13 GCA § 3207: Negotiation Effective Although It May Be Rescinded.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.