Sec. 3.407.  ALTERATION.  (a)  "Alteration" means:
(1)  an unauthorized change in an instrument that purports to modify in any respect the obligation of a party;  or
(2)  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:
(1)  according to its original terms;  or
(2)  in the case of an incomplete instrument altered by unauthorized completion, according to its terms as completed.
Amended by Acts 1995, 74th Leg., ch. 921, Sec. 1, eff. Jan. 1, 1996.