Texas Business & Commerce Code
§ 3.407 — ALTERATION
BC § 3.407Title 1. UNIFORM COMMERCIAL CODE · Ch. 3. NEGOTIABLE INSTRUMENTS · Art. D. LIABILITY OF PARTIES
Statute text
View on source(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
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Legislative history
Amended by Acts 1995, 74th Leg., ch. 921, Sec. 1, eff. Jan. 1, 1996.