810 ILCS 5/3-604

    (810 ILCS 5/3-604) (from Ch. 26, par. 3-604)
    (Text of Section before amendment by P.A. 103-1036)
    Sec. 3-604. Discharge by cancellation or renunciation.

(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'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 writing.

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

(Source: P.A. 87-582; 87-1135.)

    (Text of Section after amendment by P.A. 103-1036)
    Sec. 3-604. Discharge by cancellation or renunciation.

(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'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 indorsement pursuant to subsection (a) does not affect the status and rights of a party derived from the indorsement.

(Source: P.A. 103-1036, eff. 1-1-25.)