Legal Question in Business Law in Washington
What dose this mean?
Every person who becomes a party to this note waives demand, presentment for payment, protest and notice of demand, protest and nonpayment and agrees that the Lenders may without notice release collateral held for the security of any obligation evidenced hereby, grant extensions or renewals hereof, and release or otherwise discharge any part hereto.
1 Answer from Attorneys
It probably (might vary somewhat on context, background, course of dealings, industry standards etc.) means that Lender doesn't have to show the the note or tell you to pay and instead you'll pay without that presentation. It means that Lender doesn't have to deal with whatever collateral secures the note such as if the State was foreclosing on real estate that also secured the Note the Lender could "let the government have it." It also allows for the Lender to re-lend on the same terms or allow you longer to repay the debt or make other arrangements.
It might also apply to some other circumstances, but the above is what it is typically designed to address.
The clause may be becoming unnecessary, but it's work comparing it to UCC Article 3-4 to explore that possibility.
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