Section 27Part 2 — Bills of Exchange
Value and holder for value
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Valuable consideration for a bill may be constituted by —
any consideration sufficient to support a simple contract; or
an antecedent debt or liability; and such a debt or liability is deemed valuable consideration whether the bill is payable on demand or at a future time.
Where value has, at any time, been given for a bill, the holder is deemed to be a holder for value as regards the acceptor and all parties to the bill who became parties prior to such time.
Where the holder of a bill has a lien on it, arising either from contract or by implication of law, the holder is deemed to be a holder for value to the extent of the sum for which the holder has a lien.
Defined Terms
holder for value