- Alaska Statutes.
- Title 45. Trade and Commerce
- Chapter 3. Negotiable Instruments
- Section 310. Effect of Instrument On Obligation For Which Taken.
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. Enforcement of Lost, Destroyed, or Stolen Instrument.
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. Accord and Satisfaction By Use of Instrument.
AS 45.03.310. Effect of Instrument On Obligation For Which Taken.
- (a) Unless otherwise agreed, if a certified check, cashier's check, or teller's check is taken for an obligation, the
obligation is discharged to the same extent discharge would result if an amount of money equal to the amount of the
instrument were taken in payment of the obligation. Discharge of the obligation does not affect any liability that the
obligor may have as an endorser of the instrument.
- (b) Unless otherwise agreed and except as provided in (a) of this section, if a note or an uncertified check is taken for
an obligation, the obligation is suspended to the same extent the obligation would be discharged if an amount of money
equal to the amount of the instrument were taken, and the following rules apply:
- (1) in the case of an uncertified check, suspension of the obligation continues until dishonor of the check or until it is
paid or certified; payment or certification of the check results in discharge of the obligation to the extent of the
amount of the check;
- (2) in the case of a note, suspension of the obligation continues until dishonor of the note or until it is paid; payment
of the note results in discharge of the obligation to the extent of the payment;
- (3) except as provided in (4) of this subsection, if the check or note is dishonored and the obligee of the obligation for
which the instrument was taken is the person entitled to enforce the instrument, the obligee may enforce either the
instrument or the obligation; in the case of an instrument of a third person that is negotiated to the obligee by the
obligor, discharge of the obligor on the instrument also discharges the obligation; and
- (4) if the person entitled to enforce the instrument taken for an obligation is a person other than the obligee, the
obligee may not enforce the obligation to the extent the obligation is suspended; if the obligee is the person entitled
to enforce the instrument but no longer has possession of it because it was lost, stolen, or destroyed, the obligation
may not be enforced to the extent of the amount payable on the instrument, and to that extent the obligee's rights
against the obligor are limited to enforcement of the instrument.
- (c) If an instrument other than one described in (a) or (b) of this section is taken for an obligation, the effect is that
stated in (a) if the instrument is one on which a bank is liable as maker or acceptor, or that stated in (b) in any
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