1) A financing agency by paying or purchasing for value a draft which relates to a shipment of goods acquires to the extent of the payment or purchase and in addition to its own rights under the draft and any document of title securing it any rights of the shipper in the goods including the right to stop delivery and the shipper's right to have the draft honored by the buyer.

1. (2) The

   right to reimbursement of a financing agency which has in good faith honored or purchased the draft under commitment to or authority from the buyer is not impaired by subsequent discovery of defects with reference to any relevant document which was apparently regular on its face.

   Oklahoma Code Comment

2. (1) This section is more extensive than previous Oklahoma law. A

   bank who paid a draft accompanied by a negotiable bill of lading acquired title to the bill. State Nat. Bank of Oklahoma City v. Wood, 43 Okl. 251, 142 P. 1002 (1914); Marsh Milling & Grain Co. v. Guaranty State Bank, 69 Okl. 222, 171 P. 1122, L.R.A. 1918D, 704 (1918); City National Bank of Hobart v. State, 73 Okl. 316, 176 P. 232 (1918). There were no suggestions, however, that the bank acquired any greater rights than as a purchaser of the draft or bill of lading.

3. (2) Previously in Oklahoma, a

   bank which, on its own initiative, purchased a draft and bill of lading, which it in turn sold to the buyer, was treated as any other vendor, and was held to warrant the genuineness of the bill. American Nat. Bank- of, Lawton v. J. Rosenbaum Grain Co., 148 Okl. 232, 299 P. 447 (1931). This section of the Commercial Code, however, is not dealing with that type of situation. It governs only those transactions in which the bank has honored or purchased the draft at the request of the buyer. In that event, the financing agency does not warrant the genuineness of the bill, and is entitled to reimbursement from the buyer even though the bill is a forgery. However, since Section 2 - 103 (1) (b) requires commercial good faith in all transactions, the bank must exercise reasonable care to detect any apparent defects on the face of the document.

   Uniform Commercial Code Comment

   The Uniform Commercial Code was developed by

   The American Law Institute and the National Conference of Commissioners on Uniform State Laws. These organizations hold the copyright on the official comments to the Uniform Commercial Code. The Oklahoma Supreme Court attempted but was unable to obtain permission to reproduce the Official Comments here. For more information on these organizations, click on the links above. To email your comments, click on one of the links below. The American Law Institute
   4025 Chestnut Street
   Philadelphia, PA 19104
   Phone: (215) 243-1600
   FAX: (215) 243-1664
   Email National Conference of Commissioners on Uniform State Laws
   676 N. St. Clair Street, Suite 1700
   Chicago, Illinois 60611
   (312) 915-0195
   Email

   Definitional Cross References:

   "

   Buyer". Section 2-103.
   "Document of title". Section 1-201.
   "Draft". Section 3-104.
   "Financing agency". Section 2-104.
   "Good faith". Section 2-103.
   "Goods". Section 2-105.
   "Honor". Section 1-201.
   "Purchase". Section 1-201.
   "Rights". Section 1-201.
   "Value" Section 1-201.

Laws 1961, p. 90, §