§ 6A-3-407 - Alteration. - Rhode Island Statutes

SECTION 6A-3-407

   § 6A-3-407  Alteration. – (a) "Alteration" means (i) an unauthorized change in an instrument thatpurports to modify in any respect the obligation of a party, or (ii) anunauthorized addition of words or numbers or other change to an incompleteinstrument relating to the obligation of a party.

   (b) Except as provided in subsection (c), an alterationfraudulently made discharges a party whose obligation is affected by thealteration unless that party assents or is precluded from asserting thealteration. No other alteration discharges a party, and the instrument may beenforced according to its original terms.

   (c) A payor bank or drawee paying a fraudulently alteredinstrument or a person taking it for value, in good faith and without notice ofthe alteration, may enforce rights with respect to the instrument (i) accordingto its original terms, or (ii) in the case of an incomplete instrument alteredby unauthorized completion, according to its terms as completed.