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2025 California Code
Commercial Code - COM
DIVISION 1 - GENERAL PROVISIONS
CHAPTER 2 - General Definitions and Principles of Interpretation
Section 1204.
Universal Citation:
CA Com Code § 1204 (2025)
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1204. Except as otherwise provided in Divisions 3, 4, 5, 6, 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 chargeback is provided for in the event of difficulties in collection;
(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.
(Amended by Stats. 2023, Ch. 210, Sec. 2. (SB 95) Effective January 1, 2024.)
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