California Commercial Code

§ 1204

COM § 1204 Effective Jan 1, 2024Div. 1 · Ch. 2

Statute text

Except as otherwise provided in Divisions 3, 4, 5, 6, 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 chargeback is provided for in the event of difficulties in collection;

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

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Legislative history

Amended by Stats. 2023, Ch. 210, Sec. 2. (SB 95) Effective January 1, 2024.