{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/8.3A-605.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/8.3A-605.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/8.3A-605.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/8.3A-605.html"}],"law_id":71965,"edition_id":1,"section_id":71965,"structure_id":16592,"section_number":"8.3A-605","catch_line":"Discharge of endorsers and accommodation parties","history":"Code 1950, \u00a7 6-473; 1964, c. 219, \u00a7 8.3-606; 1992, c. 693.","full_text":"a\n\nIn this section, the term “endorser” includes a drawer having the obligation described in § 8.3A-414 (d).b\n\nDischarge, under § 8.3A-604, of the obligation of a party to pay an instrument does not discharge the obligation of an endorser or accommodation party having a right of recourse against the discharged party.c\n\nIf a person entitled to enforce an instrument agrees, with or without consideration, to an extension of the due date of the obligation of a party to pay the instrument, the extension discharges an endorser or accommodation party having a right of recourse against the party whose obligation is extended to the extent the endorser or accommodation party proves that the extension caused loss to the endorser or accommodation party with respect to the right of recourse.d\n\nIf a person entitled to enforce an instrument agrees, with or without consideration, to a material modification of the obligation of a party other than an extension of the due date, the modification discharges the obligation of an endorser or accommodation party having a right of recourse against the person whose obligation is modified to the extent the modification causes loss to the endorser or accommodation party with respect to the right of recourse. The loss suffered by the endorser or accommodation party as a result of the modification is equal to the amount of the right of recourse unless the person enforcing the instrument proves that no loss was caused by the modification or that the loss caused by the modification was an amount less than the amount of the right of recourse.e\n\nIf the obligation of a party to pay an instrument is secured by an interest in collateral and a person entitled to enforce the instrument impairs the value of the interest in collateral, the obligation of an endorser or accommodation party having a right of recourse against the obligor is discharged to the extent of the impairment. The value of an interest in collateral is impaired to the extent (i) the value of the interest is reduced to an amount less than the amount of the right of recourse of the party asserting discharge, or (ii) the reduction in value of the interest causes an increase in the amount by which the amount of the right of recourse exceeds the value of the interest. The burden of proving impairment is on the party asserting discharge.f\n\nIf the obligation of a party is secured by an interest in collateral not provided by an accommodation party and a person entitled to enforce the instrument impairs the value of the interest in collateral, the obligation of any party who is jointly and severally liable with respect to the secured obligation is discharged to the extent the impairment causes the party asserting discharge to pay more than that party would have been obliged to pay, taking into account rights of contribution, if impairment had not occurred. If the party asserting discharge is an accommodation party not entitled to discharge under subsection (e), the party is deemed to have a right to contribution based on joint and several liability rather than a right to reimbursement. The burden of proving impairment is on the party asserting discharge.g\n\nUnder subsection (e) or (f), impairing value of an interest in collateral includes (i) failure to obtain or maintain perfection or recordation of the interest in collateral, (ii) release of collateral without substitution of collateral of equal value, (iii) failure to perform a duty to preserve the value of collateral owed, under Title 8.9A or other law, to a debtor or surety or other person secondarily liable, or (iv) failure to comply with applicable law in disposing of collateral.h\n\nAn accommodation party is not discharged under subsection (c), (d), or (e) unless the person entitled to enforce the instrument knows of the accommodation or has notice under § 8.3A-419 (c) that the instrument was signed for accommodation.i\n\nA party is not discharged under this section if (i) the party asserting discharge consents to the event or conduct that is the basis of the discharge, or (ii) the instrument or a separate agreement of the party provides for waiver of discharge under this section either specifically or by general language indicating that parties waive defenses based on suretyship or impairment of collateral.","order_by":null,"text":{"0":{"id":259315,"text":"In this section, the term “endorser” includes a drawer having the obligation described in § 8.3A-414 (d).","type":"section","prefixes":["a"],"prefix":"a","entire_prefix":"a","prefix_anchor":"a","level":1,"next_prefix":"b"},"1":{"id":259316,"text":"Discharge, under § 8.3A-604, of the obligation of a party to pay an instrument does not discharge the obligation of an endorser or accommodation party having a right of recourse against the discharged party.","type":"section","prefixes":["b"],"prefix":"b","entire_prefix":"b","prefix_anchor":"b","level":1,"prior_prefix":"a","next_prefix":"c"},"2":{"id":259317,"text":"If a person entitled to enforce an instrument agrees, with or without consideration, to an extension of the due date of the obligation of a party to pay the instrument, the extension discharges an endorser or accommodation party having a right of recourse against the party whose obligation is extended to the extent the endorser or accommodation party proves that the extension caused loss to the endorser or accommodation party with respect to the right of recourse.","type":"section","prefixes":["c"],"prefix":"c","entire_prefix":"c","prefix_anchor":"c","level":1,"prior_prefix":"b","next_prefix":"d"},"3":{"id":259318,"text":"If a person entitled to enforce an instrument agrees, with or without consideration, to a material