If a person entitled to enforce an instrument refuses a tender of payment,the refusal wholly discharges to the extent of the amount of tender every party who has a right of recourse against the party making tender.

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This is in accordance with Section 3-311 of the Uniform Commercial Code (UCC) which provides that if the person entitled to enforce an instrument refuses a tender of payment, then to the extent of the amount of the tender, every party who has a right of recourse against the party making the tender is discharged.

If a Person Entitled to Enforce an Instrument Refuses a Tender