Except as otherwise provided in Articles 3, 4, 5, and 12, a person gives value for rights if the person acquires them:

(1) In return for a binding commitment to extend credit or for the extension of immediately available credit, whether or not drawn upon and whether or not a charge-back is provided for in the event of difficulties in collection;
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Terms Used In Alabama Code 7-1-204 v2

  • Contract: A legal written agreement that becomes binding when signed.
  • person: includes a corporation as well as a natural person. See Alabama Code 1-1-1
(2) As security for, or in total or partial satisfaction of, a preexisting claim;
(3) By accepting delivery under a preexisting contract for purchase; or
(4) In return for any consideration sufficient to support a simple contract.
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