N.Y. Uniform Commercial Code 3-604 – Tender of Payment
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Section 3–604. Tender of Payment.
Terms Used In N.Y. Uniform Commercial Code 3-604
- Instrument: means a negotiable instrument. See N.Y. Uniform Commercial Code 3-102
- Recourse: An arrangement in which a bank retains, in form or in substance, any credit risk directly or indirectly associated with an asset it has sold (in accordance with generally accepted accounting principles) that exceeds a pro rata share of the bank's claim on the asset. If a bank has no claim on an asset it has sold, then the retention of any credit risk is recourse. Source: FDIC
(1) Any party making tender of full payment to a holder when or after it is due is discharged to the extent of all subsequent liability for interest, costs and attorney's fees.
(2) The holder's refusal of such tender wholly discharges any party who has a right of recourse against the party making the tender.
(3) Where the maker or acceptor of an instrument payable otherwise than on demand is able and ready to pay at every place of payment specified in the instrument when it is due, it is equivalent to tender.