Negotiable Instruments

ORS 73.0407
Alteration

(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 or for collection, 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. [1993 c.545 §48]
Source

Last accessed
Mar. 11, 2023

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