modification of the obligation of a party other than an extension of the due date, the modification discharges the obligation of an endorser or accommodation party having a right of recourse against the person whose obligation is modified to the extent the modification causes loss to the endorser or accommodation party with respect to the right of recourse. The loss suffered by the endorser or accommodation party as a result of the modification is equal to the amount of the right of recourse unless the person enforcing the instrument proves that no loss was caused by the modification or that the loss caused by the modification was an amount less than the amount of the right of recourse.","type":"section","prefixes":["d"],"prefix":"d","entire_prefix":"d","prefix_anchor":"d","level":1,"prior_prefix":"c","next_prefix":"e"},"4":{"id":259319,"text":"If the obligation of a party to pay an instrument is secured by an interest in collateral and a person entitled to enforce the instrument impairs the value of the interest in collateral, the obligation of an endorser or accommodation party having a right of recourse against the obligor is discharged to the extent of the impairment. The value of an interest in collateral is impaired to the extent (i) the value of the interest is reduced to an amount less than the amount of the right of recourse of the party asserting discharge, or (ii) the reduction in value of the interest causes an increase in the amount by which the amount of the right of recourse exceeds the value of the interest. The burden of proving impairment is on the party asserting discharge.","type":"section","prefixes":["e"],"prefix":"e","entire_prefix":"e","prefix_anchor":"e","level":1,"prior_prefix":"d","next_prefix":"f"},"5":{"id":259320,"text":"If the obligation of a party is secured by an interest in collateral not provided by an accommodation party and a person entitled to enforce the instrument impairs the value of the interest in collateral, the obligation of any party who is jointly and severally liable with respect to the secured obligation is discharged to the extent the impairment causes the party asserting discharge to pay more than that party would have been obliged to pay, taking into account rights of contribution, if impairment had not occurred. If the party asserting discharge is an accommodation party not entitled to discharge under subsection (e), the party is deemed to have a right to contribution based on joint and several liability rather than a right to reimbursement. The burden of proving impairment is on the party asserting discharge.","type":"section","prefixes":["f"],"prefix":"f","entire_prefix":"f","prefix_anchor":"f","level":1,"prior_prefix":"e","next_prefix":"g"},"6":{"id":259321,"text":"Under subsection (e) or (f), impairing value of an interest in collateral includes (i) failure to obtain or maintain perfection or recordation of the interest in collateral, (ii) release of collateral without substitution of collateral of equal value, (iii) failure to perform a duty to preserve the value of collateral owed, under Title 8.9A or other law, to a debtor or surety or other person secondarily liable, or (iv) failure to comply with applicable law in disposing of collateral.","type":"section","prefixes":["g"],"prefix":"g","entire_prefix":"g","prefix_anchor":"g","level":1,"prior_prefix":"f","next_prefix":"h"},"7":{"id":259322,"text":"An accommodation party is not discharged under subsection (c), (d), or (e) unless the person entitled to enforce the instrument knows of the accommodation or has notice under § 8.3A-419 (c) that the instrument was signed for accommodation.","type":"section","prefixes":["h"],"prefix":"h","entire_prefix":"h","prefix_anchor":"h","level":1,"prior_prefix":"g","next_prefix":"i"},"8":{"id":259323,"text":"A party is not discharged under this section if (i) the party asserting discharge consents to the event or conduct that is the basis of the discharge, or (ii) the instrument or a separate agreement of the party provides for waiver of discharge under this section either specifically or by general language indicating that parties waive defenses based on suretyship or impairment of collateral.","type":"section","prefixes":["i"],"prefix":"i","entire_prefix":"i","prefix_anchor":"i","level":1,"prior_prefix":"h"}},"ancestry":[{"id":16592,"edition_id":1,"name":"Discharge and Payment","identifier":"6","label":"part","depth":2,"order_by":1,"parent_id":13054,"metadata":{},"date_created":"2026-06-26 04:25:52","date_modified":"2026-06-26 04:25:52","permalink":{"id":282973,"object_type":"structure","relational_id":16592,"identifier":"6","token":"8.3A\/6","url":"\/8.3A\/6\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13054,"edition_id":1,"name":"Commercial Code \u2014 Negotiable Instruments","identifier":"8.3A","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:44:11","date_modified":"2026-06-26 03:44:11","permalink":{"id":282705,"object_type":"structure","relational_id":13054,"identifier":"8.3A","token":"8.3A","url":"\/8.3A\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":75219,"structure_id":16592,"section_number":"8.3A-601","catch_line":"Discharge and effect of discharge","url":"\/8.3A-601\/","token":"8.3A\/6\/8.3A-601","metadata":false},{"id":86259,"structure_id":16592,"section_number":"8.3A-602","catch_line":"Payment","url":"\/8.3A-602\/","token":"8.3A\/6\/8.3A-602","metadata":false},{"id":74354,"structure_id":16592,"section_number":"8.3A-603","catch_line":"Tender of payment","url":"\/8.3A-603\/","token":"8.3A\/6\/8.3A-603","metadata":false},{"id":83993,"structure_id":16592,"section_number":"8.3A-604","catch_line":"Discharge by cancellation or renunciation","url":"\/8.3A-604\/","token":"8.3A\/6\/8.3A-604","metadata":false},{"id":71965,"structure_id":16592,"section_number":"8.3A-605","catch_line":"Discharge of endorsers and accommodation parties","url":"\/8.3A-605\/","token":"8.3A\/6\/8.3A-605","metadata":false}],"previous_section":{"id":83993,"structure_id":16592,"section_number":"8.3A-604","catch_line":"Discharge by cancellation or renunciation","url":"\/8.3A-604\/","token":"8.3A\/6\/8.3A-604","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/8.3A-605\/","history_text":"

