Legal Definitions - holder for value

A holder for value is a person who has given something of value in exchange for a negotiable instrument. This can include:

• Acquiring a security interest in the instrument
• Accepting the instrument in payment of an antecedent claim

For example, if you lend someone money and they give you a promissory note as collateral, you become a holder for value because you have given something of value (the loan) in exchange for the negotiable instrument (the promissory note).

Another example would be if you sell a car and accept a check as payment. You become a holder for value because you have given up ownership of the car in exchange for the negotiable instrument (the check).

In both cases, the person who holds the negotiable instrument has certain rights and protections under the law, including the ability to enforce the instrument if necessary.