§ 4-3-202 — Negotiation subject to rescission

Colorado § 4-3-202

• Jurisdiction: Colorado
• Title 04: Uniform
• Art.: Negotiable Instruments

Text

(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(b) To the extent permitted by other law, negotiation may be rescinded or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.

Legislative History

Source: L. 94: Entire article R&RE, p. 850, � 1, effective January 1, 1995.