Repossessions: 12.9.3.2.1 Extension of due date
If the creditor extends the due date for an instrument, the 1990 version of Article 3 provides that an accommodation party is discharged to the extent that the extension causes loss to that party with respect to the right of recourse against the principal obligor.570 For example, imagine that a creditor gives the principal obligor an extension of time, and during that extension the principal obligor dies, becomes insolvent, or absconds, and the accommodation party is forced to pay the debt.