Rau obtains a loan from Security Funds and signs a note for the amount payable to the lender. Security Funds indorses the note and sells it to Tomas. With the intent to cancel Rau's obligation on the note, Tomas writes "Paid" across its face. This discharges the liability of

Question

Quizplus · Accepted Answer

Writing "Paid" across the face of the note with the intent to cancel the obligation discharges the liability of both Rau, the maker of the note, and Security Funds, the indorser.

Rau Obtains a Loan from Security Funds and Signs a Note