Holder for Value Law and Legal Definition
One who has given a legal consideration for a negotiable instrument is a holder for value. The holder of a negotiable note taken as collateral security for a preexisting debt is a holder for value in due course of business. Similarly, an endorsee of a negotiable note taken as collateral security for a preexisting debt, there being no extension of time of payment or other new consideration except such as may be deemed to arise from the acceptance of the paper, is a holder for value. [Birket v. Elward, 68 Kan. 295 (Kan. 1904)].