355.3 -303 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 oth er 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 th e promise has not been performed. If an instrument is issued for value as stated in subsection (1) of this section, the instrument is a defense to the extent performance of the promise is due and th e promise has not been performed. If an instrument is issued for value as stated in subsection (1) of this section, the instrument is also issued for consideration. Effective: January 1, 1997 History: Repealed and reenacted 1996 Ky. Acts ch. 130, sec. 29, effective January 1, 1997. -- Created 1958 Ky. Acts ch. 77, sec. 3 -303, effective July 1, 1960.
Kentucky Legal Code