Effective - 28 Aug 1965
411.581. Warranties on negotiation or transfer of receipt. — A person who for value negotiates or transfers a receipt by endorsement or delivery, including one who assigns for value a claim secured by a receipt unless a contrary intention appears, warrants:
(1) That the receipt is genuine;
(2) That he has a legal right to negotiate or transfer it;
(3) That he has knowledge of no fact which would impair the validity or worth of the receipt; and
(4) That he has a right to transfer the title to the grain, and that the grain is merchantable or fit for a particular purpose whenever such warranties would have been implied if the contract of the parties had been to transfer the grain without receipts represented thereby.
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(L. 1965 p. 606)
CROSS REFERENCE:
Commercial code provision, 400.7-507