N.Y. Uniform Commercial Code Law § 3-207: Negotiation Effective Although It May Be Rescinded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 Negotiation Effective Although It May Be Rescinded.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