Ohio Code 1303.33 – Value and consideration – UCC 3-303
(A) An instrument is issued or transferred for value if any of the following apply:
Terms Used In Ohio Code 1303.33
- Contract: A legal written agreement that becomes binding when signed.
- Drawer: means a person who signs or is identified in a draft as a person ordering payment. See Ohio Code 1303.01
- Issuer: means a maker or drawer of an issued or unissued instrument. See Ohio Code 1303.01
- Lien: A claim against real or personal property in satisfaction of a debt.
- Maker: means a person who signs or is identified in a note as a person undertaking to pay. See Ohio Code 1303.01
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Party: means a party to an instrument. See Ohio Code 1303.01
- Person: includes an individual, corporation, business trust, estate, trust, partnership, and association. See Ohio Code 1.59
- Promise: means a written undertaking to pay money that is signed by the person undertaking to pay. See Ohio Code 1303.01
(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 any person, whether or not the claim is due.
(4) The instrument is issued or transferred in exchange for a negotiable instrument.
(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 division (A) of this section, the instrument is also issued for consideration.