Nebraska Uniform Commercial Code 3-303
- Uniform Commercial Code
- 3-303
3-303.
Value and consideration.
(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.
Source
Annotations
Under former section 3-408, a negotiable instrument requires consideration the same as any other contract. A valid note may be given as security for a debt already owed by the party giving it, or by a third party. Buffalo County v. Richards, 212 Neb. 826, 326 N.W.2d 179 (1982).
Under former law, trial court correctly refused to give instruction defining value as definition appears in this section in prosecution under section 28-611(1). State v. Spaulding, 211 Neb. 575, 319 N.W.2d 449 (1982).
Under former section 3-408, no consideration is necessary for an instrument given as security for a debt already owed by the party giving it or by a third person. Newman Grove Creamery Co. v. Deaver, 208 Neb. 178, 302 N.W.2d 697 (1981).
Under former section 3-408, no consideration is necessary for an instrument given as security for a debt already owed by the party giving it or by a third party. First Nat. Bank of Omaha v. Kizzier, 202 Neb. 369, 275 N.W.2d 600 (1979).