§ 4-3-407 — 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) of this section, 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 (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.

Legislative History

Source: L. 94: Entire article R&RE, p. 865, � 1, effective January 1, 1995.