Colorado Code
Part 2 - Collection of Items - Depositary and Collecting Banks
§ 4-4-211. 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 4-3-302 on what constitutes a holder in due course.
Source: L. 94: Entire article amended with relocations, p. 892, § 2, effective January 1, 1995.
Editor's note: This section is similar to former § 4-4-209 as it existed prior to 1994, and the former § 4-4-211 was relocated to § 4-4-213.
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 4-210 as a test of "value" generally because the meaning of "value" under other Articles is adequately defined in Section 1-201.

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