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Terms Used In 13 Guam Code Ann. § 3601

  • Contract: A legal written agreement that becomes binding when signed.
  • 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
) The extent of the discharge of any party from liability on an instrument is governed by the sections on
(a) Payment or satisfaction (Section 3603); or

(b) Tender of payment (Section 3604); or
(c) Cancellation or renunciation (Section 3605); or

(d) Impairment of right of recourse or of collateral (Section
3606); or
(e) Reacquisition of the instrument by a prior party (Section
3208); or
(f) Fraudulent and material alteration (Section 3407); or

(g) Certification of a check (Section 3411); or

(h) Acceptance varying a draft (Section 3412); or
(i) Unexcused delay in presentment or notice of dishonor or protest (Section 3502).

COL120106
13 Guam Code Ann. UNIFORM COMMERCIAL CODE
DIV. 3 COMMERCIAL PAPER

(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 division, except as otherwise provided with respect to discharge for impairment of recourse or of collateral (Section 3606).

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