2006 Ohio Revised Code - 1304.21. (UCC 4-211) When bank gives value for purposes of holder in due course.
§ 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.
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