{"data":{"id":"us-ky/krs-355.3-310","jurisdiction":"us-ky","citation":"KRS 355.3-310","heading":"Effect of instrument on obligation for which taken.","body":"(1) Unless otherwise agreed, if a certified check, cashier's check, or teller's check is\ntaken for an obligation, the obligation is discharged to the same extent discharge\nwould result if an amount of money equal to the amount of the instrument were\ntaken in p ayment of the obligation. Discharge of the obligation does not affect any\nliability that the obligor may have as an indorser of the instrument.\n(2) Unless otherwise agreed and except as provided in subsection (1) of this section, if\na note or an uncertified check is taken for an obligation, the obligation is suspended\nto the same extent the obligation would be discharged if an amount of money equal\nto the amount of the instrument were taken, and the following rules apply:\n(a) In the case of an uncertified c heck, suspension of the obligation continues\nuntil dishonor of the check or until it is paid or certified. Payment or\ncertification of the check results in discharge of the obligation to the extent of\nthe amount of the check.\n(b) In the case of a note, sus pension of the obligation continues until dishonor of\nthe note or until it is paid. Payment of the note results in discharge of the\nobligation to the extent of the payment.\n(c) Except as provided in paragraph (d) of this subsection, if the check or note is\ndishonored and the obligee of the obligation for which the instrument was\ntaken is the person entitled to enforce the instrument, the obligee may enforce\neither the instrument or the obligation. In the case of an instrument of a third\nperson which is nego tiated to the obligee by the obligor, discharge of the\nobligor on the instrument also discharges the obligation.\n(d) If the person entitled to enforce the instrument taken for an obligation is a\nperson other than the obligee, the obligee may not enforce th e obligation to\nthe extent the obligation is suspended. If the obligee is the person entitled to\nenforce the instrument but no longer has possession of it because it was lost,\nstolen, or destroyed, the obligation may not be enforced to the extent of the\namount payable on the instrument, and to that extent the obligee's rights\nagainst the obligor are limited to enforcement of the instrument.\n(3) If an instrument other than one described in subsection (1) or (2) of this section is\ntaken for an obligation, the effect is:\n(a) That stated in subsection (1) of this section if the instrument is one (1) on\nwhich a bank is liable as maker or acceptor; or\n(b) That stated in subsection (2) of this section in any other case.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=33468","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:44Z","sha256":"f1c3da957cafa20c0a2a29a1e5ccd09dab0d3e17c4067c5dec2115065b187b1b","source_id":"us-ky","stale":false,"prev":"us-ky/krs-355.3-309","next":"us-ky/krs-355.3-311"},"notice":"GroundRules: Original legal text. Not legal advice."}