Warranties on Negotiation or Transfer of Receipt or Bill

Warranties on Negotiation or Transfer of Receipt or Bill. Where a person negotiates or transfers a document of title for value otherwise than as a mere intermediary under 5 CMC § 7508, then unless otherwise agreed he warrants to his immediate purchaser only in addition to any warranty made in selling the goods: (a) That the document is genuine; and (b) That he has no knowledge of any fact which would impair its validity or worth; and (c) That his negotiation or transfer is rightful and fully effective with respect to the title to the document and the goods it represents. Source: PL 3-56, § 1 (§ 7507).