400.3-202. Negotiation subject to rescission.
Negotiation subject to rescission.
400.3-202. (a) Negotiation is effective even if obtained(i) from an infant, a corporation exceeding its powers, or aperson without capacity, (ii) by fraud, duress, or mistake, or(iii) in breach of duty or as part of an illegal transaction.
(b) To the extent permitted by other law, negotiation maybe rescinded or may be subject to other remedies, but thoseremedies may not be asserted against a subsequent holder in duecourse or a person paying the instrument in good faith andwithout knowledge of facts that are a basis for rescission orother remedy.
(L. 1992 S.B. 448)*No continuity with § 400.3-202 as repealed by L. 1992 S.B. 448.