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S.C. Code Ann. § 36-3-303

Value and consideration

Known as the Uniform Commercial Code

The act spans §§ 36–36 (519 sections).

Applied in 1 court decision — leading case 893 F. Supp. 1304 - Midfirst Bank v. C.W. Haynes & Co. a South Carolina Corp. (1994)

Most recently applied in 893 F. Supp. 1304 - Midfirst Bank v. C.W. Haynes & Co. a South Carolina Corp. (October 1994)

1962 Code SECTION 10.3-303; 1966 (54) 2716; 2008 Act No. 204, SECTION 2, eff July 1, 2008.

(a) An instrument is issued or transferred for value if:

(1) the instrument is issued or transferred for a promise of performance, to the extent the promise has been performed;

(2) the transferee acquires a security interest or other lien in the instrument other than a lien obtained by judicial proceeding;

(3) 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;

(4) the instrument is issued or transferred in exchange for a negotiable instrument; or

(5) 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.

(b) "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 the promise has not been performed. If an instrument is issued for value as stated in Subsection (a), the instrument is also issued for consideration.

Official source: South Carolina Legislature. Reproduced from public-domain South Carolina statutes; confirm against the official source for the current text. Not legal advice.