Mich. Comp. Laws » Michigan Compiled Laws / Chapter 440 / Act 174 of 1962
Michigan Compiled Laws

Mich. Comp. Laws § 440.3303 (2026)

Instrument issued or transferred for value; consideration.

✓ current as of July 2026
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UNIFORM COMMERCIAL CODE


Act 174 of 1962


440.3303 Instrument issued or transferred for value; consideration.

Sec. 3303.

    (1)  An instrument is issued or transferred for value if any of the following apply:

    (a) The instrument is issued or transferred for a promise of performance, to the extent the promise has been performed.

    (b) The transferee acquires a security interest or other lien in the instrument other than a lien obtained by judicial proceeding.

    (c) The instrument is issued or transferred as payment of, or as security for, an antecedent claim against any person, whether or not the claim is due.

    (d) The instrument is issued or transferred in exchange for a negotiable instrument.

    (e) The instrument is issued or transferred in exchange for the incurring of an irrevocable obligation to a third party by the person taking the instrument.

    (2) "Consideration" means any consideration sufficient to support a simple contract. The drawer or maker of an instrument has a defense if the instrument is issued without consideration. If an instrument is issued for a promise of performance, the issuer has a defense to the extent performance of the promise is due and the promise has not been performed. If an instrument is issued for value as stated in subsection (1), the instrument is also issued for consideration.

History: 1962, Act 174, Eff. Jan. 1, 1964 ;-- Am. 1993, Act 130, Eff. Sept. 30, 1993

Notes of Decisions
Cited in 9 cases, 1986–2018 · leading case: Conagra, Inc v. Farmers State Bank, 602 N.W.2d 390 (Mich. Ct. App. 1999).
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Conagra, Inc v. Farmers State Bank, 602 N.W.2d 390 (Mich. Ct. App. 1999). · cites it 2× “Under the definition of value in MCL 440.3303; MSA 19.3303, it seems clear that Farmers gave value for the government checks, because the Brennans granted rights in the disaster money checks as payment of their debt to Farmers.”
Dugan v. Vlcko, 307 F. Supp. 3d 684 (E.D. Mich. 2018). · cites it 3× “Whether a negotiable instrument has been transferred for value and consideration is determined under MCL 440.3303, *691 which states that "a negotiable instrument is issued or transferred for value if is issued of transferred as payment of, or as security for an antecedent claim…”
Rieth-Riley Constr. Co. v. First Sec. Bank (In Re Williams Bros. Asphalt Paving Co.), 59 B.R. 71 (Bankr. W.D. Mich. 1986). · cites it 2× “Mich.Comp.Laws § 440.3303 (1961) (Mich. Stat.”
Grand Rapids Auto Sales, Inc. v. MBNA Am. Bank, 227 F. Supp. 2d 721 (W.D. Mich. 2002). “§ 440.3303(l)(c). Here, the checks were issued to MBNA as payment for the antecedent debt of Stewart’s husband.”
Barbour v. Handlos Real Est. & Bldg. Corp., 393 N.W.2d 581 (Mich. Ct. App. 1986). “It has particular application to the purchase by one bank of a substantial part of the paper held by another bank which is threatened with insolvency and seeking to liquidate its assets. Plaintiff also claims that the Handloses did not take "for value” because they did not part…”
Uni-Prods., Inc. v. Bearse (In Re Uni-Prods., Inc.), 153 B.R. 764 (Bankr. E.D. Mich. 1993). · cites it 2× “Cf Mich.Comp.Laws § 440.3303(c) (a holder who takes an instrument in exchange for a negotiable instrument is deemed to have given value for the instrument).”
Frank v. McLain (In Re Peet Packing Co.), 233 B.R. 387 (Bankr. E.D. Mich. 1999). · cites it 2× “Mich.Comp.Laws § 440.3303(l)(c) (emphasis added).”
Thomas v. State Mortg., Inc, 439 N.W.2d 299 (Mich. Ct. App. 1989). “However, MCL 440.3303; MSA 19.3303 provides as follows: A holder takes the instrument for value (a) to the extent that the agreed consideration has been performed or that he acquires a security interest in or a lien on the instrument otherwise than by legal process; or (b) when…”
Nat'l City Bank v. Syatt Realty Grp., Inc., 497 F. App'x 465 (6th Cir. 2012). “The failure to properly distribute the proceeds of a loan can provide a defense against the enforcement of a negotiable instrument. “If an instrument is issued for a promise of performance, the issuer has a defense to the extent performance of the promise is due and the promise…”
— Mich. Comp. Laws § 440.3303(1)(c) — 1 case
Dugan v. Vlcko, 307 F. Supp. 3d 684 (E.D. Mich. 2018). “Whether a negotiable instrument has been transferred for value and consideration is determined under MCL 440.3303, *691 which states that "a negotiable instrument is issued or transferred for value if is issued of transferred as payment of, or as security for an antecedent claim…”
— Mich. Comp. Laws § 440.3303(2) — 1 case
Dugan v. Vlcko, 307 F. Supp. 3d 684 (E.D. Mich. 2018). “Whether a negotiable instrument has been transferred for value and consideration is determined under MCL 440.3303, *691 which states that "a negotiable instrument is issued or transferred for value if is issued of transferred as payment of, or as security for an antecedent claim…”
— Mich. Comp. Laws § 440.3303(b) — 1 case
Barbour v. Handlos Real Est. & Bldg. Corp., 393 N.W.2d 581 (Mich. Ct. App. 1986). “It has particular application to the purchase by one bank of a substantial part of the paper held by another bank which is threatened with insolvency and seeking to liquidate its assets. Plaintiff also claims that the Handloses did not take "for value” because they did not part…”
— Mich. Comp. Laws § 440.3303(c) — 1 case
Uni-Prods., Inc. v. Bearse (In Re Uni-Prods., Inc.), 153 B.R. 764 (Bankr. E.D. Mich. 1993). “Cf Mich.Comp.Laws § 440.3303(c) (a holder who takes an instrument in exchange for a negotiable instrument is deemed to have given value for the instrument).”
— Mich. Comp. Laws § 440.3303(l)(c) — 3 cases
Conagra, Inc v. Farmers State Bank, 602 N.W.2d 390 (Mich. Ct. App. 1999). “Under the definition of value in MCL 440.3303; MSA 19.3303, it seems clear that Farmers gave value for the government checks, because the Brennans granted rights in the disaster money checks as payment of their debt to Farmers.”
Grand Rapids Auto Sales, Inc. v. MBNA Am. Bank, 227 F. Supp. 2d 721 (W.D. Mich. 2002). “§ 440.3303(l)(c). Here, the checks were issued to MBNA as payment for the antecedent debt of Stewart’s husband.”
Frank v. McLain (In Re Peet Packing Co.), 233 B.R. 387 (Bankr. E.D. Mich. 1999). “Mich.Comp.Laws § 440.3303(l)(c) (emphasis added).”
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