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California Commercial Code Section 1204

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Except as otherwise provided in Divisions 3, 4, 5, and 6, a
person gives value for rights if the person acquires them:
   (1) in return for a binding commitment to extend credit or for the
extension of immediately available credit, whether or not drawn upon
and whether or not a chargeback is provided for in the event of
difficulties in collection;
   (2) as security for, or in total or partial satisfaction of, a
preexisting claim;
   (3) by accepting delivery under a preexisting contract for
purchase; or
   (4) in return for any consideration sufficient to support a simple
contract.
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Last modified: July 31, 2008