If a person negotiates or delivers a document of title for value, otherwise than as a mere intermediary under section 4-7-508, 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. (1) The document is genuine;
2. (2) The transferor does not have knowledge of any fact that would impair the document's validity or worth; and
3. (3) The negotiation or delivery is rightful and fully effective with respect to the title to the document and the goods it represents.

Source: L. 2006: Entire article R&RE, p. 488, § 2, effective September 1. L. 2007: IP amended, p. 373, § 22, effective August 3.

Editor's note: This section is similar to former § 4-7-507 as it existed prior to 2006.