Brill v. Brandt

The contention that plaintiffs were discharged from liability upon the note by the discharge of Brandt, despite the bank’s reservation of its rights against all other parties to the instrument, is based upon subdivision 3 of section 201 of the Negotiable Instruments Law. Under the prov.sions of a subsequent statute, however, the obligee’s release or discharge of one or more of several obligors does not discharge co-obligors against whom the obligee, in writing, as part of the same transaction as the release or discharge, expressly reserves his rights. (Debtor and Creditor Law, § 234.) All the…