The record of this law\u2019s original creation isn\u2019t available online. It has been modified 2 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 1964, chapter 219; in 1992, chapter 693.<\/p>","references":[{"id":62031,"section_number":"8.3A-419","catch_line":"Instruments signed for accommodation","order_by":null,"url":"\/8.3A-419\/"}],"refers_to":[{"id":81363,"section_number":"8.3A-414","catch_line":"Obligation of drawer","order_by":null,"url":"\/8.3A-414\/"},{"id":62031,"section_number":"8.3A-419","catch_line":"Instruments signed for accommodation","order_by":null,"url":"\/8.3A-419\/"},{"id":83993,"section_number":"8.3A-604","catch_line":"Discharge by cancellation or renunciation","order_by":null,"url":"\/8.3A-604\/"}],"permalink":{"id":282991,"object_type":"law","relational_id":71965,"identifier":"8.3A-605","token":"8.3A\/6\/8.3A-605","url":"\/8.3A-605\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/8.3A-605\/","token":"8.3A\/6\/8.3A-605","dublin_core":{"Title":"Discharge of endorsers and accommodation parties","Type":"Text","Format":"text\/html","Identifier":"\u00a7 8.3A-605","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

a.<\/span> In this section, the term “endorser<\/span>” includes a drawer having the obligation described in § 8.3A-414<\/a> (d). <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

