400.7-507. Warranties on negotiation or transfer of receipt or bill.
Warranties on negotiation or transfer of receipt or bill.
400.7-507. Where a person negotiates or transfers a documentof title for value otherwise than as a mere intermediary undersection 400.7-508, then unless otherwise agreed he warrants tohis immediate purchaser only in addition to any warranty made inselling the goods
(a) that the document is genuine; and
(b) that he has no knowledge of any fact which would impairits validity or worth; and
(c) that his negotiation or transfer is rightful and fullyeffective with respect to the title to the document and the goodsit represents.
(L. 1963 p. 503 § 7-507)