§ 26-1-3.1-407 — Alteration

Indiana § 26-1-3.1-407

• Jurisdiction: Indiana
• Title 26: COMMERCIAL LAW
• Art. 1: UNIFORM COMMERCIAL CODE
• Ch. 3.1: Negotiable Instruments

Text

(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.

Legislative History

As added by P.L.222-1993, SEC.5.