§ 3407 Fraudulent Instrument Alterations

Commercial Code·California

AI SummaryVerified

Key Takeaways

•If someone changes a check or document without permission, it’s called an 'alteration'.
•If the change is done to trick someone, the person who was supposed to pay might not have to pay anymore.
•If a bank or someone else pays the changed check without knowing it was changed, they can still get their money back.

Example

You write a check for $50 to your friend for a video game. Your friend changes the amount to $500 without telling you and tries to cash it.

Since your friend changed the check to trick you, you don’t have to pay the $500. But if the bank pays the $500 without knowing it was changed, they can still ask you for the original $50.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source

View on CA.gov

§ 3407 Fraudulent Instrument Alterations

(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 subdivision (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. (Repealed and added by Stats. 1992, Ch. 914, Sec. 6. Effective January 1, 1993.)

Last verified: January 23, 2026

Key Terms

alteration fraudulently made unauthorized change incomplete instrument original terms

References

Official text at leginfo.legislature.ca.gov
California Legislature. Commercial Code. Section 3407.

§ 3407 Fraudulent Instrument Alterations

Commercial Code·California

AI SummaryVerified

§ 3407 Fraudulent Instrument Alterations

Key Takeaways

•If someone changes a check or document without permission, it’s called an 'alteration'.
•If the change is done to trick someone, the person who was supposed to pay might not have to pay anymore.
•If a bank or someone else pays the changed check without knowing it was changed, they can still get their money back.

Example

You write a check for $50 to your friend for a video game. Your friend changes the amount to $500 without telling you and tries to cash it.

Since your friend changed the check to trick you, you don’t have to pay the $500. But if the bank pays the $500 without knowing it was changed, they can still ask you for the original $50.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source

View on CA.gov

§ 3407 Fraudulent Instrument Alterations

Last verified: January 23, 2026

Key Terms

alteration fraudulently made unauthorized change incomplete instrument original terms

References

Official text at leginfo.legislature.ca.gov
California Legislature. Commercial Code. Section 3407.

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References