---
title: O.C.G.A. § 11-3-202. Negotiation subject to rescission.
collection: code
id: 11-3-202
cite_as: O.C.G.A. § 11-3-202 (2025)
canonical_url: https://georgiacommons.org/code/11-3-202
md_url: https://georgiacommons.org/code/11-3-202.md
text_url: https://georgiacommons.org/code/11-3-202/text
source_url: https://www.legis.ga.gov/api/document/docs/default-source/joint-features-document-library/t11-(v9)-2022-pdf.pdf?sfvrsn=b5451bbd_0#page=368
date: 2025
status: active
corpus_version: 2025-supplement-89aa39ab3c68
license: CC0-1.0
publisher: Georgia Commons, an independent project of Georgia Civic Data. Not the State of Georgia. Not legal advice.
up: https://georgiacommons.org/code/11-3.md
previous: https://georgiacommons.org/code/11-3-201.md
next: https://georgiacommons.org/code/11-3-203.md
index: https://georgiacommons.org/code/index.md
version: the only printed version
in_force: true
current_through: Including Acts of the 2025 Regular Session of the General Assembly
heading_path: COMMERCIAL CODE / NEGOTIABLE INSTRUMENTS / NEGOTIATION, TRANSFER, AND INDORSEMENT
---

# O.C.G.A. § 11-3-202. Negotiation subject to rescission.

(a) Negotiation is effective even if obtained (i) from an infant, a corporation exceeding its powers, or a person without capacity; (ii) by fraud, duress, or mistake; or (iii) in breach of duty or as part of an illegal transaction.

(b) To the extent permitted by other law, negotiation may be rescinded or may be subject to other remedies, but those remedies may not be asserted against a subsequent holder in due course or a person paying the instrument in good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.

## History

Code 1981, § 11-3-202, enacted by Ga. L. 1996, p. 1306, § 3.