Negotiation Effective Although It May Be Rescinded.

  1. Law
  2. New York Laws
  3. Uniform Commercial Code
  4. Transfer and Negotiation
  5. Negotiation Effective Although It May Be Rescinded.

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Section 3--207. Negotiation Effective Although It May Be Rescinded.

(1) Negotiation is effective to transfer the instrument although the negotiation is

(a) made by an infant, a corporation exceeding its powers, or any other person without capacity; or

(b) obtained by fraud, duress or mistake of any kind; or

(c) part of an illegal transaction; or

(d) made in breach of duty.

(2) Except as against a subsequent holder in due course such negotiation is in an appropriate case subject to rescission, the declaration of a constructive trust or any other remedy permitted by law.


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