Section 3-207 - Negotiation Effective Although It May Be Rescinded(1) Negotiation is effective to transfer the instrument although the negotiation is (a) made by an infant, a corporation exceeding its powers, or any other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(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.