Iowa Code § 554.7507: 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 554.7508, 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.