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General Laws

[ Text of section effective until July 1, 2013. For text effective July 1, 2013, see below.]

  Section 7-507. Where a person negotiates or transfers a document of title for value otherwise than as a mere intermediary under the next following section, 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.

Chapter 106: Section 7-507. Warranties On Negotiations Or Delivery Of Document Of Title

[ Text of section as recodified by 2013, 30, Sec. 45 effective July 1, 2013 applicable as provided by 2013, 30, Sec. 116. For text effective until July 1, 2013, see above.]

  Section 7-507. 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.

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