§ 26-1-3.1-303 — Value and consideration

Indiana § 26-1-3.1-303

• Jurisdiction: Indiana
• Title 26: COMMERCIAL LAW
• Art. 1: UNIFORM COMMERCIAL CODE
• Ch. 3.1: Negotiable Instruments

Text

(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), the instrument is also issued for consideration.

Legislative History

As added by P.L.222-1993, SEC.5.