When Bank Gives Value for Purposes of Holder in Due Course

Ala. Code § 7-4-211, under Collection of Items: Depositary and Collecting Banks.

Ala. Code § 7-4-211

For purposes of determining its status as a holder in due course, a bank has given value to the extent it has a security interest in an item, if the bank otherwise complies with the requirements of Section 7-3-302 on what constitutes a holder in due course. (Acts 1995, No. 95-668, p. 1381, §2.)