Statute · New York Uniform Commercial Code

N.Y. U.C.C. Law § 3-207 — Negotiation Effective Although It May Be Rescinded

N.Y. U.C.C. Law § 3-207

Type
Statute
Source
New York Uniform Commercial Code
Jurisdiction
New York
Current through
Nov 4, 2026 (NY Senate Open Legislation)

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 Negotiation Effective Although It May Be Rescinded.

Citator

N.Y. U.C.C. Law § 3-207 — Negotiation Effective Although It May Be Rescinded is in force in the current edition of the Code, and nothing recorded condemns it.

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 Negotiation Effective Although It May Be Rescinded.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.