Maine Revised Statutes Title 11 Sec. 3-1202 – Negotiation subject to rescission
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(1). Negotiation is effective even if obtained:
(a). From an infant, a corporation exceeding its powers or a person without capacity; [PL 1993, c. 293, Pt. A, §2 (NEW).]
(b). By fraud, duress or mistake; or [PL 1993, c. 293, Pt. A, §2 (NEW).]
(c). In breach of duty or as part of an illegal transaction. [PL 1993, c. 293, Pt. A, §2 (NEW).]
[PL 1993, c. 293, Pt. A, §2 (NEW).]
Terms Used In Maine Revised Statutes Title 11 Sec. 3-1202
- 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.
- Infant: means a person who has not attained the age of 18 years. See Maine Revised Statutes Title 1 Sec. 72
- 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 The Impoundment Control Act of 1974 specifies that the President may propose to Congress that funds be rescinded.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.
(2). To the extent permitted by other law, negotiation may be rescinded or may be subject to other remedies, but those remedies may not be asserted against a subsequent holder in due course or a person paying the instrument in good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.
[PL 1993, c. 293, Pt. A, §2 (NEW).]
SECTION HISTORY
PL 1993, c. 293, §A2 (NEW).