8.3A-202 - A-202. Negotiation subject to rescission. - Virginia Statutes

§ 8.3A-202. Negotiation subject to rescission.

(a) Negotiation is effective even if obtained (i) from an infant, acorporation exceeding its powers, or a person without capacity, (ii) byfraud, duress, or mistake, or (iii) in breach of duty or as part of anillegal transaction.

(b) To the extent permitted by other law, negotiation may be rescinded or maybe subject to other remedies, but those remedies may not be asserted againsta subsequent holder in due course or a person paying the instrument in goodfaith and without knowledge of facts that are a basis for rescission or otherremedy.

(Code 1950, § 6-374; 1964, c. 219, § 8.3-207; 1992, c. 693.)