Report No. 11
Chapter VII
Payment, Discharge and Interest
76. Discharge by payment.-
(1) An instrument is discharged by payment to the holder by or on behalf of the maker of a note, the drawer of a cheque, the drawer of a bill until acceptance or the acceptor.
[Section 78, modified]
(2) In the case of an instrument payable to bearer or indorsed in blank, payment in due course by the maker, drawer, acceptor or indorser discharges all the parties thereto.
[Section 82, modified]
(3) In the case of an instrument made, drawn, accepted or indorsed for accommodation, payment in due course by the party accommodated discharges the instrument.1
1. See section 59(3), BEA.
(4) Payment to the holder by any other parry discharges the liability of the party making the payment.
(5) Where an instrument has been materially altered but does not appear to have been so altered, payment thereof by a person liable to pay, and paying the same according to the apparent tenor thereof at the time of payment and otherwise in due course, shall discharge such person from all liability thereon; and such payment shall not be questioned by reason of the instrument having been altered.
[Section 89, part]
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