A holder who either (1)releases an obligor form liability or (2)surrenders the collateral without the consent of the parties who would benefit thereby does not discharge those parties from their obligation on the instrument.

Question

Quizplus · Accepted Answer

A holder who releases an obligor from liability or surrenders the collateral without the consent of the parties who would benefit thereby typically discharges those parties from their obligation on the instrument.

A Holder Who Either (1)releases an Obligor Form Liability or (2)surrenders