N.Y. U.C.C. 3-207

Section 3--207. Negotiation Effective Although It May Be Rescinded.\n (1) Negotiation is effective to transfer the instrument although the\nnegotiation is\n (a) made by an infant, a corporation exceeding its powers, or any\n other person without capacity; or\n (b) obtained by fraud, duress or mistake of any kind; or\n (c) part of an illegal transaction; or\n (d) made in breach of duty.\n (2) Except as against a subsequent holder in due course such\nnegotiation is in an appropriate case subject to rescission, the\ndeclaration of a constructive trust or any other remedy permitted by\nlaw.\n