Section 45.03.407. Alteration.

   (a) Except as provided in (b) 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. Another alteration does not discharge a party, and the instrument may be enforced according to its original terms.
   (b) 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.
   (c) "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.

Authorities

45.03.103;45.03.115;45.03.418;45.04.104

Notes

References

AS 45.03.103 Definitions.
AS 45.03.115 Incomplete instrument.
AS 45.03.418 Payment or acceptance by mistake.
AS 45.04.104 Definitions and index of definitions.

History

(Sec. 3.407 ch 114 SLA 1962; am Sec. 54 ch 35 SLA 1993)