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Can you summarize IACO 554.3407?
UNIFORM COMMERCIAL CODE > Alteration.
Short Summary
This legal document, part of the Iowa Code’s Uniform Commercial Code, defines and regulates the concept of ‘alteration’ in commercial transactions. An alteration refers to any unauthorized change in an instrument that modifies the obligation of a party or adds unauthorized words, numbers, or changes to an incomplete instrument. The document states that a fraudulently made alteration discharges a party whose obligation is affected, unless that party assents or is precluded from asserting the alteration. However, other alterations do not discharge a party, and the instrument can be enforced according to its original terms. The document also provides exceptions for payor banks, drawees, or persons taking a fraudulently altered instrument for value, in good faith and without notice of the alteration. They may enforce rights according to the instrument’s original terms or, in the case of an incomplete instrument altered by unauthorized completion, according to its terms as completed. The document references other sections of the Iowa Code that further elaborate on alteration in commercial transactions.
Whom does it apply to?
Parties involved in commercial transactions
What does it govern?
Alteration of instruments in commercial transactions
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No specific penalties are mentioned.
Jurisdiction
Iowa