Negotiation Effective Although It May Be Rescinded

(1)Negotiation is effective to transfer the instrument although the negotiation is

(a)Made by an infant, a corporation exceeding its powers, or any other person without capacity; or COL120106 DIV. 3 COMMERCIAL PAPER

(b)Obtained by fraud, duress or mistake of any kind; or

(c)Part of an illegal transaction; or

(d)Made in breach of duty.

(2)Except as against a subsequent holder in due course such negotiation is in an appropriate case subject to rescission, the declaration of a constructive trust or any other remedy permitted by law.