b.<\/span> Discharge, under § 8.3A-604<\/a>, of the obligation of a party<\/span> to pay an instrument does not discharge the obligation of an endorser<\/span> or accommodation party<\/span> having a right of recourse against the discharged party<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

c.<\/span> If a person entitled to enforce an instrument agrees, with or without consideration, to an extension of the due date of the obligation of a party<\/span> to pay the instrument, the extension discharges an endorser<\/span> or accommodation party<\/span> having a right of recourse against the party<\/span> whose obligation is extended to the extent the endorser<\/span> or accommodation party<\/span> proves that the extension caused loss to the endorser<\/span> or accommodation party<\/span> with respect to the right of recourse. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

d.<\/span> If a person entitled to enforce an instrument agrees, with or without consideration, to a material<\/span> modification of the obligation of a party<\/span> other than an extension of the due date, the modification discharges the obligation of an endorser<\/span> or accommodation party<\/span> having a right of recourse against the person whose obligation is modified to the extent the modification causes loss to the endorser<\/span> or accommodation party<\/span> with respect to the right of recourse. The loss suffered by the endorser<\/span> or accommodation party<\/span> as a result of the modification is equal to the amount of the right of recourse unless the person enforcing the instrument proves that no loss was caused by the modification or that the loss caused by the modification was an amount less than the amount of the right of recourse. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

e.<\/span> If the obligation of a party<\/span> to pay an instrument is secured by an interest in collateral<\/span> and a person entitled to enforce the instrument impairs the value of the interest in collateral<\/span>, the obligation of an endorser<\/span> or accommodation party<\/span> having a right of recourse against the obligor is discharged to the extent of the impairment. The value of an interest in collateral<\/span> is impaired to the extent (i) the value of the interest is reduced to an amount less than the amount of the right of recourse of the party<\/span> asserting discharge, or (ii) the reduction in value of the interest causes an increase in the amount by which the amount of the right of recourse exceeds the value of the interest. The burden of proving impairment is on the party<\/span> asserting discharge. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

f.<\/span> If the obligation of a party<\/span> is secured by an interest in collateral<\/span> not provided by an accommodation party<\/span> and a person entitled to enforce the instrument impairs the value of the interest in collateral<\/span>, the obligation of any party<\/span> who is jointly and severally liable with respect to the secured obligation is discharged to the extent the impairment causes the party<\/span> asserting discharge to pay more than that party<\/span> would have been obliged to pay, taking into account rights of contribution, if impairment had not occurred. If the party<\/span> asserting discharge is an accommodation party<\/span> not entitled to discharge under subsection (e), the party<\/span> is deemed to have a right to contribution based on joint and several liability rather than a right to reimbursement. The burden of proving impairment is on the party<\/span> asserting discharge. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

g.<\/span> Under subsection (e) or (f), impairing value of an interest in collateral<\/span> includes (i) failure to obtain or maintain perfection or recordation of the interest in collateral<\/span>, (ii) release of collateral<\/span> without substitution of collateral<\/span> of equal value, (iii) failure to perform a duty to preserve the value of collateral<\/span> owed, under Title 8.9A or other law<\/span>, to a debtor or surety<\/span> or other person secondarily liable, or (iv) failure to comply with applicable law<\/span> in disposing of collateral<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

h.<\/span> An accommodation party<\/span> is not discharged under subsection (c), (d), or (e) unless the person entitled to enforce the instrument knows of the accommodation or has notice under § 8.3A-419<\/a> (c) that the instrument was signed for accommodation. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

