411.581. Warranties on negotiation or transfer of receipt. - Missouri Statutes

Warranties on negotiation or transfer of receipt.

411.581. A person who for value negotiates or transfers areceipt by endorsement or delivery, including one who assigns forvalue a claim secured by a receipt unless a contrary intentionappears, warrants:

(1) That the receipt is genuine;

(2) That he has a legal right to negotiate or transfer it;

(3) That he has knowledge of no fact which would impair thevalidity or worth of the receipt; and

(4) That he has a right to transfer the title to the grain,and that the grain is merchantable or fit for a particularpurpose whenever such warranties would have been implied if thecontract of the parties had been to transfer the grain withoutreceipts represented thereby.

(L. 1965 p. 606)

CROSS REFERENCE:

Commercial code provision, RSMo 400.7-507