164

LAWS OF MARYLAND

[Ch. 49

3—303. Taking for value.

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 he takes the instrument in payment
of or as security for an antecedent claim against any
person whether or not the claim is due; or

(c) When he gives a negotiable instrument for
it or makes an irrevocable commitment to a third person.

3—304. Notice to purchaser.

(1) The purchaser has notice of a claim or defense
if

(a)    The instrument is so incomplete, bears
such visible evidence of forgery or alteration, or is
otherwise so irregular as to call into question its
validity, terms or ownership or to create an ambiguity as
to the party to pay; or

(b)    The purchaser has notice that the
obligation of any party is voidable in whole or in part,
or that all parties have been discharged.

(2)   The purchaser has notice of a claim against the
instrument when he has knowledge that fiduciary has
negotiated the instrument in payment of or as security
for his own debt or in any transaction for his own
benefit or otherwise in breach of duty.

(3)    The purchaser has notice that an instrument is
overdue if he has reason to know

(a) That any part of the principal amount is
overdue or that there is an uncured default in payment of
another instrument of the same series; or

(b) That acceleration of the instrument has
been made; or

(c) That he is taking a demand instrument after
demand has been made or more than a reasonable length of
time after its issue. A reasonable time for a check
drawn and payable within the states and territories of
the United States and the District of Columbia is
presumed to be thirty days.