400.3-303. Value and consideration. - Missouri Statutes

Value and consideration.

400.3-303. (a) An instrument is issued or transferred forvalue if:

(1) the instrument is issued or transferred for a promiseof performance, to the extent the promise has been performed;

(2) the transferee acquires a security interest or otherlien in the instrument other than a lien obtained by judicialproceeding;

(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 fora negotiable instrument; or

(5) the instrument is issued or transferred in exchange forthe incurring of an irrevocable obligation to a third party bythe person taking the instrument.

(b) "Consideration" means any consideration sufficient tosupport a simple contract. The drawer or maker of an instrumenthas a defense if the instrument is issued without consideration.If an instrument is issued for a promise of performance, theissuer has a defense to the extent performance of the promise isdue and the promise has not been performed. If an instrument isissued for value as stated in subsection (a), the instrument isalso issued for consideration.

(L. 1963 p. 503 § 3-303, A.L. 1992 S.B. 448)