Statute · California Commercial Code
Cal. Com. Code § 3202 — Negotiation, Transfer, and Indorsement
Cal. Com. Code § 3202
- Type
- Statute
- Source
- California Commercial Code
- Jurisdiction
- California
- Date
- 1993-01-01
- Current through
- Nov 2, 2026 (California Legislative Counsel)
(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.
Citator
Cal. Com. Code § 3202 — Negotiation, Transfer, and Indorsement is in force in the current edition of the Code, and nothing recorded condemns it.
(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(b) To the extent permitted by other law, negotiation may be rescinded or may be subject to other remedies, but those remedies may not be asserted against a subsequent holder in due course or a person paying the instrument in good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.