Code of Alabama

Ala. Code § 7-1-204 (2026)

Value.

✓ official Alabama Legislature (ALISON) text, current July 2026

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Except as otherwise provided in Articles 3, 4, 5, and 12, a person gives value for rights if the person acquires them:

(1) In return for a binding commitment to extend credit or for the extension of immediately available credit, whether or not drawn upon and whether or not a charge-back is provided for in the event of difficulties in collection;

(2) As security for, or in total or partial satisfaction of, a preexisting claim;

(3) By accepting delivery under a preexisting contract for purchase; or

(4) In return for any consideration sufficient to support a simple contract.

(Prior version of this section added by Acts 1965, No. 549, p. 811; repealed by Act 2004-524, p. 1070, §§1, 3; current section added by Act 2004-524, p. 1070, §1; Act 2023-492, §1.)

Notes of Decisions

Cited in 1 case, 1980–1980 · leading case: Koch Supplies, Inc., a Missouri Corp. v. Farm Fresh Meats, Inc., Paul Childress, Jr. & Joy B. Childress, 630 F.2d 282 (5th Cir. 1980).

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Koch Supplies, Inc., a Missouri Corp. v. Farm Fresh Meats, Inc., Paul Childress, Jr. & Joy B. Childress, 630 F.2d 282 (5th Cir. 1980). · cites it 2× “Ala.Code § 7-1-204 (1975). Official Comment 1 to § 7-1-204 explains the purpose of the above provision.”

— Ala. Code § 7-1-204(1) — 1 case

Koch Supplies, Inc., a Missouri Corp. v. Farm Fresh Meats, Inc., Paul Childress, Jr. & Joy B. Childress, 630 F.2d 282 (5th Cir. 1980). “Ala.Code § 7-1-204 (1975). Official Comment 1 to § 7-1-204 explains the purpose of the above provision.”

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