Texas Statutes

§ 3.407 — ALTERATION.

Texas § 3.407
JurisdictionTexas
Code BCBusiness & Commerce Code

This text of Texas § 3.407 (ALTERATION.) is published on Counsel Stack Legal Research, covering Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tex. Business & Commerce Code Code Ann. § 3.407 (2026).

Text

Sec. 3.407. 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 t

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Related

Ray v. Farmers' State Bank of Hart
576 S.W.2d 607 (Texas Supreme Court, 1979)
204 case citations
First State Bank v. Keilman
851 S.W.2d 914 (Court of Appeals of Texas, 1993)
172 case citations
Coker v. Cramer Financial Group, Inc.
992 S.W.2d 586 (Court of Appeals of Texas, 1999)
19 case citations
Charter Bank Northwest v. Evanston Insurance Company
791 F.2d 379 (Fifth Circuit, 1986)
16 case citations
Jelinis, LLC v. S. Bruce Hiran and Hung N. Yi
557 S.W.3d 159 (Court of Appeals of Texas, 2018)
11 case citations
Antrim v. McMurrey
549 S.W.2d 463 (Court of Appeals of Texas, 1977)
8 case citations
Carnival Leisure Industries, Ltd. v. Aubin
830 F. Supp. 371 (S.D. Texas, 1993)
4 case citations
First State Bank v. Tom Keilman and Myrna Keilman
(Court of Appeals of Texas, 1993)
Gregory Scott Cunningham v. Bobby Anglin
(Court of Appeals of Texas, 2015)

Legislative History

Amended by Acts 1995, 74th Leg., ch. 921, Sec. 1, eff. Jan. 1, 1996.

Nearby Sections

15
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Bluebook (online)
Texas § 3.407, Counsel Stack Legal Research, https://law.counselstack.com/statute/tx/FA/3.407.