Source: L. 94: Entire article R&RE, p. 855, § 1, effective January 1, 1995.
Editor's note: This section is similar to former § 4-3-303 as it existed prior to 1994.
Case #1. X owes Y $1,000. The debt is not represented by a note. Later X issues a note to Y for the debt. Under subsection (a)(3) X's note is issued for value. Under subsection (b) the note is also issued for consideration whether or not, under contract law, Y is deemed to have given consideration for the note.
Case #2. X issues a check to Y in consideration of Y's promise to perform services in the future. Although the executory promise is consideration for issuance of the check it is value only to the extent the promise is performed. Subsection (a)(1).
Case #3. X issues a note to Y in consideration of Y's promise to perform services. If at the due date of the note Y's performance is not yet due, Y may enforce the note because it was issued for consideration. But if at the due date of the note, Y's performance is due and has not been performed, X has a defense. Subsection (b).
Structure Colorado Code
Title 4 - Uniform Commercial Code
Article 3 - Negotiable Instruments
Part 3 - Enforcement of Instruments
§ 4-3-301. Person Entitled to Enforce Instrument
§ 4-3-302. Holder in Due Course
§ 4-3-303. Value and Consideration
§ 4-3-305. Defenses and Claims in Recoupment
§ 4-3-306. Claims to an Instrument
§ 4-3-307. Notice of Breach of Fiduciary Duty
§ 4-3-308. Proof of Signatures and Status as Holder in Due Course
§ 4-3-309. Enforcement of Lost, Destroyed, or Stolen Instrument
§ 4-3-310. Effect of Instrument on Obligation for Which Taken
§ 4-3-311. Accord and Satisfaction by Use of Instrument
§ 4-3-312. Lost, Destroyed, or Stolen Cashier's Check, Teller's Check, or Certified Check