57A-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 §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.
Source: SL 2009, ch 254, §7-507.