(1) Negotiation is effective to transfer the instrument although the negotiation is (a) Made by an infant, a corporation exceeding its powers, or any other person without capacity; or
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(b) Obtained by fraud, duress or mistake of any kind; or (c) Part of an illegal transaction; or (d) Made in breach of duty. (2) Except as against a subsequent holder in due course such negotiation is in an appropriate case subject to rescission, the declaration of a constructive trust or any other remedy permitted by law.