If a person negotiates or delivers a document of title for value, otherwise than as a mere intermediary under Section 36-7-508, then 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.

HISTORY: 1962 Code Section 10.7-507; 1966 (54) 2716; 2014 Act No. 213 (S.343), Section 2, eff October 1, 2014.

Editor's Note

2014 Act No. 213, Section 51, provides as follows:

"SECTION 51. This act becomes effective on October 1, 2014. It applies to transactions entered into and events occurring after that date."