i.<\/span> A party<\/span> is not discharged under this section if (i) the party<\/span> asserting discharge consents to the event or conduct that is the basis of the discharge, or (ii) the instrument or a separate agreement of the party<\/span> provides for waiver<\/span> of discharge under this section either specifically or by general language indicating that parties waive<\/span> defenses based on suretyship or impairment of collateral<\/span>. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nDISCHARGE OF ENDORSERS AND ACCOMMODATION PARTIES (\u00a7 8.3A-605)\n\na. In this section, the term “endorser” includes a drawer having the\nobligation described in § 8.3A-414 (d).\n\nb. Discharge, under § 8.3A-604, of the obligation of a party to pay an\ninstrument does not discharge the obligation of an endorser or accommodation\nparty having a right of recourse against the discharged party.\n\nc. If a person entitled to enforce an instrument agrees, with or without\nconsideration, to an extension of the due date of the obligation of a party to\npay the instrument, the extension discharges an endorser or accommodation party\nhaving a right of recourse against the party whose obligation is extended to the\nextent the endorser or accommodation party proves that the extension caused loss\nto the endorser or accommodation party with respect to the right of recourse.\n\nd. If a person entitled to enforce an instrument agrees, with or without\nconsideration, to a material modification of the obligation of a party other\nthan an extension of the due date, the modification discharges the obligation of\nan endorser or accommodation party having a right of recourse against the person\nwhose obligation is modified to the extent the modification causes loss to the\nendorser or accommodation party with respect to the right of recourse. The loss\nsuffered by the endorser or accommodation party as a result of the modification\nis equal to the amount of the right of recourse unless the person enforcing the\ninstrument proves that no loss was caused by the modification or that the loss\ncaused by the modification was an amount less than the amount of the right of\nrecourse.\n\ne. If the obligation of a party to pay an instrument is secured by an interest\nin collateral and a person entitled to enforce the instrument impairs the value\nof the interest in collateral, the obligation of an endorser or accommodation\nparty having a right of recourse against the obligor is discharged to the extent\nof the impairment. The value of an interest in collateral is impaired to the\nextent (i) the value of the interest is reduced to an amount less than the\namount of the right of recourse of the party asserting discharge, or (ii) the\nreduction in value of the interest causes an increase in the amount by which the\namount of the right of recourse exceeds the value of the interest. The burden of\nproving impairment is on the party asserting discharge.\n\nf. If the obligation of a party is secured by an interest in collateral not\nprovided by an accommodation party and a person entitled to enforce the\ninstrument impairs the value of the interest in collateral, the obligation of\nany party who is jointly and severally liable with respect to the secured\nobligation is discharged to the extent the impairment causes the party asserting\ndischarge to pay more than that party would have been obliged to pay, taking\ninto account rights of contribution, if impairment had not occurred. If the\nparty asserting discharge is an accommodation party not entitled to discharge\nunder subsection (e), the party is deemed to have a right to contribution based\non joint and several liability rather than a right to reimbursement. The burden\nof proving impairment is on the party asserting discharge.\n\ng. Under subsection (e) or (f), impairing value of an interest in collateral\nincludes (i) failure to obtain or maintain perfection or recordation of the\ninterest in collateral, (ii) release of collateral without substitution of\ncollateral of equal value, (iii) failure to perform a duty to preserve the value\nof collateral owed, under Title 8.9A or other law, to a debtor or surety or\nother person secondarily liable, or (iv) failure to comply with applicable law\nin disposing of collateral.\n\nh. An accommodation party is not discharged under subsection (c), (d), or (e)\nunless the person entitled to enforce the instrument knows of the accommodation\nor has notice under § 8.3A-419 (c) that the instrument was signed for\naccommodation.\n\ni. A party is not discharged under this section if (i) the party asserting\ndischarge consents to the event or conduct that is the basis of the discharge,\nor (ii) the instrument or a separate agreement of the party provides for waiver\nof discharge under this section either specifically or by general language\nindicating that parties waive defenses based on suretyship or impairment of\ncollateral.\n\nHISTORY: Code 1950, \u00a7 6-473; 1964, c. 219, \u00a7 8.3-606; 1992, c. 693.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}