What is, Accepted For Value? better find out!Submitted by wninja on Sun, 12/28/2008 - 22:12
GREAT Reference publication.
What Does Accepted for Value Mean?
Accepted for Value (A4V) is at the foundation of remedies available for commercial demands made by the United States, so many people have attempted to use it to close accounts in the United States. Even so, no one has had a good explanation of what A4V means. Here is an attempt to clarify.
The Uniform Commercial Code in Article 3 that deals with negotiable instruments is one source of explanation. Article 8 deals with investment securities, and Article 9 deals with secured transactions. In addition to opinions written by judges to shed light on our remedies, all three of these articles hold a key to understanding commercial setoff. The UCC had an overhaul in 2000, but the major principles remain the same. The changes appear to be to the sections that deal with secured transactions (Article 9) and some with investment securities (Article 8), but
negotiable instruments are what lead to those securities. The phrase “accepted for value” has little coverage in the code books or in court opinions. A better understanding of the commercial terms “acceptance” and “value” and how they relate to instruments in general would be a good place to start.