40. Discharge of endorser's liability.- Where the holder of a negotiable instrument, without the consent of the endorser, destroys or impairs the endorser's remedy against a prior party, the endorser is discharged from liability to the holder to the same extent as if the instrument had been paid at maturity. Illustration First endorsement, "B". Second endorsement, "Peter Williams". Third endorsement, "Wright & Co.". Fourth endorsement "John Rozario". This bill A puts in suit against John Rozario and strikes out, without John Rosario's consent, the endorsements by Peter Williams and Wright & Co. A is not entitled to recover any thing from John Rozario. |
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