§ 25-3-303. Value and consideration. - North Carolina Statutes

§25‑3‑303.  Value and consideration.

(a)        An instrument isissued or transferred for value if:

(1)        The instrument isissued or transferred for a promise of performance, to the extent the promisehas been performed;

(2)        The transfereeacquires a security interest or other lien in the instrument other than a lienobtained by judicial proceeding;

(3)        The instrument isissued or transferred as payment of, or as security for, an antecedent claimagainst any person, whether or not the claim is due;

(4)        The instrument isissued or transferred in exchange for a negotiable instrument; or

(5)        The instrument isissued or transferred in exchange for the incurring of an irrevocableobligation to a third party by the person taking the instrument.

(b)        "Consideration"means any consideration sufficient to support a simple contract. The drawer ormaker of an instrument has a defense if the instrument is issued withoutconsideration. If an instrument is issued for a promise of performance, theissuer has a defense to the extent performance of the promise is due, and thepromise has not been performed. If an instrument is issued for value as statedin subsection (a) of this section, the instrument is also issued forconsideration. (1899, c. 733, ss. 16, 24, 25 to 27, 28, 54, 58, 59;Rev., ss. 2166, 2172, 2173 to 2175, 2176, 2203, 2207, 2208; C.S., ss. 2297,3004, 3005 to 3007, 3008, 3035, 3039, 3040; 1965, c. 700, s. 1; 1995, c. 232,s. 1.)