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 3.302 on what constitutes a holder in due course.
Tex. Bus. & Com. Code § 4.211
WHEN BANK GIVES VALUE FOR PURPOSES OF HOLDER IN DUE COURSE
Known as the Uniform Commercial Code
The act spans §§ 1–12 (616 sections).
Acts 1967, 60th Leg., p. 2343, ch. 785, Sec. 1, eff
Official source: Texas Constitution and Statutes. Reproduced from public-domain Texas statutes; confirm against the official source for the current text. Not legal advice.