2010 Pennsylvania Code
Title 13 - COMMERCIAL CODE
Chapter 32 - Negotiation, Transfer and Indorsement
3202 - Negotiation subject to rescission.

     § 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     by other law, negotiation may be rescinded or may be subject to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.