When are the warranties of a negotiable instrument discharged?

Transferor, indorser, and presenter liability is discharged by any manner that would effectively discharge a partys obligation on a contract at common law. These provisions may relieve the obligation of a payor or payee, but could still subject transferors or indorsers to liability.

Note: Indorser and accommodation party liability may be discharged by the same means that a suretys liability is discharged.

Example: Valid payment discharges the obligations of payor of a negotiable instrument. Other methods include tender of payment and refusal, cancellation or renunciation of the obligations, material and fraudulent alteration of the instrument, certification, acceptance varying a draft, reacquisition, and, in some cases, unexcused delay in giving notice of presentment or dishonor.