Skip to main content Skip to office menu Skip to footer
Minnesota Legislature

Office of the Revisor of Statutes

336.3-310 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 subsection (a), 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 paragraph (4), 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 which is negotiated to the obligee by the obligor, discharge of the obligor on
the instrument also discharges the obligation.
(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 subsection (a) or (b) is taken for an
obligation, the effect is (i) that stated in subsection (a) if the instrument is one on which a bank is
liable as maker or acceptor, or (ii) that stated in subsection (b) in any other case.
History: 1992 c 565 s 38