                                 CODE OF VIRGINIA

DISCHARGE BY CANCELLATION OR RENUNCIATION (§ 8.3A-604)

a. A person entitled to enforce an instrument, with or without consideration,
may discharge the obligation of a party to pay the instrument (i) by an
intentional voluntary act, such as surrender of the instrument to the party,
destruction, mutilation, or cancellation of the instrument, cancellation or
striking out of the party&#8217;s signature, or the addition of words to the
instrument indicating discharge, or (ii) by agreeing not to sue or otherwise
renouncing rights against the party by a signed record. The obligation of a
party to pay a check is not discharged solely by destruction of the check in
connection with a process in which information is extracted from the check and
an image of the check is made and, subsequently, the information and image are
transmitted for payment.

b. Cancellation or striking out of an endorsement pursuant to subsection (a)
does not affect the status and rights of a party derived from the endorsement.

HISTORY: Code 1950, §§ 6-400, 6-472, 6-475, 6-476; 1964, c. 219, § 8.3-605;
1992, c. 693; 2024, c. 652.