Commonwealth Consolidated Acts

BILLS OF EXCHANGE ACT 1909 - SECT 32

             (1)  Valuable consideration for a bill may be constituted by:

                     (a)  any consideration sufficient to support a simple contract; or

                     (b)  an antecedent debt or liability. Such a debt or liability is deemed valuable consideration whether the bill is payable on demand or at a future time.

             (2)  Where value has at any time been given for a bill, the holder is deemed to be a holder for value as regards the acceptor and all parties to the bill who became parties prior to such time.

             (3)  Where the holder of a bill has a lien on it, arising either from contract or by implication of law, he or she is deemed to be a holder for value to the extent of the sum for which he or she has a lien.