Ch. 91                                     1996 LAWS OF MARYLAND

ASSERTING THE ALTERATION OR THE FORGERY AGAINST A PERSON WHO, IN GOOD
FAITH, PAYS THE INSTRUMENT OR TAKES IT FOR VALUE OR FOR COLLECTION.

(B)     UNDER SUBSECTION (A), IF THE PERSON ASSERTING THE PRECLUSION
FAILS TO EXERCISE ORDINARY CARE IN PAYING OR TAKING THE INSTRUMENT AND
THAT FAILURE SUBSTANTIALLY CONTRIBUTES TO LOSS, THE LOSS IS ALLOCATED
BETWEEN THE PERSON PRECLUDED AND THE PERSON ASSERTING THE PRECLUSION
ACCORDING TO THE EXTENT TO WHICH THE FAILURE OF EACH TO EXERCISE
ORDINARY CARE CONTRIBUTED TO THE LOSS.

(C)     UNDER SUBSECTION (A), THE BURDEN OF PROVING FAILURE TO
EXERCISE ORDINARY CARE IS ON THE PERSON ASSERTING THE PRECLUSION.
UNDER SUBSECTION (B), THE BURDEN OF PROVING FAILURE TO EXERCISE
ORDINARY CARE IS ON THE PERSON PRECLUDED.

3-407.

(A)    "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.

(B)     EXCEPT AS PROVIDED IN SUBSECTION (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 (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.

3-408.

A CHECK OR OTHER DRAFT DOES NOT OF ITSELF OPERATE AS AN ASSIGNMENT
OF FUNDS IN THE HANDS OF THE DRAWEE AVAILABLE FOR ITS PAYMENT, AND THE
DRAWEE IS NOT LIABLE ON THE INSTRUMENT UNTIL THE DRAWEE ACCEPTS IT.

3-409.

(A) "ACCEPTANCE" MEANS THE DRAWEE'S SIGNED AGREEMENT TO PAY A
DRAFT AS PRESENTED. IT MUST BE WRITTEN ON THE DRAFT AND MAY CONSIST OF
THE DRAWEE'S SIGNATURE ALONE. ACCEPTANCE MAY BE MADE AT ANY TIME AND
BECOMES EFFECTIVE WHEN NOTIFICATION PURSUANT TO INSTRUCTIONS IS GIVEN
OR THE ACCEPTED DRAFT IS DELIVERED FOR THE PURPOSE OF GIVING RIGHTS ON
THE ACCEPTANCE TO ANY PERSON.

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