8.2-506 - Rights of financing agency. - Virginia Statutes

§ 8.2-506. Rights of financing agency.

(1) A financing agency by paying or purchasing for value a draft whichrelates to a shipment of goods acquires to the extent of the payment orpurchase and in addition to its own rights under the draft and any documentof title securing it any rights of the shipper in the goods including theright to stop delivery and the shipper's right to have the draft honored bythe buyer.

(2) The right to reimbursement of a financing agency which has in good faithhonored or purchased the draft under commitment to or authority from thebuyer is not impaired by subsequent discovery of defects with reference toany relevant document which was apparently regular.

(1964, c. 219; 2004, c. 200.)