If a person negotiates or delivers a document of title for value, otherwise than as a mere intermediary under G.S. 25-7-508, 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. (1917, c. 37, s. 44; 1919, c. 65, s. 34; C.S., ss. 316, 4084; 1965, c. 700, s. 1; 1998-217, s. 4(c); 2006-112, s. 25.)
Sections: Previous 25-7-404 25-7-501 25-7-502 25-7-503 25-7-504 25-7-505 25-7-506 25-7-507 25-7-508 25-7-509 25-7-601 25-7-602 25-7-603 25-8-101 25-8-102 Next
Last modified: March 23, 2014