Section 355.3-407 - Alteration(1) "Alteration" means: (a) An unauthorized change in an instrument that purports to modify in any respect the obligation of a party; or(b) An unauthorized addition of words or numbers or other change to an incomplete instrument relating to the obligation of a party.(2) Except as provided in subsection (3) of this 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.(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:(a) According to its original terms; or(b) In the case of an incomplete instrument altered by unauthorized completion, according to its terms as completed.Effective:1/1/1997
Repealed and reenacted 1996, Ky. Acts ch. 130, sec. 45, effective1/1/1997. -- Created 1958 Ky. Acts ch. 77, sec. 3-407, effective 7/1/1960.