Hi All:

Say are some of you UCC, Article 3 jocks?  Maybe you can help me understand
3-202.  It  is this:

Negotiation Subject to Rescission.
(a)  Negotiation is effective even if obtained (i) from an infant, a
corporation exceeding its powers, or a person without capacity, or
(ii) fraud, duress, or mistake, or in brach of duty or as part of an illegal
transaction.
(b)  To the extent permitted by law, negotiation may be rescinded or may be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.

I am not clear how negotiation can be effective from, say, an infant, if
infancy is a universal defense that can be raised even as against a HDC.

Any body have some clarification here?

Thanks.

Dan.

Daniel M. Warner
Dept. of Acct. (Business Law)
MS 9071
Western Washington University
Bellingham, WA 98225
voice: (360) 650-3390
fax: (360) 650-4844
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