Ala. Code § 7-1-204

Current with legislation from 2024 effective through May 17, 2024.

Section 7-1-204 - [Effective Until 7/1/2024] Value

Except as otherwise provided in Articles 3, 4, and 5, 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 charge-back 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.

Ala. Code § 7-1-204 (1975)

Prior version of this section added by Acts 1965, No. 549, p. 811; repealed by Act 2004-524, p. 1070, §§1, 3; current section added by Act 2004-524, p. 1070, §1.

This section is set out more than once due to postponed, multiple, or conflicting amendments.