Section 45.03.303. 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, to the extent the promise has been performed;
        (2) the transferee acquires a security interest or other lien in the instrument other than a lien obtained by judicial proceeding;
        (3) the instrument is issued or transferred as payment of, or as security for, an antecedent claim against a person, whether or not the claim is due;
        (4) the instrument is issued or transferred in exchange for a negotiable instrument; or
        (5) 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.
   (b) "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 (a) of this section, the instrument is also issued for consideration.

Authorities

45.03.103;45.03.302;45.05.102;45.29.403

Notes

References

AS 45.03.103 Definitions.
AS 45.03.302 Holder in due course.
AS 45.05.102 Definitions.
AS 45.29.403 Agreement not to assert defenses against assignee.

History

(Sec. 3.303 ch 114 SLA 1962; am Sec. 42 ch 35 SLA 1993)