41-07-36. (7-507) Warranties on negotiation or delivery of document of title.
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/nd/title-41/chapter-41-07-documents-of-title/41-07-36·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
If a person negotiates or delivers a document of title for value, otherwise than as a mere intermediary under section 41-07-37, 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.