New York Uniform Commercial Code Law Section 7-507 - Warranties on Negotiation or Delivery of Document of Title.

Section 7--507. Warranties  on  Negotiation  or  Delivery of Document of
                Title.
If a person negotiates or delivers a  document  of  title  for  value,
  otherwise  than  as  a  mere  intermediary  under Section 7--508, 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) the document is genuine;
(2) the transferor does not have knowledge  of  any  fact  that  would
  impair the document's validity or worth; and
(3)  the  negotiation or delivery is rightful and fully effective with
  respect to the title to the document and the goods it represents.

Last modified: February 3, 2019