(a) “Alteration” means (i) an unauthorized change in an instrument that purports to modify in any respect the obligation of a party, or (ii) an unauthorized addition of words or numbers or other change to an incomplete instrument relating to the obligation of a party.
(b) Except as provided in subsection (c), 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.
(c) 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 (i) according to its original terms, or (ii) in the case of an incomplete instrument altered by unauthorized completion, according to its terms as completed.
Structure Arkansas Code
Title 4 - Business and Commercial Law
Subtitle 1 - Uniform Commercial Code
Chapter 3 - Negotiable Instruments
§ 4-3-402. Signature by representative
§ 4-3-403. Unauthorized signature
§ 4-3-404. Impostors — Fictitious payees
§ 4-3-405. Employer's responsibility for fraudulent indorsement by employee
§ 4-3-406. Negligence contributing to forged signature or alteration of instrument
§ 4-3-408. Drawee not liable on unaccepted draft
§ 4-3-409. Acceptance of draft — Certified check
§ 4-3-410. Acceptance varying draft
§ 4-3-411. Refusal to pay cashier's checks, teller's checks, and certified checks
§ 4-3-412. Obligation of issuer of note or cashier's check
§ 4-3-413. Obligation of acceptor
§ 4-3-414. Obligation of drawer
§ 4-3-415. Obligation of indorser
§ 4-3-416. Transfer warranties
§ 4-3-417. Presentment warranties
§ 4-3-418. Payment or acceptance by mistake