(A) Negotiation is effective even if it is obtained in any of the following manners:
(1) From an infant, a corporation exceeding its powers, or any other person without capacity;
(2) By fraud, duress, or mistake of any kind;
(3) As part of an illegal transaction;
(4) In breach of duty.
(B) To the extent permitted by other law, negotiation may be rescinded or may be subject to other remedies, but those remedies may not be asserted against a subsequent holder in due course or a person paying the instrument in good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 the rescission or other remedy.
Effective Date: 08-19-1994
Section: Previous 1303.15 1303.16 1303.17 1303.18 1303.19-1303.20 1303.21 1303.22 1303.23 1303.24 1303.25 1303.26 1303.27 1303.28 1303.29-1303.30 1303.31 NextLast modified: October 10, 2016