Section 3--601. Discharge of Parties

(1)  The  extent  of  the  discharge of any party from liability on an
  instrument is governed by the sections on
         (a) payment or satisfaction (Section 3--603); or
         (b) tender of payment (Section 3--604); or
         (c) cancellation or renunciation (Section 3--605); or
         (d) impairment of right of recourse  or  of  collateral  (Section              3--606); or
         (e) reacquisition  of  the  instrument  by a prior party (Section              3--208); or
         (f) fraudulent and material alteration (Section 3--407); or
         (g) certification of a check (Section 3--411); or
         (h) acceptance varying a draft (Section 3--412); or
         (i) unexcused delay in  presentment  or  notice  of  dishonor  or
             protest (Section 3--502).
    (2)  Any  party is also discharged from his liability on an instrument
  to another party by any other act or agreement  with  such  party  which
  would discharge his simple contract for the payment of money.
    (3)  The liability of all parties is discharged when any party who has
  himself no right of action or recourse on the instrument
         (a) reacquires the instrument in his own right; or
         (b) is discharged under any provision of this Article, except  as
             otherwise  provided  with respect to discharge for impairment
             of recourse or of collateral (Section 3--606).