For 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 3302 on what constitutes a holder in due course.
Cal. Com. Code § 4211
Collection of Items: Depositary and Collecting Banks
Known as the Uniform Commercial Code
The act spans §§ 1101–12107 (623 sections).
Added by renumbering Section 4209 by Stats. 1992, Ch. 914, Sec. 30
Official source: California Legislative Information. Reproduced from public-domain California statutes; confirm against the official source for the current text. Not legal advice.