HRS §490:3-202
When a transfer of a check or note can be canceled
Read the official text at capitol.hawaii.gov ↗This section says that transferring a check or note to someone else is still valid even if the transfer was made by a minor, a company acting beyond its powers, someone lacking legal capacity, or was caused by fraud, pressure, or mistake. However, the transfer can sometimes be canceled under other laws, but not against a later innocent holder who paid for it in good faith.
everyone
The statute, as written — Negotiation subject to rescission
A copy, taken August 20, 2026. The version published by the Legislature is the one that governs, and it may have changed since. Check it before relying on anything here.
(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 (b) To the extent permitted by other law, negotiation may be rescinded or may be subject to other remedies, but those remedies may not be asserted against a subsequent holder in due course or a person paying the instrument in good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.
LawTrove is not legal advice. The summary above is a computer-generated restatement — the authoritative text is the official version linked above.