§ 25-2-506. Rights of financing agency.
§ 25‑2‑506. Rights of financing agency.
(1) A financing agencyby paying or purchasing for value a draft which relates to a shipment of goodsacquires to the extent of the payment or purchase and in addition to its ownrights under the draft and any document of title securing it any rights of theshipper in the goods including the right to stop delivery and the shipper'sright to have the draft honored by the buyer.
(2) The right toreimbursement of a financing agency which has in good faith honored or purchasedthe draft under commitment to or authority from the buyer is not impaired bysubsequent discovery of defects with reference to any relevant document whichwas apparently regular. (1965, c. 700, s. 1; 2006‑112, s. 34.)