§3303 Value for Transfer or Obligation

Summary

Defines when a transfer or taking on a debt counts as giving value: it counts if, in return, property is transferred or an earlier debt is paid or secured, but it does not include an unkept promise to provide support made outside the giver’s normal business. For sections 3304 and 3307, buying a debtor’s interest at a regular, non-collusive foreclosure or power-of-sale counts as reasonably equivalent value. A transfer is for present value when both sides intend the exchange to happen at the same time and it does.