§ 25-7-507. Warranties on negotiation or delivery of document of title. - North Carolina Statutes

§ 25‑7‑507. Warranties on negotiation or delivery of document of title.

If a person negotiates ordelivers a document of title for value, otherwise than as a mere intermediaryunder G.S. 25‑7‑508, unless otherwise agreed, the transferor, inaddition to any warranty made in selling or leasing the goods, warrants to itsimmediate purchaser only that:

(1)        The document isgenuine;

(2)        The transferor doesnot have knowledge of any fact that would impair the document's validity orworth; and

(3)        The negotiation ordelivery is rightful and fully effective with respect to the title to thedocument 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.)