Sec. 120. When persons secondarily liable on the instrument are discharged. - Act 2031

A person secondarily liable on the instrument is discharged:

(a) By any act which discharges the instrument;
(b) By the intentional cancellation of his signature by the holder; 
(c) By the discharge of a prior party; 
(d) By a valid tender or payment made by a prior party; 
(e) By a release of the principal debtor unless the holder's right of recourse against the party secondarily liable is expressly reserved; 
(f) By any agreement binding upon the holder to extend the time of payment or to postpone the holder's right to enforce the instrument unless made with the assent of the party secondarily liable or unless the right of recourse against such party is expressly reserved. (Negotiable Instruments Law; Act 2031)

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