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.