83When indorser discharged

83 When indorser discharged

(1) An indorser of a cheque is discharged if: (a) subject to section 84, the holder, at any time, absolutely and unconditionally renounces the holder’s rights against the indorser; or (b) subject to subsection 85(1), the holder intentionally cancels the indorser’s signature and the cancellation is apparent from the cheque. (2) Where an indorser is discharged by virtue of paragraph (1)(a) or (b), any indorser who would have had a right of recourse against the first‑mentioned indorser is also discharged. (3) Nothing in this section affects the discharge of an indorser otherwise than in accordance with this section.