§ 25-3-407. Alteration.
§25‑3‑407. Alteration.
(a) "Alteration"means (i) an unauthorized change in an instrument that purports to modify inany respect the obligation of a party, or (ii) an unauthorized addition ofwords or numbers or other change to an incomplete instrument relating to theobligation of a party.
(b) Except as providedin subsection (c) of this section, an alteration fraudulently made discharges aparty whose obligation is affected by the alteration unless that party assentsor is precluded from asserting the alteration. No other alteration discharges aparty, and the instrument may be enforced according to its original terms.
(c) A payor bank ordrawee paying a fraudulently altered instrument or a person taking it forvalue, in good faith and without notice of the alteration, may enforce rightswith respect to the instrument (i) according to its original terms, or (ii) inthe case of an incomplete instrument altered by unauthorized completion,according to its terms as completed. (1899, c. 733, ss. 14, 15,124, 125; Rev., ss. 2164, 2165, 2274, 2275; C.S., ss. 2995, 2996, 3106, 3107;1965, c. 700, s. 1; 1995, c. 232, s. 1.)