PARRIS N. GLENDENING, Governor

Ch. 91

(D)    IF, UNDER § 3-303(A)(1), THE PROMISE OF PERFORMANCE THAT IS THE
CONSIDERATION FOR AN INSTRUMENT HAS BEEN PARTIALLY PERFORMED, THE
HOLDER MAY ASSERT RIGHTS AS A HOLDER IN DUE COURSE OF THE INSTRUMENT
ONLY TO THE FRACTION OF THE AMOUNT PAYABLE UNDER THE INSTRUMENT
EQUAL TO THE VALUE OF THE PARTIAL PERFORMANCE DIVIDED BY THE VALUE OF
THE PROMISED PERFORMANCE

(E)     IF (I) THE PERSON ENTITLED TO ENFORCE AN INSTRUMENT HAS ONLY A
SECURITY INTEREST IN THE INSTRUMENT AND (II) THE PERSON OBLIGED TO PAY
THE INSTRUMENT HAS A DEFENSE, CLAIM IN RECOUPMENT, OR CLAIM TO THE
INSTRUMENT THAT MAY BE ASSERTED AGAINST THE PERSON WHO GRANTED THE
SECURITY INTEREST, THE PERSON ENTITLED TO ENFORCE THE INSTRUMENT MAY
ASSERT RIGHTS AS A HOLDER IN DUE COURSE ONLY TO AN AMOUNT PAYABLE
UNDER THE INSTRUMENT WHICH, AT THE TIME OF ENFORCEMENT OF THE
INSTRUMENT, DOES NOT EXCEED THE AMOUNT OF THE UNPAID OBLIGATION
SECURED.

(F)     TO BE EFFECTIVE, NOTICE MUST BE RECEIVED AT A TIME AND IN A
MANNER THAT GIVES A REASONABLE OPPORTUNITY TO ACT ON IT.

(G)    THIS SECTION IS SUBJECT TO ANY LAW LIMITING STATUS AS A HOLDER IN
DUE COURSE IN PARTICULAR CLASSES OF TRANSACTIONS.

3-303.

(A)    AN INSTRUMENT IS ISSUED OR TRANSFERRED FOR VALUE IF:

(1)     THE INSTRUMENT IS ISSUED OR TRANSFERRED FOR A PROMISE OF
PERFORMANCE, TO THE EXTENT THE PROMISE HAS BEEN PERFORMED;

(2)     THE TRANSFEREE ACQUIRES A SECURITY INTEREST OR OTHER
LIEN IN THE INSTRUMENT OTHER THAN A LIEN OBTAINED BY JUDICIAL
PROCEEDING;

(3)     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;

(4)     THE INSTRUMENT IS ISSUED OR TRANSFERRED IN EXCHANGE FOR
A NEGOTIABLE INSTRUMENT; OR

(5)     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.

(B)     "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

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