57A-7-507. Warranties on negotiation or delivery of document of title.
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/sd/title-57/chapter-57-7/57a-7-507A 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 § 57A-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.