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Can you summarize MNST 336.3-303?
UNIFORM COMMERCIAL CODE > VALUE AND CONSIDERATION.
Short Summary
This legal document, governed by the Minnesota Statutes under the Uniform Commercial Code, specifically addresses the concept of value and consideration in relation to instruments. An instrument is considered issued or transferred for value if certain conditions are met, such as a promise of performance being fulfilled, acquisition of a security interest or lien, payment of an antecedent claim, exchange for a negotiable instrument, or incurring an irrevocable obligation to a third party. The term ‘consideration’ is defined as any consideration sufficient to support a simple contract. The document also outlines defenses available to the drawer or maker of an instrument issued without consideration, as well as defenses available to the issuer if performance of a promise is due but not yet performed. It is important to note that this document has been repealed in 1992 and is no longer in effect.
Whom does it apply to?
Issuers, transferees, and persons involved in the issuance or transfer of instruments
What does it govern?
VALUE AND CONSIDERATION
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Minnesota