§490:3-407 Alteration. (a) "Alteration" means (i) an unauthorized change in an instrument that purports to modify in any respect the obligation of a party, or (ii) an unauthorized addition of words or numbers or other change to an incomplete instrument relating to the obligation of a party.
(b) Except as provided in subsection (c), an alteration fraudulently made discharges a party whose obligation is affected by the alteration unless that party assents to or is precluded from asserting the alteration. No other alteration discharges a party, and the instrument may be enforced according to its original terms.
(c) A payor bank or drawee paying a fraudulently altered instrument or a person taking it for value, in good faith and without notice of the alteration, may enforce rights with respect to the instrument (i) according to its original terms, or (ii) in the case of an incomplete instrument altered by unauthorized completion, according to its terms as completed. [L 1991, c 118, pt of §1]
Section: Previous 490-3-312 490-3-401 490-3-402 490-3-403 490-3-404 490-3-405 490-3-406 490-3-407 490-3-408 490-3-409 490-3-410 490-3-411 490-3-412 490-3-413 490-3-414 NextLast modified: October 27, 2016