47-3407. Alteration
A. " Alteration" means:
1. An unauthorized change in an instrument that purports to modify in any respect the obligation of a party; or
2. 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 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:
1. According to its original terms; or
2. In the case of an incomplete instrument altered by unauthorized completion, according to its terms as completed.
Section: Previous 47-3312 47-3401 47-3402 47-3403 47-3404 47-3405 47-3406 47-3407 47-3408 47-3409 47-3410 47-3411 47-3412 47-3413 47-3414 NextLast modified: October 13, 2016