{"code":"COM","codeName":"Commercial Code","section":"1204","citation":"Com. Code, § 1204","status":"in-force","lawOn":"2026-09-28","headings":[{"name":"DIVISION 1. GENERAL PROVISIONS [1101. - 1310.]","url":"https://blackletter.si/commercial-code/division-1"},{"name":"CHAPTER 2. General Definitions and Principles of Interpretation [1201. - 1206.]","url":"https://blackletter.si/commercial-code/division-1/chapter-2"}],"history":"Amended by Stats. 2023, Ch. 210, Sec. 2.   (SB 95)   Effective January 1, 2024.","effective":"2024-01-01","html":"<p>Except as otherwise provided in Divisions 3, 4, 5, 6, and 12, a person gives value for rights if the person acquires them:</p><p>(1) in return for a binding commitment to extend credit or for the extension of immediately available credit, whether or not drawn upon and whether or not a chargeback is provided for in the event of difficulties in collection;</p><p>(2) as security for, or in total or partial satisfaction of, a preexisting claim;</p><p>(3) by accepting delivery under a preexisting contract for purchase; or</p><p>(4) in return for any consideration sufficient to support a simple contract.</p>","text":"Except as otherwise provided in Divisions 3, 4, 5, 6, and 12, a person gives value for rights if the person acquires them: (1) in return for a binding commitment to extend credit or for the extension of immediately available credit, whether or not drawn upon and whether or not a chargeback is provided for in the event of difficulties in collection; (2) as security for, or in total or partial satisfaction of, a preexisting claim; (3) by accepting delivery under a preexisting contract for purchase; or (4) in return for any consideration sufficient to support a simple contract.","otherVersions":[],"url":"https://blackletter.si/commercial-code/general-definitions-and-principles-of-interpretation-1204","source":"California Legislative Information bulk export (pubinfo)"}