                                 CODE OF VIRGINIA

ALTERATION (§ 8.3A-407)

a. &#8220;Alteration&#8221; 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.

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