How may a negotiable instrument be discharged?

A negotiable instrument may be discharged in the following ways:

  1. By Payment. When payment is made at or after the maturity of the instrument to the holder by the drawee or acceptor, all parties to the instrument are discharged.
  2.  By Waiver. When the holder at or after maturity renounces his rights against the acceptor, however, such renunciation to be effective must be in writing unless the holder delivers the bill to the acceptor.
  3. By Cancellation. Where the holder of an instrument intentionally cancels the name of any party to it, such a party is discharged from his liability on the bill.
  4. By Material Alteration. Where the bill is materially altered without the consent of all the parties liable.
  5.  By Merger. When the acceptor of the instrument (bill) becomes holder of it at or after maturity in his own right.
  6. By Limitation Period. Where a holder of a bill fails to present the bill to the acceptor within six years of its maturity.
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