As between the drawee and the collecting

bank (that is treated as a general indorser),

it is the collecting bank that should suffer
the loss in case of alteration of the amount
(1996 Bar).
Exception: If the negligence of
the drawee bank is the proximate cause of
the loss.
-Blor s 09 bsin 3)
c)
In case of alteration of the payee's name,
the drawee bank has no right to debit
the account of the drawer; the alteration
prevents recovery by the holder (1977 Bar).
Is the alteration of the serial number of a check
a material alteration?
1239677
mos son ai
noriste
PON
70 505 g 6
No. The alteration of the serial number of the
check does not alter the effect of the instrument,
nor does it modify in any respect the obligation
of a party thereto. It does not change the items
which are required to be stated under Section 1,
NIL (International Corporate Bank v. CA, September
5, 2006; 1999 Bar).
13.06. FRAUD
a)
398719328
99wsah grl
331816.on/
"Fraud in execution" (fraud in factum or fraud
in esse contractus)
present when a person is
induced to sign an instrument not knowing its
character as a note or a bill. The person who signs
the instrument does not know that he is signing
a negotiable instrument. Example: A blind person
was made to sign a piece of paper he believes
to be a credit application although it is really a
promissory note.
"Fraud in inducement' - the person who signs
the instrument intends to sign the same as a
negotiable instrument, but was induced to do
so only through fraud; his consent to issue a
negotiable instrument was vitiated by fraud.
C
Fraud in factum is a real defense, while fraud in
inducement is a personal defense (2011 Bar).