Instrument Issued for Value Law and Legal Definition
Pursuant to U.C.C. § 3-303, an instrument is issued or transferred for value when:
the instrument is issued or transferred for a promise of performance, to the extent the promise has been performed;
the transferee acquires a security interest or other lien in the instrument other than a lien obtained by judicial proceeding;
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;
the instrument is issued or transferred in exchange for a negotiable instrument; or
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.
Instrument means a negotiable instrument.
