(3-202) Negotiation subject to rescission
N.D. Cent. Code § 41-03-21
in effect41-03-21. (3-202) Negotiation subject to rescission
1. Negotiation is effective even if obtained from an infant, a corporation exceeding its
powers, or a person without capacity, by fraud, duress, or mistake, or in breach of duty
or as part of an illegal transaction.
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 To the extent permitted by other law, negotiation may be rescinded or may be subject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.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://ndlegis.gov/cencode/t41c03.pdf#nameddest=41-03-21Fetched: 10/16/2026