§ 554.3407 — Alteration

Iowa § 554.3407

• Jurisdiction: Iowa
• Title XIII: COMMERCE
• Ch. 554: UNIFORM COMMERCIAL CODE

Text

1. “Alteration” means an unauthorized change in an instrument that purports to modify
in any respect the obligation of a party, or an unauthorized addition of words or numbers or
other change to an incomplete instrument relating to the obligation of a party.
2. Except as provided in subsection 3, 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.
3. 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 according to its original terms, or in the case of an incomplete instrument
altered by unauthorized completion, according to its terms as completed.