§ 6A-3-303 - Value and consideration.
SECTION 6A-3-303
§ 6A-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 ofperformance, to the extent the promise has been performed;
(2) The transferee acquires a security interest or other lienin the instrument other than a lien obtained by judicial proceeding;
(3) The instrument is issued or transferred as payment of, oras security for, an antecedent claim against any person, whether or not theclaim is due;
(4) The instrument is issued or transferred in exchange for anegotiable instrument; or
(5) The instrument is issued or transferred in exchange forthe incurring of an irrevocable obligation to a third party by the persontaking the instrument.
(b) "Consideration" means any consideration sufficient tosupport a simple contract. The drawer or maker of an instrument has a defenseif the instrument is issued without consideration. If an instrument is issuedfor a promise of performance, the issuer has a defense to the extentperformance of the promise is due and the promise has not been performed. If aninstrument is issued for value as stated in subsection (a), the instrument isalso issued for consideration.