Philippine National Bank v. Court of Appeals [G.R. No. 107508. April 25, 1996]

30 Jul


Petitioner returned the check to PBCom and debited PBCom’s account for the amount covered by the check, the reason being that there was a “material alteration” of the check number.



Whether or not there is “material alteration” on the check.



NO. An alteration is said to be material if it alters the effect of the instrument.  It means an unauthorized change in an instrument that purports to modify in any respect the obligation of a party or an unauthorized addition of words or numbers or other change to an incomplete instrument relating to the obligation of a party. Here, the alteration of check number does not affect its negotiability contemplated in Section 1 of the Negotiable Instruments Law.



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