Commercial Paper question

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Commercial Paper question

Postby Itwasascam » Fri Jul 06, 2018 12:31 am

Question about alterations and incomplete instruments

From my Themis outline

The legal effect of an unauthorized alteration is that the obligor is discharged on the instrument

A payor bank/holder in due course may enforce rights with respect to the instrument according to its original terms before the alteration

Question: so the obligor is still on the hook for the original amount and only discharged with respect to the alteration?

In terms of an unauthorized completion: the obligor is discharged on the instrument but a payor bank/HDC can enforce the instrument as completed

Question: against who? The obligor?

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