Nebraska Uniform Commercial Code 7-507

UCC 7-507

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 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.

Annotations

  • COMMENT

  • Prior Uniform Statutory Provision: Former section 7-507.

  • Changes: Substitution of the word "delivery" for the word "transfer", reference leasing transactions and style.

  • Purposes:

  • 1. Delivery of goods by use of a document of title does not limit or displace the ordinary obligations of a seller or lessor as to any warranties regarding the goods that arise under other law. If the transfer of documents attends or follows the making of a contract for the sale or lease of goods, the general obligations on warranties as to the goods (sections 2-312 through 2-318 and 2A-210 through 2A-316) are brought to bear as well as the special warranties under this section.

  • 2. The limited warranties of a delivering or collecting intermediary, including a collecting bank, are stated in section 7-508.

  • Cross References:

  • Point 1: Sections 2-312 through 2-318 and 2A-310 through 2A-316.

  • Point 2: Section 7-508.

  • Definitional Cross References:

  • "Delivery". Section 1-201.

  • "Document of title". Section 1-201.

  • "Genuine". Section 1-201.

  • "Goods". Section 7-102.

  • "Person". Section 1-201.

  • "Purchaser". Section 1-201.

  • "Value". Section 1-204.