Section 3202 - Negotiation subject to rescission(a) General rule.--Negotiation is effective even if obtained: (1) from an infant, a corporation exceeding its powers or a person without capacity;(2) by fraud, duress or mistake; or(3) in breach of duty or as part of an illegal transaction.(b) Rescission or other remedies.--To the extent permitted by other law, negotiation may be rescinded or may be subject to other remedies, but those remedies may not be asserted against a subsequent holder in due course or a person paying the instrument in good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.1992, July 9, P.L. 507, No. 97, § 5, effective in one year.