Section 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; [1993, c. 293, Pt. A, §2(NEW).](b). By fraud, duress or mistake; or [1993, c. 293, Pt. A, §2(NEW).](c). In breach of duty or as part of an illegal transaction. [1993, c. 293, Pt. A, §2(NEW).] [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 To the extent permitted by other law, negotiation may be rescinded or may be subject to other remedies, but those remedies may not be asserted against a subsequent holder in due course or a person paying the instrument in good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. [1993, c. 293, Pt. A, §2(NEW).]
1993, c. 293, §A2 (NEW) .