8.3A-407 - A-407. Alteration. - Virginia Statutes

§ 8.3A-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 alteration fraudulently madedischarges a party whose obligation is affected by the alteration unless thatparty assents or is precluded from asserting the alteration. No otheralteration discharges a party, and the instrument may be enforced accordingto its original terms.

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

(Code 1950, §§ 6-366, 6-367, 6-477, 6-478; 1964, c. 219, § 8.3-407; 1992, c.693.)