Sec. 42a-2-506. Rights of financing agency.
Sec. 42a-2-506. Rights of financing agency. (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.
(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.
(1959, P.A. 133, S. 2-506; P.A. 04-64, S. 51.)
History: P.A. 04-64 amended Subsec. (2) by deleting "on its face" to conform to revisions made to article 7 by the
same act.