Warranties on Negotiation or Transfer of Receipt or Bill.
If a person negotiates or transfers a document of title for value, otherwise than as a mere intermediary under Section 7-508 of this title, 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 transfer is rightful and fully effective with respect to the title to the document and the goods it represents.
Added by Laws 1961, p. 150, § 7-507. Amended by Laws 2005, c. 140, § 34, eff. Jan. 1, 2006.