U.C.C. § 3-303 (Am. L. Inst. & Unif. L. Comm'n 1990) — Value and Consideration — Reading Room

U.C.C. § 3-303 — Value and Consideration

Editorial summary. Section 3-303 defines 'value' for purposes of holder-in-due-course status and distinguishes value from consideration. Value is a Code-specific concept; a person gives value for an instrument in five enumerated circumstances (§ 3-303(a)(1)–(5)).

Citation: U.C.C. § 3-303 (Am. L. Inst. & Unif. L. Comm'n 1990)Jurisdiction: United StatesEffective: 1990-08-01

Governing Rule

Codified text.

Editorial note. A person takes for value when the agreed consideration has been performed, when a security interest or lien is acquired, when antecedent debt is discharged, when a negotiable instrument is exchanged, or when an irrevocable obligation is undertaken.

Relationship to Article 3

Codified text.

Editorial note. Value is a threshold requirement for holder-in-due-course status under § 3-302. A holder who has not given value cannot qualify.

Cross References

Codified text.

Editorial note. See U.C.C. §§ 3-302; 3-305 (defenses); 1-204 (value in general).

Revision history

1990-08-01 — Promulgated with Revised Article 3.

Canonical source: https://www.law.cornell.edu/ucc/3/3-303