a draft is drawn in a set of parts, each
of which is numbered and expressed to be an order only if
no other part has been honored, the whole of the parts
constitutes one draft but a taker of any part may become
a holder in due course of the draft.

(2)   Any person who negotiates, indorses or accepts
a single part of a draft drawn in a set thereby becomes
liable to any holder in due coarse of that part as if it
were the whole set, bat as between different holders in
due course to whom different parts have been negotiated
the holder whose title first accrues has all rights to
the draft and its proceeds.

(3)   As against the drawee the first presented part
of a draft drawn in a set is the part entitled to
payment, or if a time draft to acceptance and payment.
Acceptance of any subsequently presented part renders the
drawee liable thereon under subsection (2). With
respect both to a holder and to the drawer payment of a
subsequently presented part of a draft payable at sight
has the same effect as payment of a check notwithstanding
an effective stop order (§ 4—407).

(4)   Except as otherwise provided in this section,
where any part of a draft in a set is discharged by
payment or otherwise the whole draft is discharged.

3—802. Effect of instrument on obligation for which it
is given.

(1)    Unless otherwise agreed where an instrument is
taken for an underlying obligation

fa)   The obligation is pro tanto discharged if
a bank is drawer, maker or acceptor of the instrument and
there is no recourse on the instrument against the
underlying obligor; and

(b)    In any other case the obligation is
suspended pro tanto until the instrument is due or if it
is payable on demand until its presentment. If the
instrument is dishonored action may be maintained on
either the instrument or the obligation; discharge of the
underlying obligor on the instrument also discharges him
on the obligation.

(2)   The taking in good faith of a check which is
not postdated does not of itself so extend the time on
the original obligation as to discharge a surety.

3—803. Notice to third party.

Where a defendant is sued for breach of an