Code of Alabama
Ala. Code § 7-4-211 (2026)
When Bank Gives Value for Purposes of Holder in Due Course.
✓ official Alabama Legislature (ALISON) text, current July 2026
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 7-3-302 on what constitutes a holder in due course.
(Acts 1995, No. 95-668, p. 1381, §2.)
Notes of Decisions
Cited in 2
cases, 1984–1988 · leading case: Barrett v. Farmers & Merchants Bank, 451 So. 2d 257 (Ala. 1984).
Barrett v. Farmers & Merchants Bank, 451 So. 2d 257 (Ala. 1984). “Code 1975, § 7-4-211; see generally, H. Bailey, Brady on Bank Checks, § 11.”
Creech v. First Bank of Baldwin Cnty., 539 So. 2d 267 (Ala. Civ. App. 1988). “Code (1975), provides in pertinent part: “(1) Unless a contrary intent clearly appears and prior to the time that a settlement given by a collecting bank for an item is or becomes final (subsection (3) of section 7-4-211 and sections 7-4-212 and 7-4-213) the bank is an agent or…”
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