- “Alteration” means (i) an unauthorized change in an instrument that purports to modify in any respect the obligation of a party; or (ii) an unauthorized addition of words or numbers or other change to an incomplete instrument relating to the obligation of a party.
- Except as provided in subsection (c) of this Code section, 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.
- 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 (i) according to its original terms; or (ii) in the case of an incomplete instrument altered by unauthorized completion, according to its terms as completed.
History. Code 1981, § 11-3-407 , enacted by Ga. L. 1996, p. 1306, § 3.
Cross references.
Alteration of written contracts generally, § 13-4-1 et seq.
Law reviews.
For article discussing parol evidence in the law of commercial paper, see 13 Ga. L. Rev. 53 (1978).