Warranties on negotiation or delivery of document of title

4-7-507. 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 4-7-508, 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. Source: L. 2006: Entire article R&RE, p. 488, � 2, effective September 1. L. 2007: IP amended, p. 373, � 22, effective August 3. Editor's note: This section is similar to former � 4-7-507 as it existed prior to 2006.