Kentucky Statutes 355.3-407 – Alteration
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(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: January 1, 1997
History: Repealed and reenacted 1996 Ky. Acts ch. 130, sec. 45, effective January 1,
1997. — Created 1958 Ky. Acts ch. 77, sec. 3-407, effective July 1, 1960.
(a) An unauthorized change in an instrument that purports to modify in any respect the obligation of a party; or
Terms Used In Kentucky Statutes 355.3-407
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
(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: January 1, 1997
History: Repealed and reenacted 1996 Ky. Acts ch. 130, sec. 45, effective January 1,
1997. — Created 1958 Ky. Acts ch. 77, sec. 3-407, effective July 1, 1960.