N.Y. Uniform Commercial Code Law Section 3-207
Negotiation Effective Although It May Be Rescinded

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 Negotiation Effective Although It May Be Rescinded.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.

Source: Section 3-207 — Negotiation Effective Although It May Be Rescinded, https://www.­nysenate.­gov/legislation/laws/UCC/3-207 (updated Sep. 22, 2014; accessed Dec. 21, 2024).

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Accessed:
Dec. 21, 2024

Last modified:
Sep. 22, 2014

§ 3-207’s source at nysenate​.gov

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