Texas Business and Commerce Code
Sec. § 1.204

Except as otherwise provided in Chapters 3 (Negotiable Instruments), 4 (Bank Deposits and Collections), and 5 (Letters of Credit), a person gives value for rights if the person acquires them:


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;


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


by accepting delivery under a preexisting contract for purchase; or


in return for any consideration sufficient to support a simple contract.
Amended by Acts 2003, 78th Leg., ch. 542, Sec. 1, eff. Sept. 1, 2003.
Last accessed
May. 7, 2021