III. Consideration A. Consideration presumed (Sec.

24) Every negotiable instrument is deemed prima facie to have been issued for a valuable consideration; and every person whose signature appears thereon to have become a party thereto for value. The cause why the maker/drawer issued and why the indorser transferred the instrument or what they got in return for issuing or transferring as the case may be. It must be a valuable consideration. party need not prove that he gave valuable consideration when he took the instrument because the law presumes that there is a valuable consideration. nybody who claims that a particular party did not ac!uire the instrument for a consideration must prove such fact. B. Value/Holder for value (Secs. 25 to 2 ) Value " any consideration sufficient to support a simple contract. n antecedent or pre#e$isting debt constitutes value; and is deemed such whether the intrument is payable on demand or at a future time. %&ec.'() *I+,. # love and affection do not constitute valuable consideration. -ence) a transferee who ac!uired the instrument as a gift from another is not a holder for value. Holder for value " where the value has at any time been given for the instrument) the holder is deemed a holder for value in respect to all parties who become such prior to that time. %&ec. '.) *I+, !"en lien on intrument constitutes "older for value " where the holder has a lien on the instrument arising either from contract or by implication of law) he is deemed a holder for value to the e$tent of his lien. %&ec. '/) *I+, #ien " a charge against or interest in property to secure payment of a debt or performance of an obligation. %e.g. lien arises because of a mortgage or pledge,. +ien as consderation " lien is also a valuable consideration. If a negotiable certificate of time deposit was delivered to another by way of pledge) the transferee is a holder for value up to the e$tent of the amount secured.

C. A$sence/failure of consideration (Sec.2%) bsence or failure of consideration is a matter of defense as against any person not a holder in due course; and partial failure of consideration is a defense pro tanto) whether the failure is an ascertained and li!uidated amount or otherwise.