N.Y. U.C.C. 3-305

Section 3--305. Rights of a Holder in Due Course.\n To the extent that a holder is a holder in due course he takes the\ninstrument free from\n (1) all claims to it on the part of any person; and\n (2) all defenses of any party to the instrument with whom the holder\nhas not dealt except\n (a) infancy, to the extent that it is a defense to a simple\n contract; and\n (b) such other incapacity, or duress, or illegality of the\n transaction, as renders the obligation of the party a\n nullity; and\n (c) such misrepresentation as has induced the party to sign the\n instrument with neither knowledge nor reasonable opportunity\n to obtain knowledge of its character or its essential terms;\n and\n (d) discharge in insolvency proceedings; and\n (e) any other discharge of which the holder has notice when he\n takes the instrument.\n