NC S807

Amends G.S. 25-3-311 to clarify when a claim is discharged by tendering a negotiable instrument as full payment of a disputed or unliquidated debt.

A claim is discharged if the instrument or accompanying communication contains a conspicuous statement that it is tendered as full satisfaction, and the claimant obtains payment.

An organization can prevent discharge by sending a conspicuous statement directing disputed debt communications to a designated person, office, or place before the tender is made.

Alternatively, any claimant can preserve the claim by repaying the instrument amount within 90 days after payment, except for organizations that complied with the designation requirement.

Effective October 1, 2016, applying to negotiable instruments tendered as full satisfaction on or after that date.