8.3A-303 - A-303. Value and consideration. - Virginia Statutes

§ 8.3A-303. Value and consideration.

(a) An instrument is issued or transferred for value if:

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

(2) the transferee acquires a security interest or other lien in theinstrument other than a lien obtained by judicial proceeding;

(3) the instrument is issued or transferred as payment of, or as securityfor, an antecedent claim against any person, whether or not the claim is due;

(4) the instrument is issued or transferred in exchange for a negotiableinstrument; or

(5) the instrument is issued or transferred in exchange for the incurring ofan irrevocable obligation to a third party by the person taking theinstrument.

(b) "Consideration" means any consideration sufficient to support a simplecontract. The drawer or maker of an instrument has a defense if theinstrument is issued without consideration. If an instrument is issued for apromise of performance, the issuer has a defense to the extent performance ofthe promise is due and the promise has not been performed. If an instrumentis issued for value as stated in subsection (a), the instrument is alsoissued for consideration.

(Code 1950, §§ 6-376, 6-377 through 6-380, 6-406, 6-410, 6-411; 1964, c. 219,§§ 8.3-303, 8.3-306, 8.3-408; 1992, c. 693.)