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This entry was published on 2014-12-26
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SECTION 7-507
Warranties on Negotiation or Delivery of Document of Title
Uniform Commercial Code (UCC) CHAPTER 38, ARTICLE 7, PART 5
Section 7--507. Warranties on Negotiation or Delivery of Document of

Title.

If a person negotiates or delivers a document of title for value,
otherwise than as a mere intermediary under Section 7--508, unless
otherwise agreed, the transferor, in addition to any warranty made in
selling or leasing the goods, warrants to its immediate purchaser only
that:

(1) the document is genuine;

(2) the transferor does not have knowledge of any fact that would
impair the document's validity or worth; and

(3) the negotiation or delivery is rightful and fully effective with
respect to the title to the document and the goods it represents.