§3-1202. Negotiation subject to rescission
(1).
Negotiation is effective even if obtained:
(a).
From an infant, a corporation exceeding its powers or a person without capacity;
[PL 1993, c. 293, Pt. A, §2 (NEW).]
(b).
By fraud, duress or mistake; or
[PL 1993, c. 293, Pt. A, §2 (NEW).]
(c).
In breach of duty or as part of an illegal transaction.
[PL 1993, c. 293, Pt. A, §2 (NEW).]
[PL 1993, c. 293, Pt. A, §2 (NEW).]
(2).
To the extent permitted by other law, negotiation may be rescinded or may be subject to other remedies, but those remedies may not be asserted against a subsequent holder in due course or a person paying the instrument in good faith and without knowledge of facts that are a basis for rescission or other remedy.
[PL 1993, c. 293, Pt. A, §2 (NEW).]
SECTION HISTORY
PL 1993, c. 293, §A2 (NEW).