§ 3202. Negotiation subject to rescission.
109 words·~1 min read·
/pa/title-13/chapter-32/3202A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
§ 3202. Negotiation subject to rescission.
(a)General rule.-- 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(b)Rescission or other remedies.-- To the extent permitted by other law, negotiation may be rescinded or may be subject to other remedies, but those remedies may not be asserted against a subsequent holder in due course or a person paying the instrument in good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.
13c3203s