HRS 0490-0004-0211 ANNOTATIONS

Prior Uniform Statutory Provision: Negotiable Instruments Law, Section 27.

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 4-208 as a test of "value" generally because the meaning of "value" under other Articles is adequately defined in Section 1-201.

Cross References:

Sections 1-201, 3-302, 3-303 and 4-208.

Definitional Cross References:

"Bank". Section 1-201.

"Holder in due course". Section 3-302.

"Item". Section 4-104.

"Security interest". Section 1-201.