Section 1303.23 - Negotiation subject to rescission - UCC 3-202(A) Negotiation is effective even if it is obtained in any of the following manners:(1) From an infant, a corporation exceeding its powers, or any other person without capacity;(2) By fraud, duress, or mistake of any kind;(3) As part of an illegal transaction;(B) To the extent permitted by other law, negotiation may be rescinded or may be subject to other remedies, but those remedies may not be asserted against a subsequent holder in due course or a person paying the instrument in good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 the rescission or other remedy. Effective Date: 8/19/1994 .