86Effect of discharge of indorser

#### 86 Effect of discharge of indorser (1) Subject to subsection (2), where an indorser is discharged under subsection 83(1) or (2), all rights on the cheque against the indorser are extinguished. (2) Where: (a) an indorser is discharged: (i) by virtue of paragraph 83(1)(a) by the renunciation of the holder’s rights against the indorser; or (ii) under subsection 83(2) by the renunciation of the holder’s rights against an indorser against whom the first‑mentioned indorser would have had a right of recourse; and (b) a person takes the cheque without notice of the renunciation; the person may enforce payment of the cheque as if the first‑mentioned indorser had not been discharged.