§490:4-211  [OLD]  REPEALED.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.