Michigan Compiled Laws

Mich. Comp. Laws § 440.3407 (2026)

Alteration; definition; discharge of party affected; enforcement of rights.

✓ current as of July 2026

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UNIFORM COMMERCIAL CODE

Act 174 of 1962

440.3407 Alteration; definition; discharge of party affected; enforcement of rights.

Sec. 3407.

(1) "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.

(2) Except as provided in subsection (3), 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, 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: 1962, Act 174, Eff. Jan. 1, 1964 ;-- Am. 1993, Act 130, Eff. Sept. 30, 1993

Notes of Decisions

Cited in 4 cases, 1980–2012 · leading case: In Re Chiodo Est., 333 N.W.2d 241 (Mich. Ct. App. 1983).

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In Re Chiodo Est., 333 N.W.2d 241 (Mich. Ct. App. 1983). · cites it 3× “Second, MCL 440.3407; MSA 19.3407 refers to material changes which affect "the contract of any party thereto”.”

Liberty State Bank & Trust v. Hemisphere Dev. Grp., Inc, 296 N.W.2d 241 (Mich. Ct. App. 1980). “Under MCL 440.3407; MSA 19.3407: "(1) Any alteration of an instrument is material *289 which changes the contract of any party thereto in any respect, including any such change in "(a) the number or relations of the parties; or "(b) an incomplete instrument, by completing it…”

Nat'l City Bank v. Syatt Realty Grp., Inc., 497 F. App'x 465 (6th Cir. 2012). “Mich. Comp. Laws § 440.3407 (2). NCB admits that the Settlement Statement was altered to reflect the allocation of the proceeds from the loan, but that alteration does not provide Wright a defense to enforcement of the Note.”

Carson Fischer Plc v. Michigan Nat'l Bank (Mich. 2005). “4406 and MCL 440.3407 and (2) if the checks did not contain an “alteration,” whether they were therefore properly payable under MCL 440.”

— Mich. Comp. Laws § 440.3407(3) — 1 case

In Re Chiodo Est., 333 N.W.2d 241 (Mich. Ct. App. 1983). “Second, MCL 440.3407; MSA 19.3407 refers to material changes which affect "the contract of any party thereto”.”

Annotations are extracted automatically from the opinions in the Syfert caselaw corpus and ranked by authority, recency, and treatment. Dots show Syfertize treatment of the citing case itself.