Indiana § 26-1-3.1-202 Negotiation subject to rescission

Indiana Statutes

§ 26-1-3.1-202 — Negotiation subject to rescission

Indiana § 26-1-3.1-202

Title 26COMMERCIAL LAW

Art. 1UNIFORM COMMERCIAL CODE

Ch. 3.1Negotiable Instruments

This text of Indiana § 26-1-3.1-202 (Negotiation subject to rescission) is published on Counsel Stack Legal Research, covering Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Ind. Code § 26-1-3.1-202 (2026).

Text

(a)Negotiation is effective even if obtained:

(1)from an infant, a corporation exceeding its powers, or a person without capacity;

(2)by fraud, duress, or mistake; or

(3)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(b)To the extent permitted by other law, negotiation may be rescinded or may be subject to other remedies, but those remedies may not be asserted against a subsequent holder in due course or a person paying the instrument in good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.

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(a) Negotiation is effective even if
obtained:
(1) from an infant, a corporation exceeding its powers, or a person
without capacity;
(2) by fraud, duress, or mistake; or
(3) 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rescinded or may be subject to other remedies, but those remedies may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.