§ 4-3-303 — Value and consideration

(a) An instrument is issued or
transferred for value if:

(1) The instrument is issued or transferred for a promise of performance, to
the extent the promise has been performed;

(2) The transferee acquires a security interest or other lien in the instrument
other than a lien obtained by judicial proceeding;

(3) 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;

(4) The instrument is issued or transferred in exchange for a negotiable
instrument; or

(5) 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.

(b) 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 (a) of this section, the instrument is also issued for
consideration.

Legislative History

Source: L. 94: Entire article R&RE, p. 855, � 1, effective January 1, 1995.