Beneficial Finance Co. v. Husner

The holder of a note discharges from *551liability an indorser of the note to the extent that the holder releases collateral given by the maker. Under the Uniform Commercial Code not only is an indorser discharged to the extent of the release of the collateral, but also discharged is any party who, to the knowledge of the holder, has a right of recourse against the maker (Uniform Commercial Code, §3-606). The official comment to section 3-606 of the Uniform Commercial Code explains: "The suretyship defenses here provided are not limited to parties who are 'secondarily liable’, but are available…