47-3202. Negotiation subject to rescission
A. Negotiation is effective even if obtained:
1. From an infant, a corporation exceeding its powers or a person without capacity;
2. By fraud, duress or mistake; or
3. In breach of duty or as part of an illegal transaction.
B. To the extent permitted by other law, negotiation may be rescinded or may be subject to other remedies, but those remedies may not be asserted against a subsequent holder in due course or a person paying the instrument in good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.
Section: Previous 47-3114 47-3115 47-3116 47-3117 47-3118 47-3119 47-3201 47-3202 47-3203 47-3204 47-3205 47-3206 47-3207 47-3301 47-3302 NextLast modified: October 13, 2016