§ 6A-3-202 - Negotiation subject to rescission. - Rhode Island Statutes

SECTION 6A-3-202

   § 6A-3-202  Negotiation subject torescission. – (a) Negotiation is effective even if obtained (i) from an infant, a corporationexceeding its powers, or a person without capacity, (ii) by fraud, duress, ormistake, or (iii) in breach of duty or as part of an illegal transaction.

   (b) To the extent permitted by other law, negotiation may berescinded or may be subject to other remedies, but those remedies may not beasserted against a subsequent holder in due course or a person paying theinstrument in good faith and without knowledge of facts that are a basis forrescission or other remedy.