§490:3-303 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), the instrument is also issued for consideration. [L 1991, c 118, pt of §1]
Case Notes
Where genuine issues of material fact existed as to whether plaintiff was a holder in due course, including whether plaintiff took mortgagor's note "for value" and whether plaintiff took the note "in good faith" and "without notice that the note was overdue" or that mortgagor had "a defense or claim in recoupment", trial court erred in granting plaintiff's motion for summary judgment. 99 H. 173 (App.), 53 P.3d 312.
Section: Previous 490-3-203 490-3-204 490-3-205 490-3-206 490-3-207 490-3-301 490-3-302 490-3-303 490-3-304 490-3-305 490-3-306 490-3-307 490-3-308 490-3-309 490-3-310 NextLast modified: October 27, 2016