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92_SB1737 LRB9215521REpk 1 AN ACT to amend the Uniform Commercial Code. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Uniform Commercial Code is amended by 5 changing Section 3-407 as follows: 6 (810 ILCS 5/3-407) (from Ch. 26, par. 3-407) 7 Sec. 3-407. Alteration. 8 (a) "Alteration" means (i) an unauthorized change in an 9 instrument that purports to modify in any respect the 10 obligation of a party, or (ii) an unauthorized addition of 11 words or numbers or other change to an incomplete instrument 12 relating to the obligation of a party. The unauthorized 13 addition of words or numbers is not limited to changes made 14 electronically or by encoder. 15 (b) Except as provided in subsection (c), an alteration 16 fraudulently made discharges a party whose obligation is 17 affected by the alteration unless that party assents or is 18 precluded from asserting the alteration. No other alteration 19 discharges a party, and the instrument may be enforced 20 according to its original terms. 21 (c) A payor bank or drawee paying a fraudulently altered 22 instrument or a person taking it for value, in good faith and 23 without notice of the alteration, may enforce rights with 24 respect to the instrument (i) according to its original 25 terms, or (ii) in the case of an incomplete instrument 26 altered by unauthorized completion, according to its terms as 27 completed. 28 (Source: P.A. 87-582; 87-1135.)