846                             LAWS OF MARYLAND                      [CH. 538

(b)  a person signing as or on behalf of a maker or drawer intends
the payee to have no interest in the instrument; or

(c)  an agent or employee of the maker or drawer has supplied
him with the name of the payee intending the latter to have no such
interest.

(2) Nothing in this section shall affect the criminal or civil liabil-
ity of the person so indorsing.

3—406. Negligence Contributing to Alteration or Unauthorized
Signature.

Any person who by his negligence substantially contributes to a
a material alteration of the instrument or to the making of an un-
authorized signature is precluded from asserting the alteration or
lack of authority against a holder in due course or against a drawee
or other payor who pays the instrument in good faith and in accord-
ance with the reasonable commercial standards of the drawee's or
payor's business.

3—407. Alteration.

(1)  Any alteration of an instrument is material 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 otherwise than as
authorized; or

(c)  the writing as signed, by adding to it or by removing any part
of it.

(2)  As against any person other than a subsequent holder in due
course

(a)  alteration by the holder which is both fraudulent and material
discharges any party whose contract is thereby changed unless that
party assents or is precluded from asserting the defense;

(b)  no other alteration discharges any party and the instrument
may be enforced according to its original tenor, or as to incomplete
instruments according to the authority given.

(3)  A subsequent holder in due course may in all cases enforce
the instrument according to its original tenor, and when an incom-
plete instrument has been completed, he may enforce it as completed.

3—408. Consideration.

Want or failure of consideration is a defense as against any person
not having the rights of a holder in due course (Section 3—305), ex-
cept that no consideration is necessary for an instrument or obliga-
tion thereon given in payment of or as security for an antecedent
obligation of any kind. Nothing in this section shall be taken to dis-
place any statute outside this Article under which a promise is en-
forceable notwithstanding lack or failure of consideration. Partial
failure of consideration is a defense pro tanto whether or not the
failure is in an ascertained or liquidated amount.