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New York Consolidated Laws, Uniform Commercial Code - UCC § 3-207. Negotiation Effective Although It May Be Rescinded

Current as of January 01, 2026 | Updated by Findlaw Staff

(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.

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Cite this article: FindLaw.com - New York Consolidated Laws, Uniform Commercial Code - UCC § 3-207. Negotiation Effective Although It May Be Rescinded - last updated January 01, 2026 | https://codes.findlaw.com/ny/uniform-commercial-code/ucc-sect-3-207/

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