Alteration

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47-3407. 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 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.


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