70A-3-407 - Alteration.
70A-3-407. Alteration.
(1) "Alteration" means an unauthorized change in an instrument that purports to modify inany respect the obligation of a party, or an unauthorized addition of words or numbers or otherchange to an incomplete instrument relating to the obligation of a party.
(2) Except as provided in Subsection (3), an alteration fraudulently made discharges aparty whose obligation is affected by the alteration unless that party assents or is precluded fromasserting the alteration. No other alteration discharges a party, and the instrument may beenforced according to its original terms.
(3) A payor bank or drawee paying a fraudulently altered instrument or a person taking itfor value, in good faith and without notice of the alteration, may enforce rights with respect to theinstrument according to its original terms, or in the case of an incomplete instrument altered byunauthorized completion, according to its terms as completed.
Repealed and Re-enacted by Chapter 237, 1993 General Session