§ 3407 — Alteration

Pennsylvania § 3407

• Jurisdiction: Pennsylvania
• Title 13: COMMERCIAL CODE
• Ch. 34: LIABILITY OF PARTIES

Text

(a) Definition of "alteration".--"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) Fraudulent alteration; discharge.--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) Certain persons not affected by discharge.--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.

Legislative History

Cross References.Section 3407 is referred to in sections 3103, 3115, 3412, 3413, 3414, 3415, 4104, 4207 of this title.