Kentucky Statutes 355.3-202 – Negotiation subject to rescission
Current as of: 2024 | Check for updates
|
Other versions
(1) Negotiation is effective even if obtained:
(a) From an infant, a corporation exceeding its powers, or a person without capacity;
(b) By fraud, duress, or mistake; or
(c) 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(2) To the extent permitted by other law, negotiation may be rescinded or may be subject to other remedies, but those remedies may not be asserted against a subsequent holder in due course or a person paying the instrument in good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.
Effective: January 1, 1997
History: Repealed and reenacted 1996 Ky. Acts ch. 130, sec. 21, effective January 1,
1997. — Created 1958 Ky. Acts ch. 77, sec. 3-202, effective July 1, 1960.
(a) From an infant, a corporation exceeding its powers, or a person without capacity;
Terms Used In Kentucky Statutes 355.3-202
- Fraud: Intentional deception resulting in injury to another.
- Rescission: The cancellation of budget authority previously provided by Congress. The Impoundment Control Act of 1974 specifies that the President may propose to Congress that funds be rescinded. If both Houses have not approved a rescission proposal (by passing legislation) within 45 days of continuous session, any funds being withheld must be made available for obligation.
(b) By fraud, duress, or mistake; or
(c) 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(2) To the extent permitted by other law, negotiation may be rescinded or may be subject to other remedies, but those remedies may not be asserted against a subsequent holder in due course or a person paying the instrument in good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.
Effective: January 1, 1997
History: Repealed and reenacted 1996 Ky. Acts ch. 130, sec. 21, effective January 1,
1997. — Created 1958 Ky. Acts ch. 77, sec. 3-202, effective July 1, 1960.