Mich. Comp. Laws § 440.3202
Negotiation; effective although subject to rescission or other remedies.
Michigan · Michigan Compiled Laws — UNIFORM COMMERCIAL CODE (Act 174 of 1962) · Status: effective
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- Citation
- Mich. Comp. Laws § 440.3202, Negotiation; effective although subject to rescission or other remedies, Michigan, version 1 as recorded 2026-08-18, yourstate.us, https://yourstate.us/provision/1361952
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Full text
(1) 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.
(2) To the extent permitted by other law, negotiation may be rescinded or may be subject to other remedies, but those remedies may not be asserted against a subsequent holder in due course or a person paying the instrument in good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.