§ 6A-2-506 - Rights of financing agency. - Rhode Island Statutes

SECTION 6A-2-506

   § 6A-2-506  Rights of financing agency.– (1) A financing agency by paying or purchasing for value a draft which relatesto a shipment of goods acquires, to the extent of the payment or purchase andin addition to its own rights under the draft and any document of titlesecuring it, any rights of the shipper in the goods including the right to stopdelivery and the shipper's right to have the draft honored by the buyer.

   (2) The right to reimbursement of a financing agency whichhas in good faith honored or purchased the draft under commitment to orauthority from the buyer is not impaired by subsequent discovery of defectswith reference to any relevant document which was apparently regular.