Except as otherwise provided in chapters 3, 4, and 5 of this title, a person gives value for rights if the person acquires them:

(1) In return for a binding commitment to extend credit or for the extension of immediately available credit, whether or not drawn upon and whether or not a charge-back is provided for in the event of difficulties in collection;

Terms Used In Tennessee Code 47-1-204

  • Contract: A legal written agreement that becomes binding when signed.
  • Person: includes a corporation, firm, company or association. See Tennessee Code 1-3-105
(2) As security for, or in total or partial satisfaction of, a preexisting claim;
(3) By accepting delivery under a preexisting contract for purchase; or
(4) In return for any consideration sufficient to support a simple contract.
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