§12A-3-202.

§12A-3-202.
   
                     NEGOTIATION SUBJECT TO RESCISSION
                                      
   (a) Negotiation is effective even if obtained (i) from an infant, a
   corporation exceeding its powers, or a person without capacity, (ii)
   by fraud, duress, or mistake, or (iii) 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   (b) To the extent permitted by other law, negotiation may be rescinded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.