47-3407. Alteration
154 words·~1 min read·
/az/title-47/47-3407A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
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.