28-1-1504. When acceptance of novation may be rescinded.
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/mt/title-28/chapter-1/part-15/28-1-1504·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
28-1-1504 . When acceptance of novation may be rescinded. When the obligation of a third person or an order upon the third person is accepted in satisfaction, the creditor may rescind the acceptance if:
(1)the debtor prevents the third person from complying with the order or from fulfilling the obligation;
(2)at the time the obligation or order is received, the third person is insolvent and the fact is unknown to the creditor; or
(3)before the creditor can, with reasonable diligence, present the order to the third person upon whom it is given, the third person becomes insolvent.