How can a Holder discharge the obligation and what is the effect?
Holder can discharge (cancel, destroy) obligation by writing “void.”
Effect if Payment by Certified Check, Cashier’s Check, or Teller’s Check – underlying obligation discharged as if person paid in cash
Effect if Uncertified Checks & Notes – underlying obligation is discharged. If check or note later paid, underlying obligation is discharged. If check or note dishonored, holder may sue on either instrument or underlying obligation.