Section 23 Apparent Forgery or Alteration

• Library: Commercial Law 2007

To qualify as a holder in due course under UCC Article 3, a holder must take an instrument that when issued or negotiated to the holder must not have such apparent evidence of forgery or alteration or otherwise be so irregular or incomplete as to call into question the instrument’s authenticity. Section 400.3-302(a), RSMo 2000. This provision is a return to the Uniform Negotiable Instruments Law of 1896 (NIL)—see §2.1, supra—rule “that the taker of an irregular or incomplete instrument is not a person the law should...