Utah Code 70A-3-303. Value and consideration
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(1) An instrument is issued or transferred for value if:
Terms Used In Utah Code 70A-3-303
- Contract: A legal written agreement that becomes binding when signed.
- 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 :(24)(a) an individual;(24)(b) an association;(24)(c) an institution;(24)(d) a corporation;(24)(e) a company;(24)(f) a trust;(24)(g) a limited liability company;(24)(h) a partnership;(24)(i) a political subdivision;(24)(j) a government office, department, division, bureau, or other body of government; and(24)(k) any other organization or entity. See Utah Code 68-3-12.5(1)(a) the instrument is issued or transferred for a promise of performance, to the extent the promise has been performed;(1)(b) the transferee acquires a security interest or other lien in the instrument other than a lien obtained by judicial proceeding;(1)(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;(1)(d) the instrument is issued or transferred in exchange for a negotiable instrument; or(1)(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 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.