Business Bank v. Plank

MEMORANDUM OPINION

ELLIS, District Judge.

Among the host of issues raised in this diversity land development dispute is a uniform commercial code question addressed, but not explained, in Virginia. The question involves the application of Virginia Code § 8.3-407(2)(a) (1964). That Section, inter alia, provides that a maker of a note is discharged from his obligation where there is an alteration of the note “by the holder which is both fraudulent and material...” Id. The question presented is whether the fraud required must be actual rather than merely constructive. This question arose in the…