1303.23 Negotiation subject to rescission - UCC 3-202.
1303.23 Negotiation subject to rescission - UCC 3-202.
(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(B) To the extent permitted by other law, negotiation may be rescinded or may be subject to other remedies, but those remedies may not be asserted against a subsequent holder in due course or a person paying the instrument in good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