(a) The obligation of a party to pay the instrument is discharged as stated in this article or by an act or agreement with the party which would discharge an obligation to pay money under a simple contract.(b) Discharge of the obligation of a party is not effective against a person acquiring rights of a holder in due course of the instrument without notice of the discharge.
Alabama Legal Code
Section 7-3-601 - Discharge and Effect of Discharge
Source: https://alison.legislature.state.al.us/code-of-alabama?section=7-3-601· Version 2026