1. An instrument is issued or transferred for value if:
a. the instrument is issued or transferred for a promise of performance, to the extent
the promise has been performed;
b. the transferee acquires a security interest or other lien in the instrument other
than a lien obtained by judicial proceeding;
c. the instrument is issued or transferred as payment of, or as security for, an antecedent
claim against any person, whether or not the claim is due;
d. the instrument is issued or transferred in exchange for a negotiable instrument;
e. the instrument is issued or transferred in exchange for the incurring of an irrevocable
obligation to a third party by the person taking the instrument.
2. “Consideration” means any consideration sufficient to support a simple contract. The drawer or maker of an instrument has a defense if the instrument is issued without
consideration. If an instrument is issued for a promise of performance, the issuer has a defense
to the extent performance of the promise is due and the promise has not been performed. If an instrument is issued for value as stated in subsection 1, the instrument is
also issued for consideration.
FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature or via Westlaw before relying on it for your legal needs.
Was this helpful?
Welcome to FindLaw's Cases & Codes
A free source of state and federal court opinions, state laws, and the United States Code. For more information about the legal concepts addressed by these cases and statutes, visit FindLaw's Learn About the Law.