Montana Code 30-3-303. Value and consideration
30-3-303. Value and consideration. (1) An instrument is issued or transferred for value if:
Terms Used In Montana Code 30-3-303
- Contract: A legal written agreement that becomes binding when signed.
- Drawer: means a person that signs a draft as a person ordering payment. See Montana Code 30-3-102
- Lien: A claim against real or personal property in satisfaction of a debt.
- Maker: means a person that signs a note as promisor of payment. See Montana Code 30-3-102
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Party: means party to an instrument. See Montana Code 30-3-102
- Person: includes a corporation or other entity as well as a natural person. See Montana Code 1-1-201
- Promise: means a written undertaking to pay money signed by the person undertaking to pay. See Montana Code 30-3-102
(a)the instrument is issued or transferred for a promise of performance, to the extent that the promise has been performed;
(b)the transferee acquires a security interest or other lien in the instrument other than a lien obtained by judicial proceedings;
(c)the instrument is issued or transferred as payment of, or as security for, an existing obligation of any person, whether or not the obligation is due;
(d)the instrument is issued or transferred in exchange for a negotiable instrument; or
(e)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.
(2)”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 drawer or maker 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 (1), the instrument is also issued for consideration.