Section 400.7-507

Title XXVI TRADE AND COMMERCE

Chapter 400

Effective - 28 Aug 1963, 2 histories, see footnote   (history) 

  400.7-507.  Warranties on negotiation or transfer of receipt or bill. — Where a person negotiates or transfers a document of title for value otherwise than as a mere intermediary under section 400.7-508, then unless otherwise agreed he warrants to his immediate purchaser only in addition to any warranty made in selling the goods

  (a)  that the document is genuine; and

  (b)  that he has no knowledge of any fact which would impair its validity or worth; and

  (c)  that his negotiation or transfer 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)