Iowa Code 554.3303 – Value and consideration
Current as of: 2023 | Check for updates
|
Other versions
1. An instrument is issued or transferred for value if:
a. the instrument is issued or transferred for a promise of performance, to the extent 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 proceeding;
c. 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;
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.
Terms Used In Iowa Code 554.3303
- Lien: A claim against real or personal property in satisfaction of a debt.
- 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.
- person: means individual, corporation, limited liability company, government or governmental subdivision or agency, business trust, estate, trust, partnership or association, or any other legal entity. See Iowa Code 4.1
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 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 1, the instrument is also issued for consideration.