§490:4-211 [OLD] REPEALED. L 1991, c 118, pt of §4.
§490:4-211 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 490:3-302 on what constitutes a holder in due course. [L 1965, c 208, §4-209; HRS §490:4-209; am and ren L 1991, c 118, pt of §4]
COMMENTS TO OFFICIAL TEXT
Prior Uniform Statutory Provision: Negotiable Instruments Law, Section 27.
Purposes:
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.