554.3407 Alteration. 1. 'Alteration' means an unauthorized change in an instrument that purports to modify in any respect the obligation of a party, or an unauthorized addition of words or numbers orother change to an incomplete instrument relating to the obligation of a party. 2. Except as provided in subsection 3, an alteration fraudulently made discharges a party whose obligation is affected by the alteration unless that party assents or is precluded fromasserting the alteration. No other alteration discharges a party, and the instrument may beenforced 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 respectto the instrument according to its original terms, or in the case of an incomplete instrumentaltered by unauthorized completion, according to its terms as completed. 94 Acts, ch 1167, §54, 121, 122; 2013 Acts, ch 30, §261Referred to in §554.3103, 554.3115, 554.3412, 554.3413, 554.3414, 554.3415, 554.4104, 554.4207 Sat Dec 23 01:56:55 2023 Iowa Code 2024, Section 554.3407 (25, 0)
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