US Laws, Codes, Statutes & Cases

§ 1304.21. (UCC 4-211) When bank gives value for purposes of holder in due course.
 

For the purposes of determining its status as a holder in due course, a bank has given value to the extent it has a security interest in an item if the bank otherwise complies with the requirements of section 1303.32 of the Revised Code on what constitutes a holder in due course. 
 

HISTORY: RC § 1304.15, 129 v S 5 (Eff 7-1-62); RC § 1304.21, 145 v S 147. Eff 8-19-94.
 

Not analogous to former RC § 1304.21, amended and renumbered RC § 1304.27 in 145 v S 147, eff 8-19-94.

 

Official Comment

The section completes the thought of the previous section and makes clear that a security interest in an item is "value" for the purpose of determining the holder's status as a holder in due course. The provision is in accord with the prior law (N.I.L. section 27) and with article 3 (section 3-303).  The section does not prescribe a security interest under section 4-210 as a test of "value" generally because the meaning of "value" under other articles is adequately defined in section 1-201.