ACCEPTED FOR VALUE - Explained 1 Year, 6 Months ago
Acceptance for Value
Acceptance for value is a muddy concept for many people. It is often misunderstood.Here's my attempt at explaining it! For more info,vinyasi-public-records.info/data/a4v.pdf Acceptance for value is a commercial remedy. A remedy is a commercial right that isobtained through an instrument (includes tax bills, violation tickets, etc...). Accepted for value is a qualified endorsement (modified signature) on an instrument. A blank endorsement (simply your signature or total non-acceptance) waives remedies that aremade available through the instrument by waiving defects in the instrument.
-Acceptance - An agreement, either by express act or by implication from conduct, to theterms of an offer so that a binding contract is formed. If an acceptance modifies theterms or adds new ones, it generally operates as a counter offer. (Black's 7th)-Acceptance - The taking and receiving of anything in good part, and as it were a tacit agreement to a preceding act, which might have been defeated or avoided if suchacceptance had not been made. (Black's 4th)
If an instrument is issued based on a pre-existing agreement or contract, it does not haveto be issued for value. The issuer's defenses are in that contract. If the agreement of thetransferee (person who receives the instrument, e.g. US citizen receiving a violationticket) is not performed to the satisfaction of the transferor, he can back up his claimswith that contract. If there is no pre-existing contract, the instrument must be issued for value. Issued for value is the same thing as issued to get value. The instrument has novalue when it is issued, it is seeking it. It is seeking a person to accept his offer unconditionally, thereby waiving all remedies made available. When you receive tax bills, tickets, penal action indictments, the presumed basis for issuing that instrument wasthe violation of a US statute. If you have no contract or promise given to act under thosestatutes, there is no obligation to pay. If a person gives this instrument a qualifiedendorsement, Accepted for Value, he is literally turning the instrument into the payment.The transferee gains a security interest in the instrument and becomes the holder in duecourse. The liability stays with the issuer, instead of being transferred to you. In that position, you can enforce the instrument on the issuer. He becomes the transferee.UCC 1-201. General definitions44. "Value". Except as otherwise provided with respect to negotiable instruments and bank collections (sections 3-303, 4-210, 4-211) a person gives "value" for rights if hequires them:(a) 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 charge- back is provided for in the event of difficulties in collection; or (b) As security for in total or partial satisfaction of a preexisting claim; or