(810 ILCS 5/3-202) (from Ch. 26, par. 3-202)
Sec. 3-202.
Negotiation subject to rescission.
(a) Negotiation is effective even if obtained (i) from an infant, a
corporation exceeding its powers, or a person without capacity, (ii) by
fraud, duress, or mistake, or (iii) in breach of duty or as part of an
illegal transaction.
(b) To the extent permitted by other law, negotiation may be rescinded
or may be subject to other remedies, but those remedies may not be asserted
against a subsequent holder in due course or a person paying the instrument
in good faith and without knowledge of facts that are a basis for
rescission or other remedy.
(Source: P.A. 87-582; 87-1135.)
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