Pennsylvania § 3202 Negotiation subject to rescission

Pennsylvania Statutes

§ 3202 — Negotiation subject to rescission

Pennsylvania § 3202

Title 13COMMERCIAL CODE

Ch. 32NEGOTIATION, TRANSFER AND INDORSEMENT

This text of Pennsylvania § 3202 (Negotiation subject to rescission) is published on Counsel Stack Legal Research, covering Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

13 Pa. Cons. Stat. § 3202 (2026).

Text

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(b)Rescission or other remedies.--To the extent permitted by other law, negotiation may be rescinded or may be subject to other remedies, but those remedies may not be asserted against a subsequent holder in due course or a person paying the instrument in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

Free access — add to your briefcase to read the full text and ask questions with AI

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(b) Rescission or other remedies.--To the extent permitted by other law, negotiation may be rescinded or may be subject to other remedies, but those remedies may not be asserted against a subsequent holder in due course or a person paying the instrument in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