§12A-3-605.

§12A-3-605.
   
          DISCHARGE OF INDORSERS, ACCOMMODATION, AND OTHER PARTIES
                                      
   (a) In this section, the term "indorser" includes a drawer having the
   obligation described in subsection (d) of Section 3-414 of this title.
   
   (b) Discharge, under Section 3-604 of this title, of the obligation of
   a party to pay an instrument does not discharge the obligation of an
   indorser or accommodation party having a right of recourse against the
   discharged party.
   
   (c) If a person entitled to enforce an instrument agrees, with or
   without consideration, to an extension of the due date of the
   obligation of a party to pay the instrument, the extension discharges
   an indorser or accommodation party having a right of recourse against
   the party whose obligation is extended to the extent the indorser or
   accommodation party proves that the extension caused loss to the
   indorser or accommodation party with respect to the right of recourse.
   
   (d) If a person entitled to enforce an instrument agrees, with or
   without consideration, to a material modification of the obligation of
   a party other than an extension of the due date, the modification
   discharges the obligation of an indorser or accommodation party having
   a right of recourse against the person whose obligation is modified to
   the extent the modification causes loss to the indorser or
   accommodation party with respect to the right of recourse. The loss
   suffered by the indorser or accommodation party as a result of the
   modification is equal to the amount of the right of recourse unless
   the person enforcing the instrument proves that no loss was caused by
   the modification or that the loss caused by the modification was an
   amount less than the amount of the right of recourse.
   
   (e) If the obligation of a party to pay an instrument is secured by an
   interest in collateral and a person entitled to enforce the instrument
   impairs the value of the interest in collateral, the obligation of an
   indorser or accommodation party having a right of recourse against the
   obligor is discharged to the extent of the impairment. The value of an
   interest in collateral is impaired to the extent (i) the value of the
   interest is reduced to an amount less than the amount of the right of
   recourse of the party asserting discharge, or (ii) the reduction in
   value of the interest causes an increase in the amount by which the
   amount of the right of recourse exceeds the value of the interest. The
   burden of proving impairment is on the party asserting discharge.
   
   (f) If the obligation of a party is secured by an interest in
   collateral not provided by an accommodation party and a person
   entitled to enforce the instrument impairs the value of the interest
   in collateral, the obligation of any party who is jointly and
   severally liable with respect to the secured obligation is discharged
   to the extent the impairment causes the party asserting discharge to
   pay more than that party would have been obliged to pay, taking into
   account rights of contribution, if impairment had not occurred. If the
   party asserting discharge is an accommodation party not entitled to
   discharge under subsection (e) of this section, the party is deemed to
   have a right to contribution based on joint and several liability
   rather than a right to reimbursement. The burden of proving impairment
   is on the party asserting discharge.
   
   (g) Under subsection (e) or (f) of this section, impairing value of an
   interest in collateral includes (i) failure to obtain or maintain
   perfection or recordation of the interest in collateral, (ii) release
   of collateral without substitution of collateral of equal value, (iii)
   failure to perform a duty to preserve the value of collateral owed,
   under Article 9 of this title or other law, to a debtor or surety or
   other person secondarily liable, or (iv) failure to comply with
   applicable law in disposing of collateral.
   
   (h) An accommodation party is not discharged under subsection (c),
   (d), or (e) of this section unless the person entitled to enforce the
   instrument knows of the accommodation or has notice under subsection
   (c) of Section 3-419 of this title that the instrument was signed for
   accommodation.
   
   (i) A party is not discharged under this section if (i) the party
   asserting discharge consents to the event or conduct that is the basis
   of the discharge, or (ii) the instrument or a separate agreement of
   the party provides for waiver of discharge under this section either
   specifically or by general language indicating that parties waive
   defenses based on suretyship or impairment of collateral.