41-03-44. (3-407) Alteration.
156 words·~1 min read·
/nd/title-41/chapter-41-03-negotiable-instruments/41-03-44·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
1. "Alteration" means an unauthorized change in an instrument that purports to modify in
any respect the obligation of a party to the instrument or an unauthorized addition of
words or numbers or other change to an incomplete instrument relating to the
obligation of any party to the instrument.
2. Except as provided in subsection 3, an alteration fraudulently made discharges any
party whose obligation is affected by the alteration unless that party assents or is
precluded from asserting the alteration. No other alteration discharges any party, and
the instrument may be enforced according to its original terms.
3. 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 according to its original terms or in the case of an incomplete
instrument altered by unauthorized completion, according to its terms as completed.