§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.