N.Y. Uniform Commercial Code Law § 3-305 (2026)

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