New York Uniform Commercial Code Code § 4-209

When Bank Gives Value for Purposes of Holder in Due Course
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Section 4--209. When Bank Gives Value for Purposes of Holder in Due\n                  Course.\n  For purposes of determining its status as a holder in due course, the\nbank has given value to the extent that it has a security interest in an\nitem provided that the bank otherwise complies with the requirements of\nSection 3--302 on what constitutes a holder in due course.\n

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