Effective - 28 Aug 2017, 2 histories
400.7-507. Warranties on negotiation or transfer of receipt or bill. — If a person negotiates or delivers a document of title for value, otherwise than as a mere intermediary under section 400.7-508, 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.
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(L. 1963 p. 503 § 7-507, A.L. 2017 H.B. 34)