Code of Alabama

Ala. Code § 7-3-407 (2026)

Alteration.

✓ official Alabama Legislature (ALISON) text, current July 2026

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(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.

(Acts 1965, No. 549, p. 811; repealed by Acts 1995, No. 95-668, p. 1381, §1; added by Acts 1995, No. 95-668, p. 1381, §1.)

Notes of Decisions

Cited in 1 case, 1986–1986 · leading case: Amsouth Bank, N.A. v. Spigener, 505 So. 2d 1030 (Ala. 1986).

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Amsouth Bank, N.A. v. Spigener, 505 So. 2d 1030 (Ala. 1986). · cites it 2× “"(2) If the completion is unauthorized the rules as to material alteration apply (section 7-3-407)...." Section 7-3-407 defines any alteration of an instrument as material that "changes the contract of any party thereto in any respect, including any such change in .”

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