When bank gives value for purposes of holder in due course.
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.
Source:Laws 1963, c. 544, Art. IV, § 4-211, p. 1822; Laws 1991, LB 161, § 93.
The section completes the thought of the previous section and makes clear that a security interest in an item is "value" for the purpose of determining the holder's status as a holder in due course. The provision is in accord with the prior law (N.I.L. section 27) and with article 3 (section 3-303). The section does not prescribe a security interest under section 4-210 as a test of "value" generally because the meaning of "value" under other articles is adequately defined in section 1-201.