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The Vermont Statutes Online



Title

09A

:
Uniform Commercial Code






Chapter

003

:
Commercial Paper











 

§

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) of this section, the instrument is

also issued for consideration. (Added 1993, No. 158 (Adj. Sess.), § 12, eff. Jan.

1, 1995.)