75-7-507 - Warranties on negotiation or delivery of document of title.
§ 75-7-507. 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 75-7-508, unless otherwise agreed, the transferor warrants to its immediate purchaser only in addition to any warranty made in selling or leasing the goods 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.
Sources: Codes, 1942, § 41A:7-507; Laws, 1966, ch. 316, § 7-507; Laws, 2006, ch. 527, § 34; Laws, 2007, ch. 355, § 31; Laws, 2007, ch. 381, § 31, eff from and after passage (approved Mar. 15, 2007.)