Cal. Com. Code § 1204

Current through the 2023 Legislative Session.

Section 1204 - Value

Except as otherwise provided in Divisions 3, 4, 5, 6, and 12, a person gives value for rights if the person acquires them:

(1) in return for a binding commitment to extend credit or for the extension of immediately available credit, whether or not drawn upon and whether or not a chargeback is provided for in the event of difficulties in collection;

(2) as security for, or in total or partial satisfaction of, a preexisting claim;

(3) by accepting delivery under a preexisting contract for purchase; or

(4) in return for any consideration sufficient to support a simple contract.

Ca. Com. Code § 1204

Amended by Stats 2023 ch 210 (SB 95),s 2, eff. 1/1/2024.

Added by Stats 2006 ch 254 (SB 1481),s 22, eff. 1/1/2007.