30-3-209. Negotiation subject to rescission. (1) Negotiation is effective even if obtained:

Terms Used In Montana Code 30-3-209

  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Fraud: Intentional deception resulting in injury to another.
  • Good faith: means honesty in fact and the observance of reasonable commercial standards of fair dealing. See Montana Code 30-3-102
  • Person: includes a corporation or other entity as well as a natural person. See Montana Code 1-1-201
  • Rescission: The cancellation of budget authority previously provided by Congress. The Impoundment Control Act of 1974 specifies that the President may propose to Congress that funds be rescinded. If both Houses have not approved a rescission proposal (by passing legislation) within 45 days of continuous session, any funds being withheld must be made available for obligation.

(a)from an infant, a corporation exceeding its powers, or a person without capacity; or

(b)by fraud, duress, or mistake or in breach of duty or as part of an illegal transaction.

(2)To the extent permitted by law, negotiation may be rescinded or may be subject to other remedies, but those remedies may not be asserted against a subsequent holder in due course or a person paying the instrument in good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.