§3-1407. Alteration
(1).
"Alteration" means:
(a).
An unauthorized change in an instrument that purports to modify in any respect the obligation of a party; or
[PL 1993, c. 293, Pt. A, §2 (NEW).]
(b).
An unauthorized addition of words or numbers or other change to an incomplete instrument related to the obligation of a party.
[PL 1993, c. 293, Pt. A, §2 (NEW).]
[PL 1993, c. 293, Pt. A, §2 (NEW).]
(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.
[PL 1993, c. 293, Pt. A, §2 (NEW).]
(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:
(a).
According to its original terms; or
[PL 1993, c. 293, Pt. A, §2 (NEW).]
(b).
In the case of an incomplete instrument altered by unauthorized completion, according to its terms as completed.
[PL 1993, c. 293, Pt. A, §2 (NEW).]
[PL 1993, c. 293, Pt. A, §2 (NEW).]
SECTION HISTORY
PL 1993, c. 293, §A2 (NEW).