Iowa Code 554.3303 – Value and consideration
Current as of: 2024 | Check for updates
|
Other versions
Terms Used In Iowa Code 554.3303
- Contract: A legal written agreement that becomes binding when signed.
- Lien: A claim against real or personal property in satisfaction of a debt.
- person: means individual, corporation, limited liability company, government or governmental subdivision or agency, business trust, estate, trust, partnership or association, or any other legal entity. See Iowa Code 4.1
554.3303 Value and consideration.
1. An instrument is issued or transferred for value if:
a. the instrument is issued or transferred for a promise of performance, to the extent the
promise has been performed;
b. the transferee acquires a security interest or other lien in the instrument other than a
lien obtained by judicial proceeding;
c. 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;
d. the instrument is issued or transferred in exchange for a negotiable instrument; or
e. 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.
2. “”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 subsection 1, the instrument is
also issued for consideration.
94 Acts, ch 1167, §38, 121, 122
Referred to in §554.3103, 554.3302, 554.5102, 554.9403, 554.14102
1. An instrument is issued or transferred for value if:
a. the instrument is issued or transferred for a promise of performance, to the extent the
promise has been performed;
b. the transferee acquires a security interest or other lien in the instrument other than a
lien obtained by judicial proceeding;
c. 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;
d. the instrument is issued or transferred in exchange for a negotiable instrument; or
e. 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.
2. “”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 subsection 1, the instrument is
also issued for consideration.
94 Acts, ch 1167, §38, 121, 122
Referred to in §554.3103, 554.3302, 554.5102, 554.9403, 554.14102