Completion or alteration of security certificate

84-8-206. Completion or alteration of security certificate. (a) If a security certificate contains the signatures necessary to its issue or transfer but is incomplete in any other respect: (1) Any person may complete it by filling in the blanks as authorized; and (2) even if the blanks are incorrectly filled in, the security certificate as completed is enforceable by a purchaser who took it for value and without notice of the incorrectness. (b) A complete security certificate that has been improperly altered, even if fraudulently, remains enforceable, but only according to its original terms. History: L. 1996, ch. 202, § 49; July 1. KANSAS COMMENT, 1996 This section is derived from the former 84-8-206, which has been modified to refer to security "certificates." The other changes are minor and stylistic. The section is identical to the Official Text. Subsection (a) deals with incomplete security certificates, and subsection (b) deals with altered security certificates. Under paragraph (a)(1), an incomplete security may be completed as authorized, and the completed security is valid and may be enforced. Under paragraph (a)(2), a purchaser for value without notice may enforce the security as completed even though it is incorrectly completed. This rule is in accord with former K.S.A. 52-214. Under former K.S.A. 52-215, an incomplete instrument which had not been delivered was not valid in the hands of any holder. Subsection (a) of this section changes the former rule. This section corresponds with similar changes in 84-3-115 and 84-3-407. Under subsection (b), an improperly altered security is enforceable only according to its original terms. This provision makes no distinction between fraudulent and non-fraudulent alterations. Compare 84-3-407, which discharges any party whose contract is changed by a holder's material and fraudulent alteration as against any person other than a holder in due course. The rule of this subsection is in accord with former K.S.A. 17-4815. Revisor's Note: Former section 84-8-206 was repealed by L. 1996, ch. 202, § 91 and the number reassigned to the current text.